February 22nd, 2010
Which is the biggest benefit of offering buyer concessions when selling your home?
1. You can raise the price and make it look like a better deal for the buyer.
2. Your property will usually sell quicker.
3. You don’t have to do as much work to the home.
Related posts:
- How much does attorneys charge during a home buying process ? I am a first time home buyer and have some quick questions: Home price around $220K 1) How much do attorneys charge me as a buyer in the home...
- As a first home buyer in Australia, am I better to buy as cheap as possible or go for better long-term growth? My wife and I live in Queensland. We are looking to buy our first home – in south-west Brisbane. We are in two minds: buy as cheap as possible...
- Can you bid on a Property that is under contract in a short sale? I found the perfect dream home fixer upper in the town I grew up in. I called this morning and the Realtor told me it just went under contract...
- Can the buyer of a short sale home, turn around and rent it back to the people that are short selling? We are trying to short sale our house and were approached by some people from up north that wanted to buy some property here in Florida and rent it...
- Ever used a quick sale company to sell you home? in a bit of a dilemma, the sale of our house has fell through for the third time last week. we moving to spain and want to get going...
Filed under: Sell Property
Really none of the above. I’ll address each then add some additional:
1. – You can sell your house for what ever the market will bear. While you may get a bit more offering seller concesions the money doesn’t go to you. It goes to pay closing costs. Remember that no matter what you are offered for your home, if it doesn’t appraise for that price the borrower wiill have to come up with the additional cash to make up the difference.
2. – A seller concession won’t make your property sell any quicker. An estimated 65% of potential buyers will ask for a seller concession at the time of offer anyway.
3. – If I’m going to make an offer on your home two very important things have to happen first. I have to be able to afford it, (yes, a concession will help do that) and I have to like it. If your home is badly in need of repair no seller concession (short of the money needed to do the work) is going to make me buy it.
So now, what advantage does offering a seller concession give to the seller? I’ll name just a few:
1. – Many first time home buyers are shut down by the fact they don’t have the money needed to complete the transaction, ie: closing costs. By offering a seller concession to cover these costs you open up the market to buyers that might not otherwise be able to purchase.
2. – Offering a seller concession actualy makes you MORE money. How? Well lest’s assume you are listing your house for $200,000 – Statisticly you will end up selling for $180,000 – Now let’s say you accept an offer of $192,000 with a 6% seller concession. You recieve the $180,000 – Your buyer gets to borrow the addiyional $12,000 to apply to their closing costs – even though they are borrowing the money you are taking the loss – At the end of the year you claim it on your taxes.
You got your price and a $12,000 write off. There in lies the true benefit of a seller concession.