Real Estate Advice
Seller Concessions
in Today’s Market
Dear Pat,
Our elderly
neighbors just sold their house after two months on the market. They
told us they got very close to their reduced asking price, but had to
agree to pay the buyer’s closing costs. Somehow it doesn’t seem right
for a seller to pay costs of the buyer. Is there something wrong
here?
---Just Wondering
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Dear Wondering,
No, nothing is wrong or illegal with the seller paying the buyer’s
closing costs. It’s been a common practice for years, often used to
help cash-poor buyers who were willing to add the closing costs on top
of the price offered on the home. For example: an offer of $205,000
on a house priced at $200,000, asking the sellers to pay $5000 of the
buyer’s costs (which would still give the seller $200,000).
But now we see it more often as a seller concession, with no
compensation to the sale price. In this market a seller is often
willing to pick up a substantial portion of the buyer’s costs—it’s the
same as agreeing to sell for less. This is especially true if the
home has been on the market for 30 days or more. Other seller
concessions that we see more frequently these days include decorating
allowances, and substantial improvements or repairs (not necessarily
related to safety) after the buyer’s inspection. It really comes down
to being competitive and willing to negotiate with buyers in a market
full of inventory. |
Naturally, if a home sells quickly
there is less “give” from the seller. Regardless
of what we all read in the paper about market-time
averages, many houses are candidates to sell in
the first ten days if they offer at least two of
the following attributes: great condition,
desirable location, and market-conscious price.
Of course, the last of these is the most
critical—if an otherwise worthy home is seen as
too expensive, the adjustment will eventually
happen in price reductions and seller
concessions.
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Pat
Rosaves is a full-time real estate
professional living in the Seward -
Longfellow area. She has more than 29
years experience in helping people with
their real estate needs. Questions may be
sent to her at River Realty, 2543 38th
Avenue South, Mpls, MN 55406. Or call her
at 612-724-1314 or email her at Pat@RiverRealty.net |
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