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Using the Seller Concession to Win the Listing

Thank you for the many comments on my buy-down post. Maybe I should mix up the meanings slightly everytime since this spurred many comments. I really appreciated everyone's insight.

I spoke to one of the real estate agents that send me business and we discussed a strategy to use the seller concession as a way to "Win the Listing". I know that builders use it often to get houses sold. Why not individual sellers?

My friend went through the expired's in the MLS and made 5 calls and got 2 appointments. The most recent agent had told the client that they needed to drop the price in order to get the home sold, but obviously there were no guarantees. (And we all know it is never the seller's fault that the home is over-priced) In both cases the agent did not offer new comparables to support this strategy...shame on them. My friend went in and told them to keep the same price but offer to pay points or closing costs up to 3% of the purchase price. We kept it at 3%, in case the buyer went with a program that only allow the smaller seller concession. In this case the 3% was $7,500. This was better than the $12,000 drop offered by the existing agent.

She got that listing, not the other one. Using her lender partner she was able to use the loan program to sell the idea of listing with her. The seller wins, the buyer wins, the agent wins and I won.

Four wins on one listing. I'll take it.

Posted by John Klassen on 11/29/2006 06:47 AM

Comments (5)

5 Comments on Using the Seller Concession to Win the Listing

NOV

2006

Hi John, it's a good idea. Our MLS will not allow us to put any time of financing infor in our description, including paying seller concessions. We can put it in agent remarks but then it's up to the agent to tell the client. In our market here, it's almost a given that the seller is going to pay some kind of closing costs to get the deal done.

i buyer's agent that has a cash poor, yet motivated client, would love to see those remarks cynthia.

i have preapproved borrowers out shopping right now. they want near zero out of pocket because they do not want to deplete cash reserves.

i have heard stories from agents that when seller concessions are entered on the offer, that the offer is looked at dimly.

i think all agents, buyers/lister, can benefit by working with a lender who explains the seller concessions well.

As withall real estate transactions different strategies will work differently for each market and transaction. For the poast three years seller's concessiojns were not even considered by listing agents as the market was HOT and sellers had bidding wars for their home. It has slowed and many are willing to listen. Even in that hot market, if buyers were patient they could find the right property with a willing seller.

Remember, the sael of a property happens when there is "A meeting of the minds". It is our job to prepare thebuyer and the seller to consider many options and evaluate them. If we create this we set ourselves apart from the crowd are are viewed as professionals. Our job is to make sure everyone WINS.

Thanks for the comments.

DEC

2006

Thanks John. Another nugget from the mother loade of experience!

DEC

2006

That's what I like about this site. I have shared a lot but learned more. You should look at the many comments. There are some real smart LOs in Active Rain. Kudos to all.

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