Should Home Buyers Ask for Seller Concession in a Seller’s Market?

Should Home Buyers Ask for Seller Concession in a Seller’s Market?

Seller Concession is when the Buyer is asking for the Seller to pay all or part of their closing costs mostly associated with their mortgage. When a Buyer asks for a Seller Concession, it does not mean they do not have the Cash but simply means they(Buyers) don’t want to use the cash they have towards their closing costs. There are different ways to ask for the seller to pay part or all of the Buyer’s closing costs. How about asking for Seller concession in a Seller’s market?

In certain areas of Central Florida, listings receive multiple offers within the first couple of days of being on the market. If you are a Buyer putting an offer on a house in an area where there’s low inventory and high demand, it is a Seller’s Market and you have to keep in mind that you might be in a multiple offer situation.

For example, if the list price is $300,000 and you HAVE to ask for seller concession in the amount of $10,000, you might think about offering $310,000 including $10,000 towards Buyer’s closing costs. Your offer is over the list price by $20,000, however, $10,000 of that is to pay for your closing costs and Seller will still get $10,000 over the asking price. This is of course if you really want the house! Keep in mind, the home must appraise for the contract price unless you(the buyer) will be waving the appraisal contingency.
Offering below list price and asking for Seller concession will most likely result in “rejection of your offer”.
Prior to writing the offer, your Realtor should analyze the data of Active/Pending and Sold comps in the area including days on market, list price/sale price ratio, number of Cash transactions vs financing.
Real estate is very local, ask your Realtor whether it’s a sellers or buyers market and proceed accordingly. Don't give up if you don't win in a multiple offer situation, continue looking and making offers. There's a light at the end of the tunnel, however, your offer should be one that a seller will select. Show them the reason.

If you’re looking to buy or sell a home in Clermont, Minneola, Winter Garden areas, I would love the opportunity to speak with you. You could call me at 407-929-1852, email bethatalay@gmail.com or visit my website at  www.WhereToLiveInOrlando.com

 

Should Home Buyers Ask for Seller Concession in a Seller’s Market?

 

 

Beth Atalay, Broker/Owner Cam Realty and Property Management 407-929-1852 Wheretoliveinorlando.com BethAtalay@Gmail.com Your Orlando Agent - Where to Live in Orlando