Sales Concessions...What types are best and novel to home purchasers?

Welcome to the Active Rain community. This is a great site with lots of information.  Have fun with it and hope to see more of your blogs soon!  We have a team of three outstanding full time agents to assist your buyers and sellers in Spartanburg/Greenville, SC.  Let us know if we can ever help. Again, welcome to AR!!

Teresa I have added you to my associates and look forward to your blog.  Home warranty sales concessions are not exciting and many have poor reviews ...especially when you Google them for not covering older homes under "Pre-existing" condition it makes the sales concession sour lemons and the real estate agent may hear about it or may not.

I have seen gas cards used in San Antonio as you have probably seen too.  Creativity is a great option for realtors -- such as listing homes on blogs and doing nontradional things builds client confidence immediately.  What the industry needs is more innovation -- that's what clients really want.   The old saying  "if you got it flaunt it" holds true for real estate sales.   

Hi Teresa and welcome to active|rain.

I'll be sure to pop back in on this post. I actually had a similar question. Maybe someone will answer yours. 

There are thousands of tips, tools, and tricks of the trade here. Be sure to check them out. Best of luck and see you around.

Friend me on Facebook 

Follow me on Twitter

Teresa - LOL - I see what you mean. A lot of point grabbers, but little advice...

From a lenders perspective, I see Seller Concessions as the seller contributing to wards the buyers closing costs. These are addressed by the lender as to what is acceptable. Generally, it includes soft and hard costs associated with the close of the sale. It can help reduce the amount of funds necessary to close the deal. It also generally increases the loan amount.

From a Buyer's perspective, it can help them buy more home or keep cash free for other purposes. A Seller or Builder can use concessions to help a home sell quicker.

One item that I see too often is when a Buyer or Seller negotiate for things of value and put them into the sales contract without properly structuring the deal. An example would be my own brothers purchase. They wanted several items left behind, like a snow blower, riding lawn mower and small tractor. These were placed in the contract. We had to get an amendment stipulating that they had no value, or the sales price would have been increased and my brother would have had to come to the table with more funds. It also would have been taxable income for my brother.

My advice to buyers, sellers and Realtors is to discuss concessions with a lender, and possibly CPA,  before hand so that you know what will work, what the benefits are and what might get the parties in trouble.

Welcome back to ActiveRain!

    Much has changed since your last visit to ActiveRain.  I encourage you to take another look at the website. 

    Surf some blogs, leave some comments.  Better yet, post a Blog.

    Best to you!