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

Reblogger Gita Bantwal
Real Estate Agent with RE/MAX Centre Realtors
Original content by Beth Atalay

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?

 

 

Where to live in Orlando

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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

 

CAM Realty

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Rainer
464,428
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

Great advice!!!

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.

Jun 26, 2018 05:05 AM #1
Rainmaker
2,938,895
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Gita. Beth nails it. It is a local play.Enjoy your day!

Jun 26, 2018 05:06 AM #2
Rainmaker
4,640,070
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the re-blog Gita.  This is excellent advice for buyers in today's market.

Jun 26, 2018 05:06 AM #3
Rainmaker
4,320,548
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Sham, thank you 

Jun 26, 2018 05:38 AM #4
Rainmaker
4,320,548
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Wayne, thank you 

Jun 26, 2018 05:38 AM #5
Rainmaker
4,320,548
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Gabe, thank you 

Jun 26, 2018 05:39 AM #6
Rainmaker
3,837,349
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Gita, we have not seen any concessions in our contracts in the last few years.   We have had a HOT market now for 5 years.

Jun 26, 2018 05:56 AM #7
Rainmaker
4,968,487
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much, Gita, for sharing this excellent reblog selection.

Jun 26, 2018 06:09 AM #8
Rainmaker
1,432,003
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Gita, Beth did a great job on this post and it offers a lot of advice. Great re-blog!

Jun 26, 2018 06:42 AM #9
Rainmaker
4,320,548
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Joan, thank you for reading.

Jun 27, 2018 02:49 AM #10
Rainmaker
4,320,548
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Roy, thank you for the comment.

Jun 27, 2018 02:49 AM #11
Rainmaker
4,320,548
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Amanda, thank you.

Jun 27, 2018 02:49 AM #12
Rainmaker
2,965,509
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gita, I remember when our friend wrote this great post and Beth Atalay  always has good advice, Endre

Jun 27, 2018 03:39 PM #13
Rainmaker
4,320,548
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Endre, I agree.

Jun 27, 2018 03:42 PM #14
Rainmaker
2,898,351
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

You are on a reblog Roll Gita...maybe there is a contest I dont know about!

Jul 03, 2018 07:20 AM #15
Rainmaker
4,320,548
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Kristin, I am not aware of any.

Jul 03, 2018 07:51 AM #16
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Rainmaker
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Gita Bantwal

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
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