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What Is A Sellers Concession?



What are Sellers Concessions and how exactly do they work?  

Whether you are Buying OR Selling a Home, Seller concessions can be the winning difference,  in bringing both Buyer and Seller together for a Win-Win.  

So , technically, what is a sellers concession? 

Simply put, its the dollar amount the seller agrees to pay towards the buyers closing cost....For details about closing costs, check out either of these videos :
?? Details abbout Buyers Closing Costs 
?? Details about Sellers Closing Costs Details about Sellers closing costs
Click Here: NEW 2020 Sellers Guide...Yep!, It's FREE

Now If you the homeowner, you’re probably thinking: ‘Why would I want to pay for someone  elses closing costs when I have my own closing costs to pay?

Let’s take a look at an example how sellers concessions could benefit both the buyer and seller: 

As a Buyer, Say you found a house that you have fallen I love with and it’s listed for $300,000. and you really need $10,000 to help towards your closing costs. 

In todays market, there’s a good chance you may be competing against multiple offers and perhaps even Cash offers. 

Before you make an offer, your agent should have a good idea of how much the home is worth.  

Using this example, your agent might think it’s worth $310-$315,000.  

You could offer the seller his full asking price of $300,000 and ask for a seller concession of $10,000 towards your closing costs. 

But this is going to net the seller $290,000.. Which, mostly likely WILL NOT be appealing.. And if the seller is looking at multiple offers, they may be quick to put your offer in the “No Go” stack. 

The best way to turn this around is to make your purchase price $310,000 ( or slightly more) and then ask for the $10,000 in sellers concessions towards your closing costs.   

The seller would then net their Full asking price of $300,000. 

Plus the buyer gets their closing costs paid.. It’s a Win-Win!

The only caveat is  that the home must appraise for at least the amount of the contractual purchase price.. $310,000 in this example.

Some buyers might be apprehensive about offering over the list price, thinking their payment will increase significantly.

Let me put those fears to rest.. 

To quickly calculate an estimate of how much your payment will increase if you adjust your offer price, use this simple formula: It’s $4 per thousand..  

Again, using this example: You’re offering $10,000 over the list price.  $10,000. X .004 = $40.00

Now ask yourself: Is an extra $40 a month on my payment worth having my closing cost paid, AND having a much better chance of being the winning bidder for this house I love?

 

You might be wondering if this is a common practice. 

The answer is yes!  

In fact I looked at the last 30 homes that have sold in the past 60 days ranging in price from $110,000 to $360,000. 

18 of the homes sold had seller concessions. And out of those 18, 7 of them sold for over the list price. 

As a buyer, It’s also important to know your limitations on the amount of concession you can ask for from a seller....That is, if you are financing your new home. 

This depends on which type of financing you’re doing. Your loan officer will be able to give you the best advice based on your specific situation. 

Asking for 3% of the purchase price for a seller concession is very common in our marketplace. 3% also falls within the limitations of all types of financing too. 

I’m Curious, as you’re watching this video, are you a buyer, or a seller? Let me know by dropping me a comment below. 

So the next time you ask someone how much their house sold for and they say $300,000 with a $10,000 seller concession.. What they are really saying is their home sold for $290,000.. That’s what they walked away with. 

Keep that in mind when you’re chatting up the neighbor about how much their home sold for. 

The key to making this work for both sides is a meeting of the minds. Before your Realtor writes the offer, they should ask the other agent great questions to learn as much as possible about what is most important to sellers.  It’s not always about the money, guys!

For example: 

Have your agent find out how many offers are currently on the table. 

Find out if there is a special reason why the homeowners are selling. 

Maybe a flexible move out date is important to seller , as to not be pressured while their new home is being built, and has already had 2 delays due to unforseen weather.  

Or maybe you can be flexible with needed repairs.. Don’t underestimate this one...It’s worth $$ to a seller to not have to deal with repairs! 

 

Although we live in a technology driven world, I still believe buying or selling residential real estate is a very personal transaction. Selling can be emotional too.

Remember, Knowledge is Power.
It’s easy to get caught up in striving to get what we want. 
 

If you know why and what the other side really wants, half the battle is won.   So make sure you have a seasoned Realtor who understands how to bring out the best in sides based on these true needs for a Win-Win. 

I’m Lisa Kelly with Premier Realty, and I hope you share this video with someone you think may find it helpful. 

Until then, I’ll see you on the next one.  

 

 

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What my clients are saying  

My experience while purchasing my first home was the best experience I've ever experienced. With Lisa's guidance it was a stress free experience. She made sure I was comfortable and understood every step. She gave her opinion from the heart. You can tell she genuinely wanted you to have the home you desired. She is very personable and that's great when you are purchasing a large investment. I am forever grateful of her help. So if you are looking to have a wonderful experience while purchasing or selling any property Lisa Kelly Realtor is the way to go.

 

~ Candace Engram

Candace Engram ????? 18 weeks ago My experience while purchasing my first home was the best experience I've ever experienced. With Lisa's guidance it was a stress free experience. She made sure I was comfortable and understood every step. She gave her opinion from the heart. You can tell she genuinely wanted you to have the home you desired. She is very personable and that's great when you are purchasing a large investment. I am forever grateful of her help. So if you are looking to have a wonderful experience while purchasing or selling any property Lisa Kelly Realtor is the way to go.

 

~ Candace Engram

Greg Raymond ????? 43 weeks ago Finding and buying the right house can be a difficult and daunting process. When my wife and I found our home online, we needed someone local to the property to assist us as we were out of state. Lisa came recommended by a local acquaintance and she was quick to respond to our call. She was collaborative and professional throughout the process, and was attentive to our needs and questions through closing. I would certainly recommend her!

 

~ Greg Raymond

I had such a positive experience working with Lisa. Not only is she a complete professional, but such a compassionate human being. Her knowledge guiding me through the Florida real estate process was so helpful as a first-time Florida homebuyer. She was always prompt and responsive while going above and beyond. She attended all key inspections in person and kept me informed throughout the entire process. If you are looking for a great real estate experience, look no further. Lisa is your gal to get the job done. I will definitely be working with her again in the future.

 

~ DJ Bradley

I had such a positive experience working with Lisa. Not only is she a complete professional, but such a compassionate human being. Her knowledge guiding me through the Florida real estate process was so helpful as a first-time Florida homebuyer. She was always prompt and responsive while going above and beyond. She attended all key inspections in person and kept me informed throughout the entire process. If you are looking for a great real estate experience, look no further. Lisa is your gal to get the job done. I will definitely be working with her again in the future.

 

~ DJ Bradley

We can’t say enough good things about Lisa Kelly! From the moment she stepped through our front door, she demonstrated all the characteristics you want in your realtor: integrity, friendliness, optimism, thorough knowledge of her field, state-of-the-art technical savvy, unflagging energy and sensitivity to all our own needs and feelings. Our house sold in four days and we are certain this success was largely due to Lisa’s skill and hard work. We highly recommend Lisa Kelly to anyone looking for a top notch realtor!

 

~ Tom and Kim Manske

We can’t say enough good things about Lisa Kelly! From the moment she stepped through our front door, she demonstrated all the characteristics you want in your realtor: integrity, friendliness, optimism, thorough knowledge of her field, state-of-the-art technical savvy, unflagging energy and sensitivity to all our own needs and feelings. Our house sold in four days and we are certain this success was largely due to Lisa’s skill and hard work. We highly recommend Lisa Kelly to anyone looking for a top notch realtor!

 

~ Kim Manske

Kim Manske ?????Aug 21, 2020 We can’t say enough good things about Lisa Kelly! From the moment she stepped through our front door, she demonstrated all the characteristics you want in your realtor: integrity, friendliness, optimism, thorough knowledge of her field, state-of-the-art technical savvy, unflagging energy and sensitivity to all our own needs and feelings. Our house sold in four days and we are certain this success was largely due to Lisa’s skill and hard work. We highly recommend Lisa Kelly to anyone looking for a top notch realtor!

 

~ Joanna Grizzard

Sidney Wyland Lisa Kelly was our realtor that helped us with our move from Utah to Lakeland. She is a very good resource for us in Lakeland and helped us buy our new home. We found Lisa on the internet. She has helped us with all the contacts and scheduling to insure all things here went smoothly. The closing on our home was completed on time which was very important as we had are household goods being delivered from two different states. She also continues to be there for us for any referrals or help we may need here locally. I would highly recommend her to anyone buying a home.

 

~ Rick and Sidney Wyland

Just wanted to thank Lisa for a job well done. I worked with Lisa on 2 of our homes this past year. We sold one in June and another late in the year. Everything went smooth and all details were handled in a very professional manor. Thanks again Lisa; nice working with you. Lee Brown

 

~ Lee and Frankie Brown

We had been looking for a new home for about three months. We changed Realtors and began working with Lisa. She showed us a couple of places. We talked about limits on price and location. We looked again on a couple. We did not care for those. She emailed us about a home that was being restored for a flip. We met her at our current home. We liked the location and made an offer which was accepted. She did a great job getting the seller to accept and a wonderful job from there. The closing took about fifteen minutes. We have been very happy from that day on. Patricia and Bill Crabb

 

~ Bill and Patricia Crabb

We had been looking for a new home for about three months. We changed Realtors and began working with Lisa. She showed us a couple of places. We talked about limits on price and location. We looked again on a couple. We did not care for those. She emailed us about a home that was being restored for a flip. We met her at our current home. We liked the location and made an offer which was accepted. She did a great job getting the seller to accept and a wonderful job from there. The closing took about fifteen minutes. We have been very happy from that day on. Patricia and Bill Crabb

 

~ Bill & Patricia Crabb

Just wanted to thank Lisa for a job well done. I worked with Lisa on 2 of our homes this past year. We sold one in June and another late in the year. Everything went smooth and all details were handled in a very professional manor. Thanks again Lisa; nice working with you. Lee Brown

 

~ Lee & Frankie Brown

01/03/2017 - shunter317 Bought a Single Family home in 2016 for approximately $175K in Lakeland, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: Lisa is an exceptional agent as she knows real estate law and the local market. She communicates and is extremely responsive to her clients questions and needs. She walked us through a complicated contract. We consider Lisa a new friend.

 

~ What Others Had to say

Highly likely to recommend 08/09/2016 - HappyBuyerNEOH Bought a Single Family home in 2016 for approximately $225K in Lakeland, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: I highly recommend Lisa Kelly! She was awesome to work with through the whole process. Her communication and promptness went above and beyond my expectations. Working in the mortgage industry, I see all types of realtors, if you want a genuine, awesome, go getter- she is your girl!

 

~ What Others had to say

Highly likely to recommend 10/27/2014 - jessbparker Bought a Single Family home in 2014 for approximately $75K in Auburndale, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: I cannot say enough about Lisa Kelly. She helped my husband and I buy our first home when we had limited funds and difficult circumstances. She is extremely knowledgeable about homes, market, taxes- anything you could want to know. She is also an excellent advocate for her clients during negotiations, which really came in handy when you're a nervous first-time home buyer.Less

 

~ What others had to say

Highly likely to recommend 02/22/2014 - par167 Bought a home in 2014. Local knowledge: Process expertise: Responsiveness: Negotiation skills: Lisa Kelly is the hardest working woman I know! If you are in the market to buy or sell take it from my personal experience she delivers results!In Polk County or anywhere else for that matter you will be hard pressed to ever get better service. Paul Renner.....

 

~ What others had to say

Highly likely to recommend 02/25/2012 - user027478 Bought and sold a Single Family home in 2011 for approximately $275K in Lakeland, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: Lisa is the most professional realtor I've ever worked with... she's direct, honest, highly-knowledgable, very responsive and a consummate professional. She played fundamentally important roles in helping us to sell our house in a tough market. She's a hard worker and also gave us great advice and we were able to sell after listing for about 30 days. She then helped us find and close on our dream home. Her persistance and negotiating savvy helped us buy a house that was not a very convential listing. If we'd had an average realtor, we'd have been a lot less successful with both our deals. I'd recommend Lisa to anyone who wants to work with a genuine professional. She could write a book on what it takes to be an outstanding service provider.

 

~ What others had to say

02/09/2012 - Alyson7707 Bought a Single Family home in 2009 for approximately $125K in Bartow, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: We absolutely loved our experience with Lisa.. She is incredibly knowledgeable and dedicated to finding the home of your dreams. We couldn't be happier with the home she found us or the time we spent with her--she made the experience exciting and easy. We do not hesitate to recommend her to friends and family and will absolutely work with her in the future. Thanks again Lisa! -Michael & Alyson Elrod

 

~ what others had to say

Highly likely to recommend 02/08/2012 - AimeeWeed Bought a Single Family home in 2010 for approximately $100K in Auburndale, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: Lisa was always quick to respond to my questions. I honestly think that my family and I would not be in this wonderful house without her hard work. She is honest, not afraid to give her opinion in a helpful way, and she is very knowledgeable in all aspects of her job.

 

~ what others had to say

Wonderful wonderful experience. Lisa is what I call a dream maker. I had the dream, and she made it a reality.Lisa's hard work, her quick response, her compassion in knowing I was a single mom purchasing my first house, has earned my loyalty in using her as my realtor for life.

 

~ what others had to say

Highly likely to recommend 03/09/2011 - reedswife11 Bought and sold a Single Family home in 2011 for approximately $75K in Lakeland, FL. Local knowledge: Process expertise: Responsiveness: Negotiation skills: This woman is amazing, we have run into every road block imaginable and she has negotiated our problems quickly and effectivly everytime. Always available and Always puts her clients first

 

~ what others had to say

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