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🏡 Should You Offer Seller Concessions? Here's What to Know

 


As a home seller, you have options when it comes to marketing your property. One strategy is to offer seller concessions—financial incentives that can help attract buyers or close a deal more quickly. Here’s what you need to know to decide if this approach makes sense for you:

What Are Seller Concessions, and Why Offer Them?💰

Seller concessions are costs that you, the seller, agree to pay on the buyer’s behalf. These can make your home more appealing by reducing the buyer’s upfront expenses, which is especially helpful for buyers with limited cash. Concessions can lead to a quicker sale or a more competitive offer.

Examples of Common Seller Concessions 🛠️

You can choose to cover a wide range of buyer-related expenses, including:

  • 📄 Title search fees

  • 🏦 Loan origination or appraisal costs

  • 🔍 Home inspections

  • 🏘️ HOA fees

  • 🧾 Property taxes

  • 🔧 Home repairs or upgrades

  • 👩‍💼 Fees for professionals like real estate agents or attorneys

How Do Seller Concessions Work? 📃

Seller concessions can be advertised upfront or negotiated during the offer stage. They are typically stated as a specific dollar amount in the purchase agreement. Remember: concessions aren’t official until they’re included in a signed contract.

Concessions vs. Offers of Compensation 🤝

While concessions cover buyer-related costs, an offer of compensation refers specifically to the seller or listing agent offering payment to the buyer’s agent for successfully closing the transaction. These are separate from concessions and have different rules.

How to Let Buyers Know You're Offering Concessions 📢

You can promote concessions through marketing, during negotiations, or on the Multiple Listing Service (MLS). However, keep in mind:

  • ❌ Not all MLSs allow concessions to be detailed.

  • ✅ Some MLSs only let you indicate “yes” or “no” to whether a concession is offered.

  • 💵 If included on the MLS, concessions must be listed as a total dollar amount and cannot be contingent on paying a buyer’s agent.

Are There Limits to What You Can Offer? ⚠️

Yes. Lenders and state laws may cap the total value of seller concessions. However, payments specifically covering a buyer's broker fee do not count toward these limits and must be handled off-MLS.

Choosing the Right Strategy 🧭

A qualified real estate agent who is a REALTOR® will help you weigh your options and develop a strategy tailored to your goals. REALTORS® are bound by a Code of Ethics that puts your interests first, ensuring professional and transparent guidance throughout the process.

Whether buying, selling, or seeking valuable insights into the market, I'm here to be your trusted guide in the dynamic world of real estate. Feel free to contact me for a confidential discussion, where we can explore your goals, address any questions, and navigate the exciting path of real estate together. Your real estate journey is unique, and I am committed to providing personalized assistance tailored to your needs. Don't hesitate to connect.

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Location: Ann Arbor, MI, USA

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