What are seller concessions in a real estate transaction?
“Seller concessions” is a term that we have not seen for the last couple yearsbut has made a comeback, and in our normal real estate markets, is a term that we see very frequently. Seller concessions can be a number of things. It could be —as a result of negotiation when you first make an offer—where you would ask for the seller to give you concessions and/or a credit towards your closing costs.
These concessions could also be in the form of points, wherein you ask the seller in your negotiation to pay for some of your points. This would allow you to buy down your interest rate.
The other time that seller concessions come up would be when we are maybe part way through the contract, and we get into a home inspection. As a result of a home inspection, there may be repairs that need to be done to the home. In lieu of the seller making those repairs, they could give you a seller credit or seller concessions that you would then be able to apply towards those repairs after settlement.
The items mentioned above are just a few examples of seller concessions in a residential contract of sale. If you have any other questions related to this topic, give us a call, and we’ll be happy to answer them for you.