When purchasing a home, there are many costs to consider beyond just the sale price. From closing costs to property taxes, the expenses can add up quickly. One option to help offset these costs is to ask for concessions from the seller. In this article, we’ll explain what concessions are and how to ask for them when purchasing a home.
What are concessions?
Concessions are incentives that a seller offers to a buyer to help offset some of the costs associated with purchasing a home. Concessions can take many forms, such as a reduction in the sale price, a credit toward closing costs, or even including personal property, such as furniture or appliances, in the sale.
Why ask for concessions?
Asking for concessions can be beneficial for buyers who are struggling to come up with the funds needed to cover all of the expenses associated with purchasing a home. For example, closing costs typically range from 2% to 5% of the purchase price, and can include fees for things like title insurance, appraisals, and legal fees. By asking for concessions, buyers can potentially save thousands of dollars, which can make a big difference when it comes to their overall affordability and ability to finance a home.
How to ask for concessions
Asking for concessions can be a delicate process, as buyers want to ensure they are not insulting the seller or causing any unnecessary tension in the negotiation process. Here are some tips to help you ask for concessions effectively:
Do your research
Before asking for concessions, it’s important to do your research and understand the local real estate market. Look at comparable homes in the area to see what they sold for and what concessions, if any, were offered by the sellers. This information can help you determine what concessions are reasonable to ask for, given the local market conditions.
Make a reasonable request
When asking for concessions, it’s important to make a reasonable request that takes into account the seller’s financial situation and motivation for selling. For example, if the seller is highly motivated and the home has been on the market for a long time, they may be more willing to offer concessions. On the other hand, if the seller is not in a rush to sell and has received multiple offers, they may be less likely to offer concessions.
When asking for concessions, be specific about what you are requesting and why. For example, if you are asking for a credit toward closing costs, provide a detailed breakdown of the costs and how the credit will help you financially. By being specific, you can help the seller understand your needs and make a more informed decision about whether or not to offer concessions.
Be prepared to negotiate
When asking for concessions, it’s important to be prepared to negotiate with the seller. They may not be willing to offer everything you ask for, so be open to compromise and find a solution that works for both parties.
In conclusion, asking for concessions can be a useful strategy for buyers looking to offset the costs of purchasing a home. By doing your research, making a reasonable request, being specific, and being prepared to negotiate, you can potentially save thousands of dollars and make the home-buying process more affordable and accessible.
Still have questions about concessions? Give us a call (931) 520-7750 and one of our agents can assist you!