Does it add up to the general price of the house? What are the benefits and disadvantages of getting one?
2007-01-09 15:23:00 · 4 answers · asked by lovelyeyes 1 in Business & Finance ➔ Renting & Real Estate
Seller's concessions are what ever the seller decide to concede in order to sell his home. I have listed a few below
#1 Agree to pay some or all the closing cost for the buyer
#2 Agree to replace old carpet in the house of change it because the seller is not to pleased with it.
#3 Agree to allow the escrow to hold money and give to the buyer for painting the interior of the property
These are just a few but they are normally the most common.
Concessions given by the seller does not add the sales price of the house.
The benefits is that the buyer don't have to come out of pocket for the things that the seller has agreed to concede.
I can see very few disadvantages of seller concessions.
The seller gets to sell his home and the buyer get to purchase the home, so it is a win win situation.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-01-09 15:41:56 · answer #1 · answered by Skip 6 · 0⤊ 0⤋
skip and daddyspan both give you good answers. yes, a seller's concession is a thing or things that the seller will give you in exchange for your purchasing his real estate, and that does not mean that you must buy it for his asking price either!
one thing you must watch out for is taking a "credit" to repair something that is wrong. oftentimes, an attorney may decide, without checking prices, that a straight $1,000 is going to cure defects. but that is unfair to you, and your lawyer should not be allowed to let the seller give you a credit in some amount unless you, his client, approves first of the amount that you want for the credit concession.
else, what is bad about these "credits" that the seller will give you on the price of the house is that they only lower your mortgage amount by a few pennies per day, they do not, unless specified differently and allowed by the lender, provide you the actual cash that you need to make the repairs. if that is what you want, cash, that can be dangerous because lenders do not want you getting cash at closing. talk to your real estate attorney about that. then, whatever is going to work for you and the seller, write it onto your contract.
what i'd rather do than take a credit to repair something would be to make the seller repair it at his cost prior to your final walkthrough, in fact, i'd say, fairly, in the 2nd or 3rd week before your closing date. that's so that you can see if the work was done properly and according to code. you can have your home inspector come back to check it for you, usually free. the reason i'd rather have the seller fix it is because i have a job to do to make money to may my mortgage! and the time spent shopping contractors and your inspecting their work in progress may be too much for you to handle.
yes, concessions can really be anything the seller gives you to entice you to buy his real estate over another piece. you also need to know that if the seller ADVERTISES that you will get a brand new HD tv system at closing, you had better know the brand, the size, and all periphreals that will come with the system. that's because it is illegal to falsely advertise anything, so the ad should be specific.
2007-01-10 00:48:24 · answer #2 · answered by Louiegirl_Chicago 5 · 1⤊ 0⤋
Sellers concessions in real estate is when the seller wants to sell the house for whatever reason and has to make some concession to the buyer for them to buy the house. I bought my house 2 1/2 years ago and I had to jump on the house. Today, sellers are making all kilds of concessions. New homes are being sold with a seller's concession of a new car to the buyer. A sellers concession is anything the seller concedes to the seller to sell the house.
2007-01-09 23:59:34 · answer #3 · answered by daddyspanksalot 5 · 0⤊ 0⤋
If you're the buyer, seller concessions are great! sellers usually give an allowance of how much they wanna "concede" for instance 15,000 towards closing cost that mean that after you've been raped by your broker!!!.. who probably is charging you 10,000 you have 5,000 left to pay for all the "closing fees" like the appraisal, title, escrow, notary, lender fees excluding interest. and your DISCOUNT (BUY DOWN) points (usually like $2000)
although the seller may want to give you 15k some lenders don't let you use the money to pay recurring(happen more than once) cost like your taxes, insurance, interest on the loan and usually anything thats been "pre-paid" so the key to getting the most seller "concession" is to not pay for anything upfront. pay everything through the loan. unless it doesn't have anything to do with the loan like paying your car through the loan or your credit cards, that can't be paid for by the seller.
Bottom line is they're paying your broker fee.. they usually take the biggest chunk!! and still have the nerve to screw you over by charging the lender to give you a higher rate!! ( the lender will pay the broker like $2000. in exchange you get a higher rate)
So.. if you're buying a house don't pay anything upfront but DOOOO tell your broker you want to BUY DOWN your rate.( the lender cant pay the broker anymore!) you pay the lender to give you the lowest rate possible and the seller actually pays it back with his Concession!!! this is the best deal!!
2007-01-10 00:24:50 · answer #4 · answered by RoseB 1 · 0⤊ 2⤋