Seller concession

Dogs playing tug of war - words seller concession, buyer concessionWhat is a seller concession? This refers to anything that the seller gives or grants to the buyer. Sellers are not the only ones who can grant concessions, but right now it’s in the news more due to changes underway in how we sell real estate and the forms and clauses we use to do so.

Concessions are a normal part of negotiation. Most of the time, both sides concede something in the arena of price and terms. In a sense, it’s a bit like tug of war in that both sides want the best price and terms, but most of the time the negotiation is a little give, a little take, unless there are a lot of multiple offers.

Seller concession examples

A good example of a seller concession would be accepting a price less than the list price. The seller concedes the desired price.  A concession can be about money, time, inclusions, or any number of things.

Other home seller concessions might include:

  • accepting an offer with a contingency, or some contingencies
  • home owner agreeing to pay for a home warranty
  • providing a credit to help with the buyer’s closing costs (if there’s a lender involved, there may be limits to that credit)
  • paying the buyer’s agent’s fee as outlined in the buyer representation agreement (there’s a box to check in the contract)
  • allowing a longer close of escrow than typical if the buyer requests it (perhaps to close escrow on their current home)
  • leaving personal property, such as the washer, dryer, and fridge – or patio furniture, a pool table, a TV, etc.
  • permitting a longer than typical timeframe to meet buyer’s needs for contingency removal or depositing money to escrow (we have run into religious reasons for this to be requested)
  • granting access to the home for visits beyond the typical 17 days
  • agreeing to remove a fixture that the buyer does not want
  • making repairs prior to close of escrow (termite work, roof leaks, or anything else that the buyer asks and the sellers agrees to cover)
  • with buyers of homes in common interest developments, sometimes the seller only orders the bare minimum, legally required HOA documents – if the buyer requests newsletters or other non-required items and the seller pays for and provides them, that’s another seller concession
  • the seller could agree to pay points on the borrower’s mortgage – this would also be a seller concession

 

Buyer concessions

Buyers sometimes make concessions, too. Some of the buyer concessions that we’ve seen included these:
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