Were the words a client of mine had just said as I presented an offer on their home.
Seller’s have a lot of competition on the market as they list their homes for sale and most are already aware of this, as Realtor’s we do our best in preparing them for what to expect as the offer(s)come in. However, even if prepared when the offer is presented and Seller Concessions have been requested…many Seller’s still will find this a hard pill to swallow.
Unfortunately, Seller Concessions typically have a very negative connotation attached to them when quite the opposite should now be true. In our current market Seller Concessions are often times used by First Time Home Buyer’s as a means to be able to purchase a home. Our First Time Home Buyer’s must prepare to purchase by saving enough money not only to make a down payment but also to take care of associated closing costs and earnest money too. Many are often not aware of the added expense of the earnest money and closing costs as they make contact with their lender (and this is usually where Buyer’s will learn of the option to request seller concessions as a means to purchase their first home).
The Seller Concession is simply a way to help our Buyer’s get into their first home and without it we would definitely lose many. This in no way makes them a “weak” Buyer as they have already met the Lender’s Pre-Approval requirements. What the Seller Concession does, is it allows an opportunity to enable a sale (by rolling approximately 3% of the closing costs into the mortgage) thus getting more homes SOLD.
What should really be most important to our Seller’s is what they will NET from the sale not whether or not concessions have been requested. If the concessions bring the Seller’s NET to below a level the seller is happy with, the good news is…there is always the possibility to negotiate up in price. (The Buyer increases their purchase price to compensate the Seller for the concessions)
We must realize our Seller Concessions allow more Buyers to purchase, turning potential non prospects into strong and able Buyers. This in turn allows the Seller to SELL still achieving the “NET” they are looking for and quite possibly bringing forward a quicker sale with fewer or even no price reductions…and that’s a win/win for both sides!