It’s a question that many first time home buyer and first time home seller have. But what exactly are they? Does it have something to do with a concession stand? When it comes to real estate we aren’t talking about selling hot dogs and hamburgers…we are talking money!
The best way to describe seller concessions is a way for the buyer to pay for closing costs without having to use the money they have in their “pocket.” For example: If the buyer and seller agree on a selling price $100,000 and the estimated closing costs will be 4% the buyer can ask for that to be added on in the form of seller’s concessions, making the price $104,000. The seller would the “pay” $4,000 to closing costs for the buyer.
There are many different factors when it comes to seller’s concessions such as loan to value and the appraisal. We do recommend that you speak with your Nothnagle real estate agent or one of our mortgage partners if you have questions.