peter oprandi
val rico
sloane laswell
paresa alizadeh
danielle ramos
marco
sarah saldivar
zachary freedman
tish guinn
Introduction: Understanding Seller Concessions
In real estate transactions, a seller concession is an agreement where the seller of a property agrees to pay a portion of the closing costs or provide other financial incentives to help facilitate the sale. This concession is not a discount on the property's sale price; instead, it's an arrangement to alleviate some of the financial burdens on the buyer, making the purchase more accessible or appealing.
Seller concessions can cover a variety of costs, including but not limited to:
The rationale behind seller concessions is multifaceted. For sellers, offering concessions can make their property more attractive in competitive markets or expedite the sale process. Concessions can significantly reduce the money required at closing for buyers, particularly those who might be cash-strapped or looking to save on upfront expenses.
However, it's important to note that seller concessions are not freebies; they often involve negotiation and have certain limitations. These limitations can be influenced by factors such as the buyer's loan type, the buyer's down payment, and the property's intended use (e.g., primary residence, second home, investment property). Lenders typically cap seller concessions to prevent the loan amount from exceeding the home's value, ensuring the loan remains secure.
In the following sections, we'll dive into how seller concessions vary across different types of loans, such as Conventional, FHA, VA, and USDA loans, and how factors like down payment percentages and occupancy types affect the allowable concessions.
Conventional Loans
FHA Loans
VA Loans
USDA Loans
Additional Notes
peter oprandi
val rico
sloane laswell
paresa alizadeh
danielle ramos
marco
sarah saldivar
zachary freedman
tish guinn