Seller concessions? What is that?
Seller concessions are the “things” you give up to the buyer. Whether it’s closing costs, a home warranty, or repairs – it means the seller is providing (i.e. paying for) it.
Before we list your home for sale, we are going to sit down and talk. We will talk about what price to list your home at, what items to fix before we hit the market, and a whole lot of other stuff. One of the most important things we need to discuss is the condition of your home and how this can play a part in your home sale. Most seller concessions arise because of home conditions. But, other times it’s just closing cost assistance buyers need. We want to set realistic expectations so that you don’t feel blindsided later on.
The buyers for your house are going to have home inspections done. Same as when you bought your house.
They are hiring a home, termite, and plumbing inspector to tell them everything wrong with the house. That report looks terrifying. (They range from 50 to over 100 pages in length!) Hopefully, they have a good agent who explains that we can’t ask for everything to be repaired.
What concessions will they ask for?
The most common items people are going to ask for are for the AC to be serviced, any roofing issues to be fixed, electrical to be up to code, and foundation work if needed. If there are live termites, they will want that remediated. Is your electrical shoddy? Trust us, they will ask for that repair too.
WHOA! I can’t do all that.
I know. No one wants to do all that. So, what do we do?
If you feel a lean in the house and know you have foundation issues, let’s get a foundation inspection and a quote on how much it will be to fix it. Then you can decide if you should repair it or offer a concession to the next buyer. Another option is pricing your house with this issue factored in.
If your AC is 20 years old, I can promise you that buyers are going to be wary. Let’s get an HVAC company out to service and clean them. They can tell us anything that needs replacing. This can help later on when a buyer has concerns – you can provide a receipt for the recent service call. If the AC is working properly, they should not ask for repairs.
If you know you have a leak – get a roofer out. Get it fixed. If the roof is 25 years old, then we need to price the house accordingly.
What if I don’t want to make the repairs?
Not all buyers ask you to repair it. They may ask for money off in lieu of repairs.
What about closing costs?
Yes, buyers will ask you for closing cost assistance. And this is a common seller concession. This is also not uncommon and you shouldn’t be offended by it.
You don’t have to agree to it. But, you could risk losing a sale if you don’t agree to some of it. (In some price ranges, asking for closing cost assistance is to be expected with every offer.)
Give me the bottom line for seller concessions.
As a seller, you will likely have to give concessions. These concessions could be a home warranty, closing costs, or repairs. Closing a deal with the buyers asking for absolutely nothing is extremely uncommon. Be prepared to give something.
With us as your New Orleans real estate agents, we will weigh out what is important and what isn’t before agreeing to anything and everything. We are here to protect you!
Ready to sell your New Orleans home? Send a message below or text us!