| During the last few years before the market started | | | | where the inventory is high; however, seller |
| to turn downward, it was virtually a guarantee that | | | | concessions are becoming far more common. |
| you would be able to sell your home if you put it on | | | | Basically, a seller concession is anything that a |
| the market. In fact, there were many markets that | | | | property owner uses to curry favor with buyers. The |
| were a virtual hot bed of activity, with bidding wars | | | | range of possible seller concessions varies quite a bit. |
| inciting prices well above the asking price. The low | | | | For example, you might provide a decorating |
| interest rates at the time were all the | | | | allowance if your carpet is outdated or even provide |
| encouragement buyers needed to start snatching | | | | a contribution toward closing costs in order to |
| properties at a historic rate. As a result, numerous | | | | encourage first-time home buyers to consider your |
| investors were able to double the investment they | | | | property. |
| had made in short period of time. | | | | In the past these types of concessions were not |
| As many predicted would happen; however, the real | | | | usually offered until buyers and sellers were in the |
| estate bubble did indeed burst and many are | | | | process of negotiating. In most cases, such |
| predicting that the market of 2008 will make the | | | | concessions would not even be offered until |
| preceding two years seem like a cakewalk. Once hot | | | | something turned up in the inspection. That does not |
| markets have declined rather rapidly, leaving investors | | | | mean that they cannot be offered during marketing; |
| and homeowners alike wondering what they can do | | | | however, in order to attract prospective buyers. |
| to sell their properties as loan underwriting guidelines | | | | The key is to recognize that the balance of power |
| tighten and the market floods with inventory. | | | | has definitely shifted. Buyers hold the upper hand |
| If you find that you absolutely cannot wait until the | | | | right now and sellers must be prepared to do what |
| market turns around to sell your property and must | | | | they can to attract them. If you have already taken |
| sell it now, your best hope may be creative | | | | certain steps to move your property such as pricing |
| marketing tactics. | | | | it aggressively then you may wish to consider making |
| The first thing that must be understood about the | | | | some concessions to increase the interest of buyers. |
| current market is the fact that the market is rife | | | | One option would be to pay points for the buyer. |
| with choices. A few years ago buyers felt a decided | | | | This is actually a situation that provides a win for |
| pressure to move and move quickly when searching | | | | both buyers and sellers. Let us say you have a |
| for a property. Choices were few and the best | | | | property listed at $150,000. If you slashed the price |
| properties were likely to be snatched up as soon as | | | | 3% then you would be taking $4,500 off the price. |
| they hit the market. Today that is not the case. | | | | You could use that same amount of money; |
| There are far many more properties on the market, | | | | however, to purchase mortgage points for the |
| prices are lower and buyers know they have the | | | | buyers. In fact, you might even find that you can |
| advantage of being able to take their time looking. | | | | purchase a substantial amount of points for a bit less |
| This means if you are going to be competitive in | | | | money. This strategy would allow buyers to obtain a |
| selling your property, you will need come up with | | | | much lower interest rate and as a result a far lower |
| something that will set your property apart and | | | | monthly payment. This would make your home more |
| entice buyers. | | | | affordable than similar homes in the neighborhood and |
| In the last few years before the market crashed, | | | | may just provide the incentive buyers need to |
| sellers had no need to use seller concessions. In areas | | | | snatch up your home. |