See what concessions buyers are seeking as the market shifts away from a seller’s market.

Multiple offers for nearly every house, many of them over asking price, are fewer these days as we move away from a seller’s market. This shift has more buyers asking for concessions. Here are ways buyers are leveraging deals to make their housing dollars go further.

Asking for repairs

The market frenzy that led many homebuyers to waive home inspections has passed. In addition to taking time for home inspections, some buyers feel confident enough to ask sellers to make repairs or cover the cost of making fixes.

Credits for closing costs

With closing costs that total 2% to 5% of the purchase price, some buyers request the seller’s help with closing costs in the form of a credit.

Examples of closing costs buyers might ask sellers to cover are buying down the mortgage rate, processing fees, title insurance, property taxes or HOA dues for a year.

When and how to ask for concessions

Asking for concessions doesn’t mean a seller will agree. It all depends on the seller’s motivation—and this depends on factors like how long the home has been on the market, if the home is overpriced or if the seller has compelling personal reasons that require a quick move.

When asking for concessions, be courteous. Be strategic. If your goal is a lower payment, seek a credit on the purchase price. If your goal is to reduce the amount of cash you need to bring to the closing table, request help with up-front fees for things like inspections and loan origination fees.

Negotiate in good faith with the goal of coming to an agreement with the seller. Be prepared to compromise or have your request turned down. A real estate agent can help you navigate the sale and decide whether asking for concession is a good move.

Ready to buy?

Consumers home loans come in a variety of forms to meet buyers’ needs. Talk to one of our Mortgage Loan Officers to see which is right for you.

 

All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, and collateral conditions.