| Posted By |
Message |
dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
|
QOTD...Seller's Concessions? Your thoughts?
RE QOTD...for a friend of mine...
Would you accept an offer with a seller's concession if you:
1) KNEW your home needed work to be updated
2) that work totaled between $15K - 25K
3) the buyer could close in less than 30 days if you accepted their offer.
4) you need to sell with in the next 3-6 months.
ETA:
You are in a desirable SD, Low crime rate, great commuter spot. You are the smallest house on the block. Your house is not the shabbiest, but it is one of the homes that are not as "nice" as the others on your block. This is not your forever home and you know it; your family is outgrowing this home.
The concession would be for $15K. So if the home was listed for $350,000.00, offer is $335K (including a $15K concession the real offer is $320K, and the buyer gets $15K at closing). Would you do it? Assuming that the bank appraises the home for $340K
Thanks for taking the poll 
Message edited 9/16/2008 12:08:30 PM.
|
Posted 9/16/08 11:50 AM  |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Seller's Concessions?
I would accept a seller's concession only if you knew the house would appraise for more than the purchase price.
I don't think any of those reasons you mentioned would be good enough for me.
The house has to appraise for more. Otherwise it won't work.
|
| Posted 9/16/08 11:58 AM |
| |
|
dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
|
Re: Seller's Concessions?
Posted by ave1024
I would accept a seller's concession only if you knew the house would appraise for more than the purchase price.
I don't think any of those reasons you mentioned would be good enough for me.
The house has to appraise for more. Otherwise it won't work.
Edited the OP to reflect that is does appraise for over the purchase price.
|
| Posted 9/16/08 12:02 PM |
| |
|
JMC1014
We got a puppy!!
Member since 5/07 1420 total posts
Name:
J
|
Re: QOTD...Seller's Concessions? Your thoughts?
When we purchased our house (that needed a ton of work) we received a sellers concession of $10K, which pretty much had covered our closing costs and we were then able to put that savings towards the work that we did.
We were also able to mortgage 100% the cost of our home, including the concession. (ex..asking price $399K, offer accepted at $360K and mortage taken was $370 and house had appraised higher then $370k) Hope this made sense!!
|
| Posted 9/16/08 12:28 PM |
| |
|
dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
|
Re: QOTD...Seller's Concessions? Your thoughts?
Posted by JMC1014
When we purchased our house (that needed a ton of work) we received a sellers concession of $10K, which pretty much had covered our closing costs and we were then able to put that savings towards the work that we did.
We were also able to mortgage 100% the cost of our home, including the concession. (ex..asking price $399K, offer accepted at $360K and mortage taken was $370 and house had appraised higher then $370k) Hope this made sense!!
It makes sense. We did the same thing pretty much. 
I wanted to see what % of sellers out there would be open to a concession, considering the market we are in now. Also, what % would pull the house off the market, even if they feel they NEED to sell it, KWIM?
I hope I am making sense.
Message edited 9/16/2008 12:35:31 PM.
|
| Posted 9/16/08 12:34 PM |
| |
|
-Lisa-
---------------
Member since 5/05 6530 total posts
Name:
Lisa
|
Re: QOTD...Seller's Concessions? Your thoughts?
I don't think it should matter to the seller at all, as long as the "real" offer (minus concession) is what they want, the appraisal will cover the concession and the buy pays any additional transfer tax (based on the higher sales price).
Other than those variables, a seller's concession has no effect on the seller.
My only other concern (as a seller) would be that this buyer can't afford the house without the concession, and thus may have a hard time getting a mortgage.
|
| Posted 9/16/08 12:35 PM |
| |
|
dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
|
Re: QOTD...Seller's Concessions? Your thoughts?
Posted by -Lisa-
My only other concern (as a seller) would be that this buyer can't afford the house without the concession, and thus may have a hard time getting a mortgage.
Maybe the buyer is looking to invest and doing a no $$$ down flip.... 
Point is, not all who want a concession are strapped financially, as is the case with my friend.
As long as they are pre-appoved for a mortgage, would it still be a concern for you?
|
| Posted 9/16/08 12:37 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: QOTD...Seller's Concessions? Your thoughts?
Posted by dandr10199
I wanted to see what % of sellers out there would be open to a concession
As a seller I would be open to whatever will get me a check at closing.
The concession is not going to affect your bottom line so I wouldn't worry about it.
If it makes the buyers happy... more power to them.
If the bank balks at this, then they just have to remove the concession and you are back to the point where you would be if you didn't agree to it in the first place. No big deal IMO.
|
| Posted 9/16/08 12:43 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: QOTD...Seller's Concessions? Your thoughts?
Let me also clarify that while I say "whatever will get me a check at closing"... I do expect to be contractually protected by my lawyer.
So I wouldn't agree to things that would put me in a bad negotiating position.
I just don't think the seller's consession is that big of a deal.
It WOULD be a big deal if the buyers wanted a contingency that said the deal is off if the concession isn't approved by the bank. But I don't think many buyers would try to pull a stunt like that. Any decent lawyer would laugh this off.
|
| Posted 9/16/08 12:47 PM |
| |
|
dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
|
Re: QOTD...Seller's Concessions? Your thoughts?
Posted by ave1024
It WOULD be a big deal if the buyers wanted a contingency that said the deal is off if the concession isn't approved by the bank. But I don't think many buyers would try to pull a stunt like that. Any decent lawyer would laugh this off.
I did it when we bought our home and that was in 2005. Maybe it works a small percentage of the time, but it does still happen.
|
| Posted 9/17/08 3:44 PM |
| |
|
Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
|
Re: QOTD...Seller's Concessions? Your thoughts?
My only real concern is that the buyers would be unable to get the mortgage for the higher amount. If that wasn't an issue, then I would probably be okay with it.
|
| Posted 9/17/08 4:41 PM |
| |
|
EJCLJ01
LIF Infant
Member since 8/08 213 total posts
Name:
|
Re: QOTD...Seller's Concessions? Your thoughts?
As a buyer recently, we also asked for the sellers concession.
the seller was reluctant, so the lawyers added amendments to the contract which basically said, if the house does not appraise for the value needed that is not thier problem and we still have to go thru w/ the deal.
In the end we said okay, and the house did appraise for what we needed, even alittle more and we have our concession.
My opinion whatever gets the seller thier money should be okay. How the buyer finances or obtains the money should be irrelevant.
|
| Posted 9/17/08 11:28 PM |
| |
|
