Sunday, April 27, 2014

Seller Concessions : Is it Bad to Demand ?

Closing Cost Covered

Seller's Point of View:

Last February, we listed our house in Real Estate market. After de-cluttering and staging done, we took the time in discussing with our listing agent about the comparable price in our neighborhood. We compare and look at the sq footage of the house, size of the garage, location of the property, condition of the property, number of bedrooms and bathrooms and so on. After the discussion, we set the price. Our listing agent has helped us come up with a reasonable price of the property.
We also discussed that we wanted the full price as much as possible. Seller concessions are negotiable. Our thoughts were, the lesser demands from the buyer most likely the favorable offer.
Four days passed, we have three offers. One offer asked for full closing cost covered by the seller, our response was flat NO and we didn't bother to counter their offer because we have multiple offers on the table.
The second offer has a lowball offer and asked for 30% closing cost and the closing date was in two weeks. Tempting. We end up saying NO because the buyer asks for an X amount of Home Warranty too and an X amount of home repair. If the buyer was a cash buyer, we could counter offer but, he was not. Dealing with mortgage folks can be dragging.
We accepted the full priced offer with no seller concessions. Their only request was 60 days closing. We were not in a hurry so; the offer was good enough.

Buyer's Point of View:

We were looking for a new property to buy since the house was sold. We found a great property in a beautiful neighborhood, and the price of the property was at the max of our budget. Asking for seller concessions left us with no option knowing that there are 6 offers on their table already. We offer full price, cash offer and closing date in 30 days.

After one day, our realtor asked if we want to go a higher bid. We said NO. As a buyer, we should know the max amount that we can afford to pay. Was our offer good enough? We don't know. We were in limbo.

After two days, our realtor congratulate us. We got the house.

Is it bad to demand a seller concession? It could be Yes and No. It all depends. Is your demand reasonable? How many offers on the seller's table? If there's a multiple offer, asking for seller concession is risky but, you can try. Make a strong offer that the seller will favor you from others. Good luck!

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