Seller Concessions Explained- Southeast Michigan Real Estate
This is my attempt at a very simplified explanation of what seller concessions are.
Example: You want to buy the house you just looked at and want to make an offer of $200,000. You need $5000 in seller concessions (seller paying all or part of your closing costs). Your offer will be $205,000 asking the seller to pay $5000 in concessions. If you offer $200K and ask for $5K in concessions, your offer is really $195,000.
The seller isn’t really paying your closing costs- you are mortgaging them.
Sellers- you really aren’t paying those closing costs. The buyer is mortgaging them.
Buyers- sellers have a bottom line. They don’t tend to come down to that bottom line AND pay concessions. The concessions are rolled into the purchase price.
Sellers– don’t question the amount of the concessions. If the buyer’s loan officer is over charging them that is their business. You only need to be concerned about your bottom line.
Compliments of Jackie Hawley, Realtor
Coldwell Banker Professionals
Cell: (248)736-6407
www.SearchMichiganMLSListings.com
Southeast Michigan Real Estate 