Home Selling in 22206>Question Details

rculver123, Home Buyer in Pensacola, FL

sellers concessions

Asked by rculver123, Pensacola, FL Thu Mar 22, 2012

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AJ Heidmann’s answer

I agree with Delaine that your agent should be helping you with this, but remember the old saying "A bird in the hand is worth 2 in the bush". Assuming the rest of the offer is strong and likely to go to settlement, you have to ask yourself if you are willing to risk getting to settlemnt for the roughly 2% difference.

As for concessions, unless you get a bidding war in the first week on the market, they are a pretty standard in my experience in 22206.

Best of luck!
Web Reference: http://www.AJHeidmann.com
0 votes Thank Flag Link Fri Mar 23, 2012
Hi R Culver!
It depends on what the market is doing in your location and also the price of your condo. Is the condo priced at or above market? How is it priced compared to the assessed value? 3 weeks is not that long. But it's your choice to sell it now or try to hold out for more and risk not getting another offer for who knows how long. Your Realtor should be advising you on this anyway. And you can look at the comps to see how much other units have sold for, etc. In my area concessions are 'normal" as long as they are reasonable.
0 votes Thank Flag Link Fri Mar 23, 2012
I've received an offer for my condo plus a a request for reduction in price. Together they represent 4% of the sales price. My unit has been updated, with a complete makeover of the kitchen, bathrooms are updated, although no extensive renovations. It shows well. It has only been on the market about 3 weeks. I was surprised that the buyer would think he could get such concessions at this stage in the game. I have countered with an offer at half of the request. Waiting to see what happens. My question is: are concessions necessary and are they here to stay?
0 votes Thank Flag Link Thu Mar 22, 2012
And the question is?????????????????????
0 votes Thank Flag Link Thu Mar 22, 2012

It appears that any question you might have intended to be included didn't come through in your post. In general, the 22206 area has under 2 months of available inventory, so the market is skewed to a sellers market. Well renovated units are generally providing minimal seller subsidies if any, within the first 7-10 days on the market. With units that haven't been updated or are initially overpriced, you can see subsidies upto about 3%, depending on how you structure the offer.

If this doesn't cover, please give a specific question and I'll do my best to help you with it.

AJ Heidmann
McEnearney Associates, Inc.
Licensed in Virginia
Web Reference: http://www.AJHeidmann.com
0 votes Thank Flag Link Thu Mar 22, 2012
A seller can often provide a "Seller Subsidy" or "Closing Cost Assistance" to a buyer to assist with the fees associated with a closing, like Settlement agent/attorney fees, etc...

The typical seller subsidy is no greater than 3% of the purchase price. But you can easily confirm with your lender the amount and type of seller subsidy that is allowed for your loan and transaction.

Seller subsidies can be a great option so that buyers can come to the table with only having to pay as little as their down payment.

Best of you luck on your contract and closing!
0 votes Thank Flag Link Thu Mar 22, 2012
please elaborate so we can make sure to answer correctly!
0 votes Thank Flag Link Thu Mar 22, 2012

I am not sure quite what you mean by asking Sellers Concessions? They can be allowed depending on your loan type, and they are found in contracts today. If you provide more details, we can answer better.


0 votes Thank Flag Link Thu Mar 22, 2012
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