When you’re buying your first home, all kinds of terms will be thrown around. If you’re a buyer, let’s talk about one that might be appealing to hear: seller concessions.
Seller concessions are when a home buyer (you) asks the home seller (not you) to pay costs on the home buyer’s behalf. These costs could include:
- Title insurance
- Processing fees
- Origination fees
- Inspection fees
- Transfer taxes
- AND MORE!
Now, why in the world would a buyer ask for these concessions, and why would a seller ever be willing to pay them?
For the buyer, the more costs a seller is willing to assume, the more they’ll be able to put down on their new mortgage, allowing them to save money on their payment. There are also real estate tax reasons, but you would definitely want to talk to a tax advisor about those benefits.
For the seller, bringing money for seller concessions is a great way to get their home sold fast. And if the seller already has another home, getting rid of an extra mortgage payment can be motivation enough!
Check out the video here and find out what our experts have to say about when you should or shouldn’t ask for seller concessions!