Don't Let Them Just Dream About Buying Your Home... HELP THEM BUY IT!  There are many reasons why a buyer may need seller concessions to purchase. Low or No Down Payment Debt Ratio Too High No Money for Closing Costs No Money for Repairs or  Desired Upgrades.

Seller Concessions Can Be Your Key to FSBO Success!

Seller Concession Definition: Simply put, a seller concession is when the home seller gives a home buyer any value added benefit as a concession or incentive to purchase their property. Concessions can be... Reduction in price Seller contribution to buyers closing costs Seller provided home warranty Seller credit towards upgrades or repairs Seller pays off some of buyers debt to allow them to debt qualify ( Only allowed with USDA Rural Development loans ) A seller is not allowed to give (or loan) a home buyer any part of a down payment which is required by a lender or loan program! THIS IS CONSIDERED LOAN FRAUD!

So, how can you use these concessions to gain prospective home buyers? Or, better yet, get a signed purchase agreement! First, you must understand that lowering your price will only help you sell to a small segment of the buying market.  People paying cash or who have sufficient cash for down payments and closing expenses will typically seek this concession.  Unfortunately, in todays economy these buyers are the rarity and not the norm.  This type of buyer also knows they are in control because they can purchase virtually any property they wish.  This type of buyer is not real good for your negotiating position! The rest of the home buyers in your market are where concessions will make a difference. Using concessions to help a cash poor home buyer the ability to buy gives you the opportunity to maximize your sales price! Prospective home buyers who lack down payment, cash for closing closing expenses or need to lower their debt ratio in order to purchase are known in the market place as "Dreamers"! A home seller you can use the equity in their home to help this type of buyer achieve their dream. Better yet, you are in the drivers seat when it comes to negotiation! Simply put, price becomes secondary to getting the house at all! The rule is: "The more a seller gives to help a buyer buy, the more money they will generate from their home sale!"  This is where knowing the "real" market value of your property becomes imperative!  If you know your property will appraise at $267,000, you can offer the buyer a $267,000 purchase price with a $5,000 closing cost credit.  Advertising your property this way will attract countless prospective home buyers who otherwise might have felt they needed to save more money before purchasing.  If you know the property will qualify for zero or low down government financing you will want to state this. You cannot leave it to the buyer to do this research! You must be able to inform them of these programs. You must help a homebuyer buy YOUR property! Use the following resources to determine what special loan programs may be available to your buyer: What is a 100% USDA Rural Development Loan? What is a 100% Veterans Administration Loan? What is a 96.5% LTV FHA Loan? Use a Smart Government Loan Officer and Get A FREE Appraisal Compare Bank Rates & Closing Costs to reduce your buyers cash to close requirements! Has your buyers loan been denied? Don't despair, there still may be hope!