3 Seller Concessions That Could Make Buying a House Worth It

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These perks may be too good to pass up. 

For several years, sellers had a clear upper hand in the housing market. Not only did they not have to make many concessions to lure in buyers, but some didn’t even have to so much as fix glaring issues with their homes before completing a sale.

But today’s housing market looks different. While buyer demand is still solid, it’s not nearly as strong as it was in 2021, when prospective homeowners were eager to capitalize on low mortgage rates.

That means that sellers today may need to take extra steps to lure in buyers. And they often do that by making different concessions. Here are a few such concessions it pays to jump on.

1. Credits to cover closing costs and repairs

Closing costs typically amount to 2% to 5% of a mortgage loan. And so they can be very expensive, depending on the amount being borrowed. Some sellers, however, may be willing to cover buyers’ closing costs, which could result in a world of savings. So that’s the type of offer to potentially jump on.

Similarly, sellers today may be willing to offer more money to cover home repairs. If a seller offers up a $15,000, $20,000, or $25,000 credit, it could be enough to pay for every single issue related to a given home — major or minor. That’s a pretty good deal.

2. Warranties on appliances

Buying a home means taking the risk that a number of key appliances will fail shortly after a purchase. Household appliances can be expensive to fix and replace. But getting a warranty on appliances means that’s one less expense for new buyers to worry about.

3. Mortgage rate buydowns

A big reason so many buyers have pulled out of the real estate market is that it’s gotten very expensive to take out a mortgage. Some sellers, however, may be willing to help ease the sting of higher mortgage costs by paying for a temporary reduction in buyers’ borrowing rates.

Mortgage rate buydowns can take on different forms, but in a nutshell, a seller is paying a sum of money to temporarily reduce the rate on a home loan, making it less expensive for the buyer at hand. A seller might, for example, pay to have a buyer’s mortgage rate reduced by 2% for the first year they’re in their new home.

It never hurts to ask for concessions

Sellers today are increasingly realizing that buyers need incentives to purchase homes. But not every seller is going to offer up concessions from the start.

If you’re serious about buying a home, don’t hesitate to ask for some of the above perks. You never know when a seller might agree, and that could make the prospect of homeownership a lot more affordable for you.

Imagine, for example, that you’re able to lock in a mortgage at 6.7%, but your seller is willing to pay to knock your rate down to 4.7% for a year or two. That’s huge. A rate of 4.7% isn’t so outrageous, and by the time that buydown period is over, you might be in a position to refinance your mortgage.

All told, buyers finally have more negotiating power thanks to the state of the housing market. That’s something you may be able to use to your advantage.

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