Should You Offer Financial Concessions when Selling?

When selling your home, at some point the question of financialconcessions will arise. These may be credits for closing costs, repairs, orupgrades and these incentives may improve your ability to sell the home,especially if the home is not in turn-key condition. Yet these do reduce theprofit from your sale, so before you make the decision, consider youroptions. First, understand the current market. In a buyer’s market, where supplyexceeds demand, adding financial concessions can make your home moreappealing to the limited buyer pool. Conversely, if you are in a seller’smarket, making extra concessions may not be necessary to attract buyers.Second, consider the condition of your home and how it compares to otherproperties on the market. If you know that you need repairs or updates thatmay deter buyers, then offering additional funds up front may make yourhome more appealing. Often, buyers have upgrades and changes in mindalready and these funds may encourage them to choose your listing overthe competition. Finally, understand your timeline and goals. If you want to move quickly andhave the equity to do so, an aggressive financial concession may allow youto sell more quickly. Making concessions is a strategic tool you and youragent should discuss. In a slow market, it may mean the differencebetween selling quickly or lingering on the market. Understanding theimpact of concessions allows you to maximize your chances of asuccessful sale.