what is a concession in real estate

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In short,concessionsin real estate are incentives like payment for closing costs,necessary repairs,or personal property like furniture that the seller offers the buyer to sweeten the deal and close the sale.

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  • What are buyer concessions in a real estate transaction?

  • What are buyer concessions in real estate? A concession is a benefit or discount offered by the buyer or seller to help sell a home and close a deal. Concessions are usually specified during negotiations and included in closing costs. Examples include covering the costs of new appliances, moving expenses, or repairs to the home.

  • What are the effects of concessions on home sales costs?

  • Effects on Home Sales Costs. A concession means the seller will walk away with a little less cash at closing, and the buyer will not have to come up with as much cash. For example, if you’re purchasing a home for $275,000, if you must put 10 percent down, and if you have $5,000 in closing costs, you’d need $32,500 at closing.

  • How do I ask for concessions when buying a house?

  • If you know you want to ask for concessions, we recommend working with a real estate agent. Your real estate agent can research local sales and tell you about your area housing market. They can also find similar properties that closed with concessions.

  • What does’concession’mean in real estate?

  • What Does Concession Mean in Real Estate? If a seller or landlord is offering concessions, it’s a safe bet that the economy is hurting and he’s desperate to sell or rent his property. Concessions are anything that sweetens the pot in a real estate deal.

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