Seller Concessions?
Can anyone tell me about seller concessions? It’s been recommended… am pining for a particular house, seller wont budge below a certain #, it needs a ton of work. Other ideas? TIA.
Can anyone tell me about seller concessions? It’s been recommended… am pining for a particular house, seller wont budge below a certain #, it needs a ton of work. Other ideas? TIA.
I was in the same boat. I had to walk away. The place is not in contract yet but others are interested. At the end of the day, there is a tight market out there. I think you just have to be hopeful that another great house will come along and you will love it just as much. Do not over extend yourself because every day that you go in that house you will remember that you did that, and you will not be happy.
I can’t think of anything to add to Johnny and Slopefarm’s excellent comments. Be clear and knowledgeable about your position and perhaps in time the sellers will come around to you. Or perhaps they will find a higher bidder and you’ll have to continue your search. Or perhaps that higher bidder will not close and the seller will eventually come back to you.
Alas, don’t pin all your hopes on one home. There’ll be other fish in the sea.
“Walking away doesn’t get me the house I want.”
Overpaying may not let you keep it. In this bear market with this shadow inventory, there’s always, ALWAYS, a better selection/deal in the future.
I’ve been shopping on and off since 2004 and any property that I’ve regretted not signing for, eventually got filed under “no regrets” as similar or better opportunities came my way.
***Bid half off peak comps***
A good starting point in any negotiation is realizing up front it may not work out in the end. Seriously, it takes the emotion out of the process (and buying a home is very much an emotional as well as a financial investment).
House hunting often involves at least one heartbreaker that never got done. But as friends have often counseled me, just as often that means there is something better down the road you may not have even found yet.
Doesn’t help you so much in your current negotiations, but I do think you need to get in a frame of mind that you are prepared to walk if you don’t get what you want.
seller won’t budge and you won’t walk away because you want the house but only at a lower price.
Sounds like someone has a sense of entitlement. You either meet him where he wants to meet or you walk away.
One other option…get his broker to reduce his commission. Good luck with that!!!!
this is a great primer on negotiating:
http://theapplepeeled.com/buyers/maximize-your-negotiations-efforts-what-does-discipline-look-like/
I just watched a friend do a very disciplined negotiation (instinctually following rules listed above) for a house that ended in the seller coming down $60k from what he wanted.
The only thing that gets you the house you want is you and seller agreeing on price.
I think of the term “concession” as involving a reduction in price after contract, basically at closing. You walk through two days before closing and find out the w/d doesn’t work, or someone stole the mantle, or there’s new water damage, etc. That’s different from a negotiation going into the contract. Any problem you see now isn’t properly the subject of a concession at closing, but is the basis for negotiation now.
Just how far apart are you? How well-supported is your negotiating position by recent comps? Have you walked through with a contractor and have a rough idea of your reno costs?
Be (or pretend to be) respectful of seller’s position and put onus on yourselves. Talk to broker. Their job to facilitate and investigate any wiggle room.
“We feel we’re offering a fair price, given our budget and the estimates we’ve got for doing the work that needs to be done. But we’re not in a position to increase our offer. If the seller wants to reconsider at any time, please let us know. We love the house.”
Thanks, hh. Walking away doesn’t get me the house I want.