Should I Ask for Seller Concessions?

When buying a home in today’s market (at least in those areas where the market favors buyers, not sellers), it is not unusual for buyer’s to wonder if they should ask for seller concessions.

And sellers will often consider offering them as well.

Is this something to ask for?

• First, you should find out from your agent if the seller is offering anything up front. It may be common in your competitive market and if so these terms will be listed in the MLS listing (e.g., seller is offering a credit of $XXX for carpet, or paint).
• Second, are concessions fairly common in your marketplace. This does not mean you can’t ask if they aren’t, but it is easier if it is commonplace. And sellers might not be taken by surprise.
• Third, consider the advantages and disadvantages of asking for any concessions and what those concessions might be.
  • It is common for buyers to ask that some of the closing costs be paid for by the seller. And some sellers might be willing to pay a fee toward the loan to paydown the mortgage rate (e.g., the points). Does it financially make sense for you to have these concessions or not?
  • Further, you must consider whether asking for concessions will make your offer less desirable or even unacceptable to the seller. If you make a good offer, accepting concessions will be easier for the seller, depending on their financial circumsances.