Buying
Buying
Understanding Seller Concessions
What are seller concessions when buying a home in El Paso? A seller concession is anything the seller gives the buyer in the deal, most often help covering the buyer's closing costs, which typically run about 3 to 4 percent of the purchase price.
Quick buyer tip on seller concessions. By default we ask the seller to cover a residential home warranty up to $500, and if they agree, that is a concession. The bigger one is closing costs: on a typical El Paso purchase your closing costs might land around $6,000, and you can ask the seller to cover any portion of that. In a strong seller's market those have been rare, but when the market shifts toward buyers, asking sellers to offset closing costs becomes common. Just remember sellers carry their own closing costs too.
Video transcript
Understanding Seller Concessions
Quick buyer tip, what are seller concessions? Seller concessions are any type of give that the seller gives to the buyer. For instance, we by default ask for the seller to pay for a residential home warranty up to $500. Now, if the seller agrees, that's a seller concession.
They're conceding to give you something. Now, other seller concessions might include closing costs for the buyer. Now, we have not seen a seller give a buyer closing costs since COVID, right? That's because we've been in a very strong seller's market.
However, when we return to a buyer's market, then we're going to see buyers asking sellers to give concessions primarily in the form of offsetting their closing costs. Because for a buyer, your closing costs might be 3% to 4% of the purchase price of the home. So $2,000, so you might be looking at about $6,000.
You could ask a seller for any portion of that amount to cover your closing costs. But remember, sellers have their own closing costs as well. But seller concession, anything that a seller gives to a buyer in the process of a transaction.
