"Concessions aren't a sign of desperation, said Deborah Morton, managing partner of The Agency Atlanta, who says concessions are common in her region. They're a sign that you know how to get deals done. The most successful agents and sellers are using them smartly, tailoring each deal to fit buyers' needs while protecting sellers' bottom line. That's what it takes to win right now."
"She shared the story of a recent creative concession involving a rent-to-own scenario on a property that had seen multiple price cuts. My buyer could immediately begin renting the property on (online marketplace Vacation Rentals By Owner) during the peak vacation season even before closing, says Cameron. While making a modest rental payment to the seller in the interim, he's now positioned to generate nearly double in rental income, offsetting his costs and maximizing cash flow while we finalize loan assumption."
"High-cost home insurance especially in areas prone to wildfire has become another factor in spurring creative concessions. Michelle Schwartz, managing partner and founding agent of The Agency, said a recent seller offered to cover a buyer's first year of insurance premiums. Some sellers are offering multi-year home warranties instead of standard one-year coverage, with some warranties even including pool, spa equipment, HVAC systems, electrical repairs and roof repairs."
Concessions function as strategic tools that facilitate transactions without signaling seller weakness. Agents and sellers tailor incentives to buyer needs while preserving seller financial outcomes. High interest rates prompt sellers to market homes with assumable loans or offer mortgage rate buydowns to lower monthly payments. Rent-to-own arrangements can allow buyers to rent during peak season before closing, generating rental income that offsets costs and enables loan assumption. Elevated home insurance costs drive sellers to cover first-year premiums or provide multi-year warranties covering pools, spas, HVAC, electrical systems, and roofs. These concessions often replace price reductions and help move stagnant listings toward closing.
Read at www.housingwire.com
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