Use an Oregon Private Money Loan for Quick Financing
In real estate, trends continually shift. Success as an investor depends on the ability to adapt to changing conditions.
One tool that can give sellers an edge, especially in a competitive or slower market, is the strategic use of concessions. Often viewed as a buyer’s advantage—or a seller’s loss—concessions can be a smart way for a seller to encourage a timely and profitable property sale.
Here’s a look at what concessions are, how they work, and how to use them to your benefit as a seller.
What are Concessions?
Concessions are seller-paid costs that help offset a buyer’s expenses. They’re typically negotiated as part of the sale and can take various forms. Concessions are more commonly associated with buyer requests. However, savvy sellers can proactively offer concessions to move a sale over the finish line.
Seller concessions can:
- Address buyer concerns
- Lower or eliminate upfront costs
- Motivate buyer interest in a property
- Serve as a negotiating tool
Common Types of Concessions
Concessions that strengthen a real estate deal may include:
- Closing Costs: Help buyers cover loan origination fees, title insurance, or appraisal costs—expenses that can add up quickly and discourage offers.
- Repair Credits: Offer a credit for repairs identified by an inspection and allow the buyer to handle them after closing to save time and avoid delays.
- Home Warranty: Offer a home warranty to give the buyer peace of mind that major appliances and systems are protected for the first year—a relatively low-cost concession that can add significant value.
- Prepaid Property Taxes or Insurance: Offer to cover some prepaid expenses to make a deal more affordable for the buyer, especially those stretching to afford the home or property.
Pros & Cons for Sellers
Like any negotiation tactic, seller concessions come with trade-offs. Understand the advantages and drawbacks. It can help you determine whether concessions are right for your situation.
Pros: Concessions can promote a faster sale by helping remove financial or logistical hurdles, encouraging buyers to commit, and reducing time on the market. They may allow you to remain firm on listing price or negotiate a higher one. Offering a repair credit can help you avoid costly repairs and simplify the sale by shifting the burden to the buyer.
Cons: Any concession reduces your profit, lowering net proceeds. Concessions may complicate the buyer’s financing. And some loan programs limit the amount of seller concessions. Work with a real estate professional to avoid setbacks.
Offering Seller Concessions
Concessions tend to be more common in a buyer’s market with high inventory and robust competition. But they can also be helpful when:
- Your property needs updates or repairs
- You’re trying to attract first-time buyers with limited cash
- You want to stand out in a crowded market
In a hot seller’s market where listings are often receive multiple offers above asking price, concessions may be unnecessary. Consult with a real estate professional. They can assist in evaluating the market and structuring your offer to maximize appeal without compromising potential ROI.
Prepare Your Property with a Flexible Oregon Hard Money Loan
Prepare your home, rental property, or fix-and-flip for a successful sale with a fast, flexible Oregon private money loan. Our Gregory M. Russell hard money loans are asset-based and can be secured quickly—ideal for time-sensitive upgrades or improvements, essential repairs, or staging costs that boost market appeal and value. We’ll tailor a private money loan that ensures your property is presented at its best for a higher return on investment. Call our team at 1-888-477-0444 today. Or complete our short loan request form, and we’ll respond promptly!