Should You Offer Financial Concessions when Selling?

When selling your home, at some point the question of financial concessions will arise. These may be credits for closing costs, repairs, or upgrades and these incentives may improve your ability to sell the home, especially if the home is not in turn-key condition. Yet these do reduce the profit from your sale, so before you make the decision, consider your options.

First, understand the current market. In a buyer’s market, where supply exceeds demand, adding financial concessions can make your home more appealing to the limited buyer pool. Conversely, if you are in a seller’s market, making extra concessions may not be necessary to attract buyers.

Second, consider the condition of your home and how it compares to other properties on the market. If you know that you need repairs or updates that may deter buyers, then offering additional funds up front may make your home more appealing. Often, buyers have upgrades and changes in mind already and these funds may encourage them to choose your listing over the competition.

Finally, understand your timeline and goals. If you want to move quickly and have the equity to do so, an aggressive financial concession may allow you to sell more quickly. Making concessions is a strategic tool you and your agent should discuss. In a slow market, it may mean the difference between selling quickly or lingering on the market. Understanding the impact of concessions allows you to maximize your chances of a successful sale.