Southern Maryland Best Buys


Asking for Seller Concession in a Seller’s Market

This is a very timely post about how to handle closing costs needed by a Buyer in a Brisk Seller's Market. It can simply be added to the price as long as it appraises. So cash may still WIN the  day if the Seller or Agent is concerned it may not appraise.

Asking for Seller Concession in a Seller’s Market

Housing QuestionsSeller Concession is when the Buyer is asking for the Seller to pay all or part of their closing costs mostly associated with their mortgage. When a Buyer asks for a Seller Concession, it does not mean they do not have the Cash but simply means they(Buyers) don’t want to use the cash they have towards their closing costs. There are different ways to ask for the seller to pay part or all of the Buyer’s closing costs. How about asking for Seller concession in a Seller’s market?

In certain areas of Central Florida, listings receive multiple offers within the first couple of days of being on the market. If you are a Buyer putting an offer on a house in an area where there’s low inventory and high demand, it is a Seller’s Market and you have to keep in mind that you might be in a multiple offer situation.

For example, if the list price is $170,000 and you HAVE to ask for seller concession in the amount of $10,000, you might think about offering $190,000 including $10,000 towards Buyer’s closing costs. Your offer is over the list price by $20,000, however, $10,000 of that is to pay for your closing costs and Seller will still get $10,000 over the asking price. This is of course if you really want the house!
Offering below list price and asking for Seller concession will most likely result in “rejection of your offer”.
Prior to writing the offer, your Realtor should analyze the data of Active/Pending and Sold comps in the area including days on market, list price/sale price ratio, number of Cash transactions vs financing.

Asking for Seller concession in a Seller’s market may not be to Buyer’s favor. I’ve had two buyer’s within the past month who were told by their lender to ask for seller concession and it is very common. One lender is in GA, the other is in MA, both buyers are purchasing a home in FL. Real Estate market is not the same in all states, it is indeed local! It would be best to speak with a local Realtor to find out market conditions before making any assumptions towards seller concessions, especially if most closed transactions were Cash.

If you’re looking to buy or sell a home in Clermont, Minneola, Winter Garden areas, I would love the opportunity to speak with you. You could call me at 407-929-1852, email or visit my website at


Where to live in Orlando


Beth Atalay, Broker/Owner

Cam Realty and Property Management

Your Orlando Agent - Where to Live in Orlando


CAM Realty


You'll "Retrieve Golden Results" with Cheryl Ritchie, RE/MAX Leading Edge, for all your Southern Maryland and Anne Arundel County Real Estate Services.
OR Call/Text Cheryl at Cell 301-970-7566 OR EMail for the Golden Results YOU Deserve.
Visit my Digital Business Card at

Or Visit my "Golden Results" Social Networking Sites

RSS Feed
Comment balloon 2 commentsCheryl Ritchie • May 19 2013 09:23PM


Cheryl:  Beth mentioned that two lenders... one for GA and one from MA were suggesting to the buyer to ask for Seller Concessions.  How did this buyer end up with out of state lenders?  Although I do not "control" my buyers... I will do everything in my power to persuade them to NOT use an out of state, or "online" lender.  It usually works.

We, my buyers and I, need a lender who not only knows the local market, but one who wants continued business with me, and will therefore make sure they work to please my buyer.  That can rarely be possible with online and out of state lenders.

With that in mind... I cannot remember the last time my buyers used a lender like those you mentioned.

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) about 7 years ago

Also:  There is another way to free-up cash for buyer's closing costs, and that is to "buy up" the interest rate.  Just as a buyer can pay extra points to get a lower rate (which I do not recommend)... they can also ask for a slightly higher rate which will give them a credit FROM the lender... which can be used to pay, or off-set closing costs.  That works quite well, but most agents do not know it is possible.

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) about 7 years ago