Seller Consessions: The Sellers Personal Perspective
 
Selling a home isn’t just about setting a price and putting up a “For Sale” sign; it’s about sharing a story that helps potential buyers envision their future within those walls. Often, these stories come to life through what we might call “seller confessions”—insights into the home's history, quirks, renovations, and cherished memories. For buyers, these candid insights can offer a reassuring sense of transparency, helping them feel more connected to the property and confident in their decision. Check the below insight on how you can navigate.
 
For sellers, providing this personal perspective can be a powerful way to highlight the home’s unique features, offering a glimpse into the life that can be built there. But it’s also essential to know how to position this information to maintain appeal and trust while showcasing the best qualities of your property. Let's explore how to approach this delicate balance and turn seller confessions into a meaningful advantage in the selling process.

As a home seller, you have choices when deciding how to market your property, including whether you’d like to offer concessions to attract buyers or close a deal. Here’s what you need to know as you consider whether this approach is right for you:

What are seller concessions and why make them?

A concession is when a seller pays for certain costs associated with purchasing a home for the buyer. Concessions could make your property more attractive to buyers or lead to a better or faster offer. Concessions also help make home ownership more accessible for buyers by reducing upfront expenses, so buyers with limited cash reserves may be able to stretch their budget further.

What are some examples of concessions I can offer?

You have options. Concessions can include covering costs associated with a title search, loan origination, inspection, homeowners’ associations, real estate taxes, or home repairs and updates. They can also be used to cover fees for professionals like agents and appraisers.

How do seller concessions work?

Concessions can be advertised upfront or negotiated as part of a home purchase agreement. In the agreement, a concession is often written as a specific dollar amount. Seller concessions usually aren’t binding until they are put in a contract like a purchase agreement.

What’s the difference between a concession and an offer of compensation?

Concessions can cover a variety of costs or fees for a buyer associated with purchasing a home, whereas an offer of compensation is specifically when the seller or their agent agrees to compensate a buyer’s agent for bringing a buyer who successfully closes the transaction. Read more about offers of compensation.

How do I tell buyers I’m offering concessions?

Concessions can be advertised publicly, shared on a Multiple Listing Service (MLS)—an online platform that compiles home listings from different sources—or discussed during purchase negotiations. Keep in mind that not all MLSs allow concessions to be advertised, and some only allow you to indicate whether you are offering a concession with a simple “yes” or “no.” If you choose to put a concession on an MLS, it must be written as the total sum of all concessions offered and can’t be conditioned on the use of, or payment to, a buyer’s agent.

Is there a limit to the concessions I can offer?

Yes. The limit on the total value of concessions you can offer depends on the terms set by the buyer’s lender and state law. However, any payment you offer toward the buyer’s broker’s fee is excluded from this amount and must be made off-MLS.

How do I know what option is best for me?

When you work with an agent who is a REALTOR®, you are working with a professional guided by ethical duties under the REALTOR® Code of Ethics, including the pledge to protect and promote the interests of their clients. Your agent will work with you to weigh your options, answer questions, and develop a strategy you are confident in. Read more about REALTORS’® duty to put client interests above their own.

Practices may vary based on state and local law. Consult your real estate professional and / or an attorney for details about state law where you are purchasing a home. Please visit facts.realtor for more information and resources.