Seller Concessions

Seller concessions can be used as a negotiating tool for both buyers and sellers.  The main use for them is to allow a buyer to roll their closing costs into their mortgage.  This decreases the amount of cash a buyer needs at closing.

For Example:  A home is listed at $250,000.  The sellers have a target price of $245,000.  The buyers are approved for up to $255,000 but do not have the cash to put down 3.5% plus closing costs on a property of that amount.

The buyers can offer the sellers a purchase price fo $255,000 with $10,000 in seller concessions. This still gets the sellers their target price of $245,000 and the additional $10,000 will go as cash from the seller, directly to the closing costs of the buyer, drastically reducing the amount of money needed at closing by the buyer.

Closing costs even on a 0% down VA loan can cost up to $13,000.

For a list of estimated closing costs, click HERE.

Wheres the catch?  Good question.  

There are limits on the amount of concessions are allowed depending on the structure of your loan.

• Va Loan	Unlimited
  FHA Loan	6% of the sales price
  Conventional	3% if down payment is less than 10%
  	6% is down payment is 10%
  	9% if down payment is 25% or more

•  
• The property needs to appraise for the requested purchase price amount. The bank will not lend more money than the property is worth. You can only receive the concessions as long as the appraised value supports it.
• This increases the risk of your offer to a seller.  Some sellers can't wrap their heads around paying for someone elses closing costs, even if it doesn't effect their bottom line.  It also makes the risk of have an appraisal problem that much higher.  Many sellers don't want to risk having a problem that far down the line.

If you are going to make an offer and ask for seller concessions, make sure that the purchase price has a good chance being supported by the appraisal and be prepared to make a strong offer.  With the additional risk to the seller, there will need to be a reward for them. Don't get greedy, it's not everyday when you can have other people pay for your closing costs. 

1601 Long Beach Boulevard, Long Beach Township, NJ, 08008, Unit B

• Sold: $1,061,950
• List: $1,099,000
• Square Feet: 2,360
• Long Beach Township

• Beds: 4
• Baths: 3.1
• residential - condo
• Represented: Seller

22 W Tebco Ter, Long Beach Township, NJ, 08008

• Sold: $448,650
• List: $448,650
• Square Feet: 1,440
• Long Beach Township

• Beds: 3
• Baths: 2
• residential - single

22 Virginia AVENUE, Long Beach Township, Ne, 08008

• Sold: $1,330,000
• List: $1,330,000
• Square Feet: 3,100
• Long Beach Township

• Beds: 5
• Baths: 4.1
• residential - single

1903 Bay Terrace, Long Beach Township, NJ, 08008

• Sold: $875,000
• List: $899,000
• Square Feet: 2,240
• Acres: 0.1
• Long Beach Township

• Beds: 4
• Baths: 3.1
• residential - single

204 S Atlantic Ave unit 202, Beach Haven, NJ, 08008

• Sold: $190,000
• List: $199,900
• Square Feet: 439
• Beach Haven

• Beds: 1
• Baths: 1
• residential - condo

304 W 17th St, Ship Bottom, NJ, 08008

• Sold: $349,900
• List: $349,900
• Square Feet: 1,152
• Ship Bottom

• multi - multiple

4 W. Maryland, Long Beach Township, NJ, 08008

• Sold: $227,500
• List: $249,900
• Square Feet: 865
• Long Beach Township

• Beds: 3
• Baths: 1
• residential - condo

102 Atlantis Ave, Stafford Township, NJ, 08050

• Sold: $269,000
• List: $269,000
• Square Feet: 1,996
• Stafford Township

• Beds: 3
• Baths: 2
• residential - single

23 Maplewood Dr, Little Egg Harbor, NJ, 08087

• Sold: $244,000
• List: $249,900
• Square Feet: 1,550
• Little Egg Harbor

• Beds: 2
• Baths: 2
• residential - single

116 Bark Rd, Stafford Township, NJ, 08050

• Sold: $259,850
• List: $259,850
• Square Feet: 2,117
• Stafford Township

• Beds: 4
• Baths: 3
• residential - single

204 S Atlantic Ave unit 103, Beach Haven, NJ, 08008

• Sold: $209,000
• List: $209,000
• Square Feet: 421
• Beach Haven

• Beds: 1
• Baths: 1
• residential - condo

204 S Atlantic Ave unit 300, Beach Haven, NJ, 08008

• Sold: $403,000
• List: $359,000
• Square Feet: 960
• Beach Haven

• Beds: 3
• Baths: 2
• residential - condo

195 John St, Eagleswood, NJ, 08092

• Sold: $154,000
• List: $159,500
• Square Feet: 855
• Acres: 0.3
• Eagleswood

• Beds: 2
• Baths: 1
• residential - single

4412 Gloucester Dr, Long Beach Township, NJ, 08008

• Sold: $1,575,000
• List: $1,729,000
• Square Feet: 2,042
• Long Beach Township

• Beds: 4
• Baths: 2.1
• residential - single

204 S Atlantic Ave unit 104, Beach Haven, NJ, 08008

• Sold: $195,000
• List: $199,000
• Square Feet: 492
• Beach Haven

• Beds: 1
• Baths: 2
• residential - condo

204 S Atlantic Ave unit 203, Beach Haven, NJ, 08008

• Sold: $205,000
• List: $189,000
• Square Feet: 548
• Beach Haven

• Beds: 1
• Baths: 2
• residential - condo

204 S Atlantic Ave unit 102, Beach Haven, NJ, 08008

• Sold: $299,000
• List: $299,000
• Square Feet: 816
• Beach Haven

• Beds: 2
• Baths: 2
• residential - condo

113 Roxie Ave, Long Beach Township, NJ, 08008

• Sold: $1,860,000
• List: $2,000,000
• Square Feet: 2,900
• Long Beach Township

• Beds: 5
• Baths: 3
• residential - single

224 Yeoman Rd, Stafford Township, NJ, 08050

• Sold: $355,000
• List: $359,900
• Square Feet: 2,951
• Stafford Township

• Beds: 4
• Baths: 3.1
• residential - single