Seller Concessions: A Smart Strategy To Get Your House Sold

For the past few years, it’s been mostly a seller’s market. But dynamics are shifting as the number of homes for sale grows. And that means that the market is balancing out a bit. As a result, some sellers are finding they need to be more flexible to close a deal. One strategy that can help? Offering concessions. As the National Association of Realtors (NAR) explains: “As home inventory begins to grow and buyers regain some advantage in the market, sellers may consider offering more in negotiations to make the deal more attractive and get to the closing table.” What Are Seller Concessions?  Concessions are homebuying costs that a seller agrees to cover as a way to get their house sold. And based on data from the National Association of Realtors (NAR), nearly 1 out of every 4 sellers (24%) offered a concession in 2024. Here are a few of the most common types of concessions: Covering Closing Costs: The seller pays for part (or all) of the buyer’s closing costs, like appraisal fees, title insurance, or loan fees.  Price Adjustments: Instead of making repairs, a seller might lower the purchase price to make up for updates the buyer will need to tackle.  Adding a Home Warranty: A seller may throw in a home warranty, giving the buyer peace of mind key repairs will be covered in the first year.  And don’t worry. This doesn’t mean you have to come up with more cash to make it happen. These are things that get subtracted from your profits at closing – not more funds you have to bring to the table.  And not all concessions are about money. There are other extras you could throw in. Like, if your buyer is coming from an apartment and has never had a yard before, they may ask if you’d be willing to leave your lawn mower behind. That’s another lever you could pull to keep them happy. How Concessions Help Sellers  Offering concessions can be a smart strategy for sellers to get a deal done. As Dennis Shirshikov, Professor of Finance and Economics, City University of New York/Queens College told The Mortgage Reports: "Pricing homes realistically and being willing to offer concessions, such as covering a portion of closing costs or including upgrades, will be key to closing deals . . . in a less frenzied market.” For example, let’s say you accepted an offer from a buyer, but after their inspection, you found out there are some repairs they want you to tackle before you hand over the keys. Rather than starting at square one and searching for a new buyer, you could offer a concession. One option is you can take on the repairs and cover the costs yourself. But, if you really don’t want the hassle of dealing with contractors, you could reduce your price by however much repairs would cost. Alternatively, you could offer to pay a portion of your buyer’s closing expenses with the idea they’d use the money they saved at closing toward doing the repairs themselves. Either way, a concession can be a great way to meet in the middle. However, it’s important to have an agent on your side to help with these negotiations. A good real estate agent can help you decide when and how to offer concessions, so you don’t give away too much while still ensuring your house gets sold. It’s all about finding the right balance.  Bottom Line With the market becoming more balanced, seller concessions are coming back into play in some areas. The key is having an agent to help guide you through the process, so things work out in your favor. That’s where I come in. What’s a concession you’d consider to move things along?

View more

The Return to Urban Living — Why More People Are Moving Back to Cities

After years of suburban and rural migration during the pandemic, cities have been making a comeback in the past couple of years. According to the National Association of Realtors (NAR), the percentage of people moving to cities has risen to 16%. While that may not sound like a big number to you, it is the highest level in a decade – and that’s a big deal (see graph below): And data from BrightMLS seems to confirm this trend. In a recent survey, 1 in 5 (20.6%) people looking to buy say they want to live in the city. So, what’s behind this ongoing shift back to urban living? Let’s break down the top three reasons why people are trading quiet suburbs for bustling cityscapes. You may find out you want to sell your house with a big yard and move to an urban oasis, too. 1. Vibrant Culture Cities have always been hubs of culture, entertainment, and community. They’re packed with energy and there are always endless things to do. During the pandemic, a lot of that excitement was put on pause. But the last couple of years? Cities are buzzing again. There’s nothing quite like being able to walk to your favorite coffee shop, pop into a local gallery, see a live concert or show, or grab a last-minute dinner at a great spot down the street. It’s a lifestyle that’s easy to love — and one a lot of people want today. 2. Being Close to Work Remote work is still a thing, but most companies are moving to hybrid schedules or even bringing employees back to the office. That makes living closer to work way more convenient. Whether it’s cutting down a long commute or having more chances to network in person, being close to the office is a big plus — especially for industries that thrive on face-to-face connections. 3. Easy Access To Everything You Need or Want One of the best things about living in a city? The convenience. Public transportation, top-notch healthcare, and so much more are all within easy reach. For a lot of people, having everything nearby just makes life easier — and it’s a big reason they’re drawn to urban living. What To Do If You Want To Move To the City Let's say you moved to a suburban area during the pandemic and you’re missing the excitement of living right off city streets. You’re probably thinking: how can I afford to move back into the heart of things with how mortgage rates and home prices are? Here’s how other people are doing it. According to data from the Federal Housing Finance Agency (FHFA), home values have gone up by 57.4% in the last 5 years alone. And that means your house is probably going to sell for more than you bought it for. If you already own a home in the suburbs, you may be able to sell that house and use the equity you get back to fuel your move. Sure, you may have to compromise and be happy with a smaller, urban space – but if it’s the lifestyle you’re craving – that trade-off is going to be worth it. To find out what’s possible and what it costs to live in an urban area, lean on a local real estate professional. Bottom Line The urban renaissance is real. Whether it’s the vibrant culture, being close to work, or having easy access to everything you need, cities are once again calling — and people are answering. What’s your favorite thing about life in the city? Let me know. I’d love to find you a home you love where all the hustle and bustle makes life a bit more exciting.

View more

Buying a Home May Help Shield You from Inflation

It feels like everything is getting more expensive these days. That’s because inflation has remained higher than normal for longer than expected – and that’s impacting the costs of goods, services, and more. And with rising costs all around you, you’re probably questioning: is now really the right time to buy a home? Here’s the good news. Owning a home is actually one of the best ways to protect yourself from the rising costs that come with inflation. A Fixed Mortgage Protects You from Rising Housing Costs One of the key benefits of homeownership is that when you buy a home with a fixed-rate mortgage, your biggest monthly expense — your mortgage payment — stabilizes. Sure, your payment could rise slightly as your homeowner’s insurance and property taxes shift. But no matter what happens with inflation, your principal and interest payments won’t change. That’s not the case if you rent. Rent tends to rise over time, and it usually goes up even faster than the rate of inflation. Just look at the data from the Bureau of Economic Analysis (BEA) and the Census Bureau (see graph below): So, while renters face higher costs year after year, homeowners with a fixed mortgage rate lock in their monthly payments, making it easier to budget no matter what happens with inflation. Home Prices Typically Rise Faster Than Inflation Another big reason homeownership is a great hedge against inflation is that home values tend to appreciate over time — often at a higher rate than inflation, according to data from the BEA and Fannie Mae (see graph below): That makes real estate one of the strongest long-term investments during times of rising prices. While inflation can chip away at the value of cash savings, real estate typically holds or grows in value, allowing you to build wealth. On the other hand, renting offers no protection against inflation. In fact, it does the opposite — when inflation drives up costs, landlords often pass those increases onto tenants through higher rents. That means as a renter, you’re continually paying more without gaining any financial benefit. But as a homeowner, rising prices work in your favor by increasing the value of your home and growing your equity over time. And with experts forecasting continued home price growth, that means you’re making an investment that usually grows in value and should outperform inflation in the years ahead. In short, a fixed-rate mortgage protects your budget, and home price appreciation grows your net worth. That’s why homeownership is a strong hedge against inflation. Bottom Line Inflation can make everyday expenses unpredictable, but owning a home gives you stability. Unlike rent, your monthly mortgage payment stays pretty much the same over time. Plus, the value of your home is likely to increase after you buy. How would having a fixed housing payment change the way you budget for the future?

View more