What does it mean to ask for concessions when buying a house?
A seller concession is a portion of the buyer's closing costs and prepaid expenses that the seller agrees to pay for, lowering the overall upfront costs for the buyer. Sometimes, buyers ask for concessions when the home inspection turns up an issue that needs to be remedied.
What is a builder bonus?
According to Realtor, builder incentives are benefits that home builders offer buyers to motivate them to place an offer on a house they've constructed. Builders can provide these incentives at any stage of the construction process, Realtor states, but the rewards are most commonly offered after a home is completed.
What type of mortgage would a builder offer to a buyer as an incentive to buy one of his houses?
Home builder incentives are also highly market-driven, Zuzek says. For example, home builders are responding to current high interest rates by offering a mortgage rate buydown on new construction if you go with their preferred lender.
Is it common to ask for seller concessions?
A seller concession is when the buyer asks the seller to pay for certain agreed-upon costs on the buyer's behalf. These costs can range from a couple of dollars to tens of thousands of dollars. Sometimes seller concessions are commonplace, and other times, they are almost unheard of.
Is it normal to ask for seller concessions?
In a buyer's market, there is high inventory or low demand. The buyer may have more negotiating power because a seller is more inclined to accept an offer if they aren't sure they'll get a better one. In this situation, a buyer may be able to request seller concessions as a condition of making an offer.