As interest rates remain high and as average days on market increase, home sellers can be frustrated with the changes in the real estate market, But there are solutions! By offering a seller concession, you can help potential buyers qualify for your home by offering a portion of your proceeds to go towards the buyer’s closing costs and prepaids. This incentive can also help drive down the home buyers' interest rate as well.
John "JJ" Jeffrey, Senior Loan Officer with over 27 years experience (NMLS201863) CO MLO #100018682, explains, “While sellers can’t participate in the buyer’s downpayment, you can help cover their closing costs.” These seller incentives can be up to 6% for both conventional and jumbo loans. And if the buyer is putting down 25% or more, you can give up to 9% of closing costs and prepaids. Jeffery continues, “With everybody having a great equity position, now is a great time to make it work for both the buyer and the seller.”
With a well-thought-out pricing strategy, you can offer in the listing a $7,000 to $10,000 seller credit. This could attract many potential home buyers and set your home apart from the competition. It is a win-win!