For Sellers
Understanding The New Real Estate Rules
Seller Compensation Vs Concessions:
Compensation: This specifically refers to monetary compensation to a buyer’s agent for bringing a buyer who successfully closes the transaction. However, any payment you offer as Compensation (payment to the buyer’s broker/agent) is excluded from limits set by the buyer’s lender and must be made off MLS.
Concessions: This term is meant to cover a variety of costs or fees for a buyer associated with purchasing a home. Examples include title search, inspections, home repairs etc.
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.
Limits on Concessions:
The limit on the total value of the concessions you can offer depends on the terms set by the buyer’s lender and state law.
Concessions or Compensation 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 budgets.
For more information on Seller Agreements Please go to:
Jokes, News and Fun every month! Ask us about Chit Chat!
Copyright © Ken Jones Real Estate 2025 All Rights Reserved