What Are Seller Concessions & How To Use Them

Three seller concessions for sellers.

1. Differentiate

In a tight market, any advantage you can get to grab the buyer is helpful. Selling the house with a concession, or without a concession, may not change the net number to you, but could be the reason why you sell.

2. Prepay Expenses

You can use a seller concession to prepay homeowners association fees for a year, or two years, or even better, prepay a new special assessment in your development that will help you nab the buyer where another unit may not have it.

3. Prepay The Mansion Tax

Once you get over a million dollars in New Jersey on a residential sale, a 1% estate tax is applied. And it’s the seller’s responsibility, although the buyer typically pays it. If you prepay that, you’ll avoid getting stuck at a $999,999 sale price.