Posted on: 8 June 2018
Prospective home buyers are under no obligation to pay the full advertised price on a house listed for sale. Some home sellers set their initial asking price at the upper range of the property's value, expecting to eventually accept a lesser amount. In addition to certain seller concessions that are regulated, home buyers can sometimes obtain a further reduction in cost by offering a lower price in the sales contract.
Seller concession differences
A seller's concession on a home sale is different from a reduced purchase price. With a seller's concession, the initial purchase price remains the same and the seller is allowed to pay some portion of the buyer's closing costs. A seller's concession is permissible with most types of mortgages, resulting in the buyer needing less cash on hand at closing.
The legal regulations surrounding seller concessions are necessary to maintain the integrity of the mortgage lending process. In contrast, a reduced purchase price offer by a prospective home buyer is mostly a matter between the buyer and seller. Seller concessions are generally restricted to closing costs. If you decide to include a lower price in a purchase offer, any aspect of the home for sale can be considered.
Features that affect home value
Most home sellers are aware of the most obvious factors affecting their house. Sellers have probably already taken into consideration the condition of the kitchen and bathrooms. However, there are some parts of any home that occupants take for granted over time. You may be able to obtain a reduced sales price by pointing out certain forgotten flaws.
Most single-family homes have one or more stairways. Cost considerations during home construction may have resulted in stairs with small stair steps. Because home occupants and visitors can sometimes trip on small steps, there are established standards for stair step sizes. You might want to reduce your offering price on a home by the cost of replacing any undersized stairways.
The average size of homes has gradually increased over the past few decades. Some older houses were built alongside a narrow paved driveway. If there is adequate yard space, you might consider the cost of widening a driveway when deciding how much to reduce your purchase offer amount.
Unless you know the home seller personally, a purchase offer with a reduced sales price is not likely to result in any hard feelings. Instead, you may be pleasantly surprised to receive acceptance of your realistic offer. Contact a real estate firm for further assistance in evaluating homes for sale.Share