What are the Differences between Concessions and Closing Costs?

Like all thumbs are fingers, but not all fingers are thumbs, all closing costs are concessions, but not all concessions are closing costs.

A concession is any seller-paid cost that goes towards the buyer, such as a seller paying for a home warranty, or giving an allowance for new carpeting.

Closing costs, on the other hand, are costs associated with loan and title fees.

The reason I chose to talk about this today was to help people understand the kind of leg work that I do for my clients. When I am looking in a neighborhood for one of my buyers, I make sure to check all the homes that have recently sold and read through their contracts to see which ones have paid concessions to their sellers, how much, and why. I do this to give me a better idea of what concessions I can reasonably obtain on behalf of my buyers.

Conversely, when working with sellers, I negotiate hard to minimize seller paid concessions and when necessary, I negotiate to have those concessions paid on top of the price of the home, but rolled into the loan, so that my sellers net the most amount of money as possible.

You always want someone on your side that is willing to negotiate with toughness on your behalf! If you have any questions on what I offer my clients, I’m always happy to give you a brief overview of my marketing plan for all my clients!

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