Seller Concessions are money granted by a Seller that a Buyer can use toward specific, contractually defined closing costs when purchasing real estate.
Seller Concessions When Modeling Properties With The Real Estate Financial Planner™ Software
When modeling Dynamic Property in the Real Estate Financial Planner™ software you can choose to model Seller Concessions as either a percentage of the purchase price or as a fixed dollar amount.
IMPORTANT NOTE: If you enter in a percentage of purchase price, it overrides the fixed dollar amount field.
In most cases, you will model Seller Concessions as a percentage of the purchase price as this will change as the purchase price of the property changes over time in your modeling.
Things to Improve and Add In Future Updates
The following are improvements I'd like to add to this page in a future update.
- The impact of getting Seller Concessions versus not getting them when analyzing a deal with our deal analysis spreadsheet. Make sure you look at cash to close, return on investment for each area of the Return on Investment Quadrant™
- Tips for negotiating Seller Concessions when buying resale properties
- Tips for negotiating Seller Concessions when buying new construction
- What specifically you can use Seller Concessions for according to the Colorado Real Estate Commission approved Contract to Buy and Sell (reference what is written in the contract)
- What happens if you don't use the Seller Concessions
- Typical amounts of Seller Concessions
- Seller Concessions versus a Price Reduction when negotiating inspection items
- Seller Concessions when evaluating comparable sales, reading appraisals and determining values of properties