When selling your home, at some point the question of financial
concessions will arise. These may be credits for closing costs, repairs, or
upgrades and these incentives may improve your ability to sell the home,
especially if the home is not in turn-key condition. Yet these do reduce the
profit from your sale, so before you make the decision, consider your
options.

First, understand the current market. In a buyer’s market, where supply
exceeds demand, adding financial concessions can make your home more
appealing to the limited buyer pool. Conversely, if you are in a seller’s
market, making extra concessions may not be necessary to attract buyers.
Second, consider the condition of your home and how it compares to other
properties on the market.

If you know that you need repairs or updates that
may deter buyers, then offering additional funds up front may make your
home more appealing. Often, buyers have upgrades and changes in mind
already and these funds may encourage them to choose your listing over
the competition.

Finally, understand your timeline and goals. If you want to move quickly and
have the equity to do so, an aggressive financial concession may allow you
to sell more quickly. Making concessions is a strategic tool you and your
agent should discuss.

In a slow market, it may mean the difference
between selling quickly or lingering on the market. Understanding the
impact of concessions allows you to maximize your chances of a
successful sale.