How do seller concessions work in Florida real estate?

A seller concession is value the seller agrees to provide as part of the transaction, often toward buyer closing costs or another negotiated expense.

The important point for a seller is that an offer should be evaluated on its complete economics and risk, not only the stated purchase price.

Look at net proceeds

A higher purchase price paired with a large seller credit may produce a lower effective result than a slightly lower offer with fewer concessions. The exact comparison depends on the contract and closing statement.

Concessions are one negotiation variable

Financing, inspection rights, appraisal exposure, closing date, deposits and other contingencies can matter alongside a concession request. Two offers at the same price can have very different risk profiles.

Seller leverage changes over time

A well-positioned new listing may have more ability to resist concession requests when buyer interest is strong. If a property has been on the market longer or has limited demand, concessions can become part of the strategy needed to reach an agreement.

Use the contract and lender rules

Concession limits and permitted uses can depend on the buyer’s financing and transaction structure. Buyers and sellers should rely on the actual contract, lender requirements and their closing professionals for the specific deal.

About the author

Matthew Hughes is an Orlando-area Realtor® with The Closers at Charles Rutenberg Realty Orlando. Florida Real Estate License SL3471704. He represents buyers and sellers throughout Orlando and Central Florida.