What’s the difference between a Price Drop vs. Seller Concession? Let’s look at it in terms of what’s Best for YOU as a Seller. It might seem the same on paper, but in real life, they’re very different: PRICE DROP • Lower list price = more buyer interest and showings —> more competition • Can reset momentum if your home has been on the market • Helps attract buyers in a shifting market SELLER CONCESSION • Price stays the same, but you cover certain buyer costs • Can go toward closing costs, rate
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Price Reduction VS. Seller Concession - What’s the Difference? Let’s say a home is listed at $550,000 Option 1: $10,000 Offer Price Reduction The purchase price is lowered to $540,000. *Buyer finances $540,000 (minus down payment) *Buyer still pays all their own closing costs. *Seller nets $540,000 Option 2: $10,000 Seller Concession The price stays $550,000, but the seller gives the buyer a $10,000 credit toward closing costs or a rate buydown. *Buyer brings less cash to closing or pays for bet
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