With the current market it's not just about price when selling your home. It can be about the concessions you’re willing to offer. When buying a house, a buyer can expect fees to cover the costs of getting the mortgage. usually ranging from around 3% – 6% of the home price.
According to Redfin, 42.9% of home sales in Q1 2023 involved sellers offering to help with closing costs — significantly up from 25.5% the previous year so if you're planning to buy or sell anytime soon, the topic of seller concessions is likely to come up.
In order to get a home sold a seller may be willing to pay some of the buyers closing costs. These are called seller concessions, and they can be a powerful way to for a buyer save on closing costs and for the seller to stand out from the completion and get their home sold quickly.
Depending on the state and lender rules, sometimes, sellers can contribute to specific closing costs or simply pay a percentage of the total closing costs. The seller may be able to cover part or all of these closing costs:
Property taxes: Pre-paid property taxes through the end of the year at closing.
Title insurance: Title insurance protects you and your lender if someone comes forth with a claim for the home’s title.
Loan origination fees: These origination fees cover your lender’s charges for processing your loan.
Inspection fees: Inspection fees cover the cost of inspections required for the loan. For example, in some states and on some loans, a pest inspector must evaluate your property before a sale can go through.
Recording fees: Recording fees cover the expense of documenting your home’s purchase with your local government.
Appraisal fee: This covers the cost of getting a licensed third-party appraisal of the home to determine the market value.
Attorney’s fees: In G you need an attorney to review closing documents. Attorney’s fees cover the cost of real estate attorney services.
Points: Mortgage points (also known as discount points) are upfront interest you pay to reduce your interest rate.
There are also specific rules in place to ensure a fair process and prevent housing price inflation?
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