Selling a home can be a tricky thing when looking for the right buyer to buy your home. From time to time some sellers will offer incentives to help the buyer pick their property over another. These are often referred to as concessions that are given by the seller to the buyer to put a deal together. We see this a lot when the real estate market is in a decline and sellers feel the need to offer incentives to get the home sold. In a strong real estate market it's not very common to see these extra incentives because there potentially may be a large number of buyers who may want to buy your home.
Seller concessions can vary depending on the transition but the most common incentive is to help pay a percentage of the buyers closing costs. Closing costs would consist of escrow fee's and loan processing fee's if getting a mortgage. Typically a seller will offer to pay 1% of the purchase price or a flat fee towards the buyers closing costs. So if the purchase price is $500,000 then the seller would be contributing $5,000 towards the buyer's closing costs. This is really helpful when the buyer is wanting to buy an interest rate reduction. The seller may also offer other concessions as well. We have seen some sellers offer a repair credit up front in order to entice the buyer to purchase the property. This is typically a flat fee amount and commonly around $3,000 to $5,000 depending on the size and condition of the property.
One of the current Dana Point listings at 37 La Paloma is offering such seller concessions as the owner is very motivated to sell the home. It's located in the gated community of Encantamar which offers a prime location right across the street from the Ocean Ranch shopping center. It's currently listed at $539,900 and has been on the market for 7 days. Homes in this community normally sell in the mid $500,000 range for a two bedroom unit and in the $600,000 for three bedroom floor plans. The lowest sale in the last 2 years sold for $537,500 so this is really priced to sell. Adding seller concessions to an already low list price can be a really great deal for the right buyer. For more information on homes similar to this please contact any of our Dana Point Real Estate agents at 949-606-4114.