Seller Concessions YN Live

New MLS Field: Seller Concessions Y/N

Live in Space Coast MLS Monday, July 29

Seller Concessions are monetary payments that a seller agrees to contribute towards the buyers expenses and other costs a buyer is responsible for in the transaction (IE monetary assistance towards a roof replacement, carpet replacement, point buydown, buyer representation fees etc.)

Seller concessions cannot be limited to or conditioned upon the retention of or payment to a cooperating broker. The buyer should state in the purchase offer how they want the concession to be used, including compensating their broker. Buyers may ask the seller to pay their broker's fee as a term of the purchase agreement. Again, this must be negotiated and included in the purchase offer.

Seller concession Y/N:

Yes is not a guarantee of any specific concession type or amount, and No does not prohibit an offer coming in that requests a concession. Both cover the "Maybe" value

As a general matter, seller concessions usually aren’t binding until they are established in an executed contract such as a listing agreement or a purchase contract.

Historically, concessions were available to be entered into Space Coast MLS upon closing out a listing.

At the June Board of Directors meeting, your Board of Directors approved the new MLS field Seller Concessions Y/N upon listing entry. This field will encourage transparency and greater communication between the listing agents, buyer's agents, and homebuyers by providing up-front information regarding concessions.

This field is not intended to replace compensation in the MLS.

This field will be added to Space Coast MLS listing add/edit screens on Monday, July 29, 2024.

Be sure to check with your Broker for any office policies regarding Seller Concessions.

Video: How Seller Concessions Work

Compensation vs. Concession

Real Estate Commission:

A real estate commission is a fee paid to real estate professionals for their services in helping to buy or sell a property. This fee is usually a percentage of the property's final sale price and is typically shared between the seller's broker and the buyer's broker.

The commission covers various services provided by the real estate professional resulting in the closing of a real estate transaction. Examples of services but by no means limited to: marketing the property, negotiating the sale, scheduling and facilitating all appointments including photographers, inspections and appraisals, handling the paperwork, and guiding the customer or client through the buying or selling process.

Real Estate Concession:

A real estate concession is a benefit, discount, or payment offered by the seller (or sometimes the buyer) that enables the buyer to complete the purchase.

Concessions can take many forms and are typically used to incentivize the deal, making it more attractive to the buyer.

Concessions can cover closing costs, offering repair credits, providing home warranties, inspections, and buyer broker fees.

Concessions can be a benefit that enables the buyer to complete the purchase of a property. Sellers work with their listing agent to consider and decide concessions when listing a property and or negotiating an offer.

Concessions are commonly negotiated during the offer process. During the offer process buyers with their buyer's agent may request concessions and sellers can agree, counter, or decline the request.

Key Differences:

Commission:

A professional fee paid for services rendered by licensed real estate professionals.

Concession:

An incentive, benefit, or payment offered to facilitate the sale which can take various forms.

Commission:

Compensates real estate professionals for their work in the closing of a real estate transaction.

Concession:

Provides incentives or added value that could enable the buyer to complete the purchase of a property.

Commission:

Negotiated between the seller and the listing broker and/or the buyer and the buyers broker and paid at the time of closing.

Concession:

Negotiated between the seller and the buyer, affecting the net amount the seller receives and the buyer pays.

Association Vision: Space Coast Association of REALTORS® is the trusted voice of real estate in our community.

Association Mission: Space Coast Association of REALTORS® exists to support our members’ success as real estate professionals while advocating for private property rights and the ethical practice of real estate.

Values: Membership // Professionalism // Leadership // Advocacy // Outreach.

Stay in the loop! Follow us on our social platforms.

Be Social With Us