Concession
A concession is something of value that one party gives up or grants to another party during a real estate negotiation. This can include seller-paid closing costs, repairs, price reductions, or other incentives to help close the deal.
Example
“The seller made a $5,000 concession toward closing costs to help the buyer complete the purchase.”
Memory Tip
Think 'concede' in sports - you're giving up points or advantages to win the bigger game (the deal).
Why It Matters
Concessions can make or break a deal by helping buyers afford a property or helping sellers close when market conditions are challenging. They provide flexibility in negotiations when parties can't agree on price alone.
Common Misconception
Many people think concessions always mean the seller is desperate, but they're often strategic tools used in normal market conditions to structure deals beneficially for both parties.
In Practice
A seller might offer to pay $5,000 toward the buyer's closing costs instead of reducing the home price, allowing the buyer to finance these costs into their mortgage while maintaining the home's appraised value.
Etymology
From Latin 'concedere' meaning 'to yield or give way,' reflecting how one party yields something of value to reach an agreement.
Common Misspellings
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