Understanding Sales and Financing Concessions

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Sales or financing concessions refer to benefits or incentives offered by a seller to a buyer during a transaction, often to make the deal more appealing or facilitate the purchase.
Sales concessions typically involve non-financial perks, such as including furniture, offering cash incentives, or covering repair costs. These concessions aim to sweeten the deal and attract buyers.


Financing concessions, on the other hand, are financial contributions made by the seller to assist the buyer with costs related to financing the purchase. These can include covering closing costs, prepaid escrow items, or loan fees. Financing concessions are often paid directly from the seller’s equity proceeds at closing.
Both types of concessions can impact the overall cost and perceived value of the transaction.



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