Should You Renovate Before Selling? A Cost-Benefit Analysis

By Preferred Properties of Asheville

When selling a home, many homeowners wonder whether investing in renovations will lead to a higher sale price or faster sale. While some updates can provide a strong return on investment (ROI), others might not be worth the time, effort, or expense. At Preferred Properties of Asheville, we help our clients navigate these decisions with a focus on maximizing value. Here’s a cost-benefit analysis to help you decide if renovating before selling is the right move for you.

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The Benefits of Renovating Before Selling

1. Attract More Buyers

Renovated homes often have greater appeal in competitive markets like Asheville, where buyers value move-in-ready properties. Updated features can make your home stand out, leading to more showings and offers.

2. Potential for Higher Offers

Modern finishes and functional spaces can justify a higher asking price. For example, an upgraded kitchen or refreshed curb appeal can increase perceived value and encourage buyers to offer more.

3. Quicker Sale

Homes in good condition tend to sell faster. By addressing potential buyer concerns, such as outdated fixtures or visible wear and tear, you reduce the chances of prolonged negotiations or a property lingering on the market.

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The Drawbacks of Renovating Before Selling

1. High Upfront Costs

Renovations can be expensive, and there’s no guarantee you’ll recoup the full amount in the sale. Large projects like kitchen remodels or roof replacements may cost more than the added value they bring.

2. Time Delays

Renovations take time, which could delay listing your home. In a fast-moving market, waiting to complete updates might mean missing out on eager buyers.

3. Risk of Over-Personalization

Not all buyers will appreciate your design choices. Bold colors or highly customized features could alienate potential buyers instead of attracting them.

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Cost-Benefit Analysis: Which Renovations Make Sense?

High-ROI Renovations

These projects typically offer the best return for your investment:

• Minor Kitchen Updates: Refresh cabinets, update hardware, and replace old appliances with energy-efficient models.
• Bathroom Improvements: Replace outdated fixtures, add modern lighting, and regrout tile for a clean, updated look.
• Curb Appeal Enhancements: Paint the front door, update landscaping, and power wash the exterior.
• Fresh Paint: A coat of neutral paint can make your home feel brighter and more spacious.

Low-ROI Renovations

These projects are less likely to recoup their costs:

• Major Remodels: Full kitchen or bathroom overhauls can be costly and time-consuming, often exceeding the added value.
• Luxury Upgrades: Features like high-end finishes, smart home systems, or custom pools may not appeal to all buyers.
• Extensive Personalization: Unusual layouts, bold color schemes, or niche additions may not align with buyer preferences.

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Consider Your Market

In Asheville, buyer preferences can vary widely based on neighborhood and property type. For example:

• Homes in highly desirable neighborhoods might benefit from cosmetic updates to match market expectations.
• Properties in up-and-coming areas may attract buyers looking for affordability over perfection, making renovations less critical.

Working with a local real estate expert can help you assess what updates are most likely to pay off in your specific market.

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Alternatives to Renovating

1. Price Strategically

If you can’t or don’t want to renovate, pricing your home appropriately for its current condition can still attract buyers.

2. Offer Credits

Provide a repair or renovation credit as part of the sale. This allows buyers to make updates themselves while ensuring you avoid upfront costs.

3. Focus on Staging

Professional staging can transform your home’s appearance without the cost of major renovations.

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Final Thoughts

Deciding whether to renovate before selling comes down to weighing costs against potential benefits. In some cases, a few strategic updates can lead to a faster sale and higher offers. In others, it may make more sense to list your home as-is.

At Preferred Properties of Asheville, we can help you evaluate your home’s current condition, market trends, and buyer expectations to develop the best strategy for your sale. Contact us today for personalized advice on preparing your home for the Asheville market!

Staging Secrets to Sell Your Home Faster

By Preferred Properties of Asheville

When selling your home, first impressions are everything. A well-staged home not only looks appealing but helps potential buyers envision themselves living there. At Preferred Properties of Asheville, we know how to highlight a home’s best features to attract offers quickly and at the best price. Here are some expert staging secrets to help you sell your home faster.

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1. Declutter and Depersonalize

Buyers want to see the potential of the space, not your personal belongings. Start by:

• Decluttering: Remove excess furniture, knick-knacks, and items that make the space feel cramped.
• Depersonalizing: Take down family photos, personalized decor, and collections. This allows buyers to imagine their own life in the home.

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2. Deep Clean Every Room

A sparkling clean home signals to buyers that it has been well-maintained. Pay special attention to:

• Kitchens and Bathrooms: Scrub grout, polish fixtures, and make surfaces shine.
• Floors and Carpets: Consider professional cleaning to eliminate stains or odors.
• Windows and Mirrors: Clean glass surfaces to maximize light and create a polished look.

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3. Highlight Key Spaces

Focus on the rooms that make the biggest impact:

• Living Room: Arrange furniture to create a cozy, inviting atmosphere.
• Kitchen: Clear counters of small appliances and add fresh fruit or flowers for a pop of color.
• Bedrooms: Use neutral bedding and minimal decor to create a relaxing retreat.

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4. Use Neutral Colors

A fresh coat of paint in neutral tones can do wonders for a home’s appeal. Colors like soft gray, beige, or white make spaces feel larger and allow buyers to imagine their own decor. Avoid bold or trendy colors that might not appeal to everyone.

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5. Let There Be Light

Bright, well-lit spaces feel more inviting. Maximize natural and artificial lighting by:

• Opening Curtains and Blinds: Let sunlight fill the room.
• Replacing Bulbs: Use warm, consistent lighting throughout the home.
• Adding Lamps: Light up darker corners to make spaces feel larger and cozier.

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6. Enhance Curb Appeal

The exterior of your home is the first thing buyers see. Make a great impression by:

• Tidying Up Landscaping: Mow the lawn, trim bushes, and add fresh mulch.
• Painting the Front Door: Choose a welcoming, bold color to create a standout entrance.
• Adding Potted Plants: Place flowers or greenery near the entryway for a warm touch.

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7. Stage Outdoor Spaces

Outdoor areas are especially important in Asheville, where buyers often value spaces for relaxing or entertaining. Consider staging:

• Porches and Patios: Add comfortable seating, outdoor rugs, or string lights.
• Gardens or Lawns: Highlight areas for gardening or play.

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8. Add Finishing Touches

Small details can leave a lasting impression:

• Fresh Flowers: Place vases of flowers in key areas like the dining table or kitchen.
• Scent: Use subtle, natural fragrances like lavender or vanilla. Avoid overpowering air fresheners.
• Art and Decor: Use simple, tasteful decor to complement the space without overwhelming it.

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9. Create a Lifestyle

Stage your home to reflect the lifestyle buyers aspire to. In Asheville, that might mean incorporating cozy mountain-style decor, showcasing a fireplace, or setting up an inviting outdoor seating area. Highlight unique features of your home that align with local trends and tastes.

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10. Work with Professionals

Professional staging services can make a significant difference in how your home is perceived. At Preferred Properties of Asheville, we can recommend trusted staging experts or guide you through the process to ensure your home stands out in the market.

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Final Thoughts

A well-staged home can make all the difference in attracting buyers and securing offers quickly. By following these staging secrets, you’ll showcase your property in the best light and make it irresistible to potential buyers.

Ready to sell your home? Contact Preferred Properties of Asheville today to learn how we can help you prepare, market, and sell your home with confidence!

Top Tips for First-Time Homebuyers

Buying your first home is an exciting milestone, but it can also feel overwhelming. From securing financing to finding the perfect property, there are many steps in the process. With the right guidance, however, you can navigate it like a pro! Here are our top tips to help first-time homebuyers make confident decisions and avoid common pitfalls.

1. Understand Your Budget

Before you start house hunting, take a close look at your finances. Assess your income, savings, and monthly expenses to determine how much you can afford. Use a mortgage calculator to estimate monthly payments, including property taxes, insurance, and HOA fees if applicable. Remember to leave room in your budget for unexpected expenses or emergencies.

2. Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage helps you understand your borrowing power and shows sellers that you’re a serious buyer. Compare lenders to find the best interest rates and terms. Keep in mind that pre-approval isn’t the same as final approval, so avoid making big financial changes, like switching jobs or opening new credit lines, during the homebuying process.

3. Make a List of Must-Haves and Nice-to-Haves

What features are non-negotiable in your new home? Think about the number of bedrooms, location, yard size, or proximity to work or schools. Separating your "must-haves" from your "nice-to-haves" will help you stay focused and prioritize what matters most.

4. Research Neighborhoods Thoroughly

A home isn’t just about the property; the neighborhood is just as important. Consider factors like school ratings, walkability, safety, and nearby amenities. Visit potential neighborhoods at different times of the day to get a feel for the area.

5. Don’t Skip the Home Inspection

Even if the home looks perfect, a thorough inspection is essential. A professional inspector can identify hidden issues, such as plumbing problems, roof damage, or foundation concerns. This step can save you from unexpected costs down the road and provide leverage in negotiating repairs or price reductions.

6. Plan for Additional Costs

First-time buyers often overlook the extra expenses associated with purchasing a home. Be prepared for closing costs, which can range from 2-5% of the home’s price. Additionally, budget for moving expenses, utility connections, and immediate repairs or upgrades.

7. Work with a Knowledgeable Real Estate Agent

A skilled real estate agent is your best ally in navigating the complexities of buying your first home. They can help you find properties that match your criteria, negotiate on your behalf, and guide you through the paperwork.

8. Be Patient and Flexible

Finding the perfect home takes time. You might need to compromise on some features or adjust your budget as you explore your options. Stay open-minded and trust the process.

9. Learn About First-Time Homebuyer Programs

Many states and local governments offer programs to help first-time buyers, including grants, low-interest loans, or tax credits. Research what’s available in your area—you could save thousands!

10. Think Long-Term

Consider your future needs when buying a home. Are you planning to grow your family, work from home, or stay in the area for years? Choose a property that aligns with your long-term goals.

Final Thoughts

Buying your first home is a big step, but with preparation and the right team by your side, it can be a smooth and rewarding experience. By following these tips, you’ll be well on your way to finding the home of your dreams.

Are you ready to start your homebuying journey? Contact us today to learn how we can help you every step of the way!

An open house is an event organized by a real estate agent, seller, or broker to showcase a property for sale to potential buyers. The event is typically scheduled for a few hours on a specific day, allowing interested buyers to tour the home without needing an appointment. Open houses are designed to attract a broad range of visitors, including those who may not have committed to buying yet.

Features of an Open House:

1. Casual Atmosphere: Visitors can explore the home at their own pace.
2. No Appointment Needed: Unlike private showings, buyers can drop in during the advertised hours.
3. Staging: Homes are often cleaned and staged to look as appealing as possible.
4. Agent Presence: A real estate agent is usually present to answer questions and provide details about the property.

Do Open Houses Work?

The effectiveness of open houses depends on the market, the property, and the goals of the seller and agent:

Advantages:

• Exposure: Open houses can attract buyers who may not have scheduled a private showing.
• Convenience: Buyers can view a property without the pressure of a one-on-one appointment.
• Potential Bidding Interest: A busy open house can signal demand, encouraging competitive offers.
• Leads for Agents: Agents often meet new potential clients at open houses.

Disadvantages:

• Unqualified Visitors: Many attendees may not be serious buyers, just curious neighbors or window-shoppers.
• Limited Offers: In competitive markets, serious buyers often prefer private showings over open houses.
• Security Risks: Allowing many people into a home increases the risk of theft or damage.

Do They Lead to Sales?

• Yes: In some cases, open houses help sell homes by generating buzz and creating a sense of urgency.
• No: In other cases, especially for high-value properties, most buyers come through private showings.

When Are Open Houses Most Effective?

• In a hot market with high buyer activity.
• For newly listed properties that generate early interest.
• When the property is priced competitively and has broad appeal.

Would you like to know how to maximize an open house or alternatives to hosting one?

REALTORS Add Real Value
247 Reasons why it's worth working with a Realtor.® 

1. Give an overview of current market conditions and projections.

2. Review and explain transaction/ agency brokerage relationships.

3. Explain working relationships based on state law, the Realtor® Code of Ethics and the brokerage’s business policies.

4. Explain Federal and State Fair Housing laws.

5. Reassure the seller or buyer that their personal information will remain confidential.

6. Prepare the seller or buyer for executing agency agreements.

7. Review and thoroughly explain all clauses in the listing contract and addendum or buyer representation agreement.

8. Explain how compensation is paid, who pays it, and what the client’s options are.

9. After ensuring the client understands what will be done for them, how it will be done, and the benefit to them, obtain all necessary signatures on agency agreements and/or listing agreement.

10. Provide signed copies of all agreements and the MLS listing sheet within 48 hours.

11. Review a sample sales contract so client is prepared when it comes time to make an offer or to review a submitted offer. 

12. Inform the seller and buyer that all known material facts are required, under the law, to be disclosed.

13. Explain the local market and how it impacts the client.

14. Educate the client on the immediacy of new listings appearing in the MLS and the lag time for listings to appear on some websites.

15. Show statistics on what percentage of list price sellers in the area are currently receiving.

16. Inform client on what home features are popular.

17. Identify current average days on market.

18. Explain the concept of absorption rate and how it impacts the buying process. 19. Indicate current listing months of market inventory. 20. Caution clients about posting information to social media.

21. Inform client of negative aspects like nearby venues or operations that may result in issues that could impact value.

22. Check applicable zoning and building restrictions.

23. Explain wire fraud risks and remind clients to verify all wiring instructions before transferring funds.

24. Ensure all parties have all forms and information needed to close the sale.

25. Review closing disclosure with the client to ensure accuracy.

26. Double-check all tax, homeowners’ association dues, utility, and applicable prorations, if relevant.

27. Request final closing figures from the closing agent (often an attorney or title company) and carefully review with client.

28. If a rental, verify all deposits and prorated rents are reflected accurately on the closing statement 

Read more here..https://d15zjc2r4e8kr7.cloudfront.net/8587/RealtorsAddRealValue.pdf

As a home seller, you have a wide range of choices when deciding how to market your property. This includes whether you'd like to offer-or authorize your agent to offer-compensation to a buyer's agent as a way to attract potential buyers. Here's what you need to know as you consider your options related to offering compensation:

1. What is an offer of compensation and why make one? An offer of compensation is when you­the seller-or your agent compensate another agent for bringing a buyer to successfully close the transaction. Offers of compensation help reduce out-of-pocket costs for prospective buyers, which in turn may bring more potential buyers for the transaction. These costs can be especially significant for first-time buyers, lower- to middle-income buyers, or those from underserved communities.
2. Are offers of compensation mandatory? No. It is up to you to determine if making an offer of compensation is the best approach for selling your property. Agents who are REALTORS® are here to help answer your questions and guide you to make a decision that works for you.
3. As a seller, does my agent need my permission to offer compensation to a buyer's agent? Yes. Your agent can only offer compensation or make a payment to a buyer's agent if they have your written approval and signoff on the amount.
4. What types of compensation can I offer? There are many options available to you as a seller to discuss with your agent. These could include a flat fee paid directly to the buyer's agent or allowing your agent to share a part of their compensation with the buyer's agent. Beyond compensation, you could also consider offering a buyer certain concessions, such as covering closing costs, to make the total home purchase more affordable for them.
5. How will a buyer's agent know if there is an offer of compensation? Offers of compensation can be advertised in many ways. If you approve an offer of compensation, it can be shared through common marketing methods such as flyers, signs, brokerage websites, social media posts, or simply through a phone call or email. Offers of compensation cannot be listed on Multiple Listing Services (MLSs), on line platforms that compile home listings from many different sources.
6. Do I have to advertise an offer of compensation if I decide to make one? No, it's up to you to decide. Advertising can help get the word out to bring more buyers to the table, but you can also choose not to advertise and instead negotiate the offer in a purchase agreement.
7. You mention concessions-what does that mean? A seller concession is different than an offer of compensation. It is when a seller covers certain costs associated with purchasing a home for the buyer. Concessions can make home ownership more accessible for buyers by reducing upfront expenses. These can cover things like some transaction costs or property repairs.
8. How do I know what option is best for me? When you work with an agent who is a REALTOR®, you are working with a professional guided by ethical duties under the REALTOR® Code of Ethics, including the pledge to protect and promote the interests of their clients. Your agent will work with you to weigh your options, answer questions, and develop a strategy you are confident in. You can read more about REALTORS'® duty to put client interests above their own here.

Practices may vary based on state and local law. Consult your real estate professional and/or consult an attorney for details about state law where you are purchasing a home. Please visit facts.reg/tor for more information and resources.

CONSUMER GUIDE: FAIR HOUSING

Buying or selling a home is more than a transaction-it's fundamental to your long-term goals and financial future. Consumers and agents all have rights and responsibilities to promote a home buying or selling process free from discrimination. Here's what you need to know:

What is "fair housing" and how does it help me? The federal Fair Housing Act prohibits discrimination in housing and housing-related transactions based on race, color, sex (including sexual orientation and gender identity), national origin, religion, disability, or familial status. Local and state fair housing laws may prohibit discrimination on additional protected classes. The bottom line is that discrimination hurts all sides of a home transaction, closes the door on the American dream of homeownership, and perpetuates economic inequality. Homebuyers, home sellers and real estate professionals depend on strong fair housing laws and practices for our communities and economy to thrive.

How do fair housing laws apply to me as a buyer? You should expect to receive the same professional service in the homebuying process regardless of any protected characteristic. This includes equitable treatment by your agent, the seller, the seller's agent, appraisers, lenders, and others involved in your home search and purchase. You should also expect your agent to provide you with home options in your price range regardless of the racial or ethnic composition of neighborhoods.

How do fair housing laws apply to me as a seller? You cannot discriminate when selling your home based on the buyer's race, color, sex (including sexual orientation and gender identity), national origin, religion, disability, or familial status. You also cannot instruct your agent to conduct a sale any differently based on these prohibited reasons. That means you cannot advertise your home to just one or to a limited number of groups.

How does working with an agent who is a REALTOR® help ensure fair housing practices are followed? In addition to an obligation to comply with applicable fair housing laws, REALTORS® adhere to the highest ethical standards. the REALTOR® Code of Ethics obligates REALTORS® to provide equal professional services to all consumers. Among other ethical duties, REALTORS® must not discuss the demographic composition of a neighborhood, advertise a property in a way that indicates any preference, limitations, or discrimination for a prohibited reason. Read more about REALTORS'® duty to put client interests above their own here.

Where can I report suspected discrimination in the homebuying or selling process? Report housing discrimination to the Office of Fair Housing and Equal Opportunity (FHEO) at the Department of Housing and Urban Development (HUD) and ethical violations to your agent's state or local REALTOR® Association (find an association here). You can also report concerns to a local nonprofit fair housing organization (find by ZIP code here). Fair housing laws prohibit harassment or intimidation if you report discriminatory behavior.

The Fair Housing Act is a federal law; many state and local laws provide additional protections. Consult your real estate professional, an attorney, and your state's housing authority for details about applicable fair housing laws where you are selling or purchasing a home. Please visit facts.realtor for more information and resources.

CONSUMER GUIDE: LISTING AGREEMENTS 
If you choose to work with a real estate professional to sell your home, one of the first things you'll do is negotiate and sign a listing agreement with the agent you've selected. Here's what you need to know: 

1. What is a listing agreement? A listing agreement is a contract between you and your agent that says the agent can represent you and market your property to potential buyers and their agents and establishes the sales price for your home. It will also lay out the type of professional representation and services your agent will provide and what they will be paid for those services. Agent compensation is fully negotiable and not set by law. 
2. What are my options for agent representation? The options available may vary based on where you are selling your home or who you are working with. Some of the most common arrangements include:
   •    Exclusive Agency Listing Agreement: You work with just one agent and agree to compensate them if they sell your home. This allows you to retain the option to sell your home yourself without having to compensate your agent for the sale.
   •    Exclusive Right-to-Sell Listing Agreement: You work with just one agent, but you are responsible for your agent's compensation no matter who sells the property.
   •    Limited-Service Listing Agreement: You work with just one agent who provides a limited set of services, such as publicly marketing your home on a Multiple Listing Service (MLS)-an online platform that compiles home listings from different sources-but may not provide other services, such as arranging showings, providing input on purchase offers, or supporting the negotiation process.
   •    Non-Exclusive Listing Agreement: You work with one agent or multiple agents and agree to compensate the agent who ultimately sells your home.
3. What services might be included in a listing agreement? The listing agreement typically lays out the agreed upon methods your agent will use to sell your home. Your agreement might include information on how your property will be marketed. This could include listing on an MLS, offering a seller concession covering some costs associated with purchasing a home for the buyer, or offering compensation to a buyer's agent. Read more about MLSs here, offers of compensation here, and seller concessions here. 
4. Are offers of compensation mandatory? No. It is up to you to determine if making or authorizing an offer of compensation is the best approach for selling your property. Agents who are REALTORS® are here to help guide you on marketing strategies so that you can make a decision that works for you. 
5. How do I know what will work best for me? When you work with a REALTOR®, you are working with a professional guided by ethical duties under the REALTOR® Code of Ethics, including the pledge to protect and promote the interests of their clients. Your agent will work with you to help you understand the market and to weigh your options, answer questions, and reach an agreement that you are confident in.
   If you have any concerns about your agreement or don't understand it, you should consult an attorney. Practices may vary based on state and local law. Consult your real estate professional and I or consult an attorney for details about state law where you are purchasing a home. Please visit facts.realtor for more information and resources. 

CONSUMER GUIDE: MULTIPLE LISTING SERVICES (MLSs) 
When buying or selling a home, your real estate professional may use a Multiple Listing Service (MLS) to find homes for sale or market your property. Here is what you need to know: 

1. What is an MLS? MLSs provide online platforms that compile home listings from brokerages in a given market. They enable agents to efficiently see available homes for sale and get helpful marketplace data and typically share listing information to national and local websites that advertise property information. There are many MLSs across the U.S., and each has its own rules to make sure its information is complete, accurate, and transparent. 
2. What value does an MLS provide? MLSs allow real estate professionals to see, share, and promote homes for sale so they can be found by the largest pool of potential buyers. MLSs provide the most accurate, reliable, and detailed information about properties (both that have sold and are for sale), including listing price, address, features, disclosures, and square footage. MLSs also help promote fair housing and equal opportunity by giving real estate professionals and their clients access to consistent information. 
3. As a buyer, how can an MLS help me buy a home? Using an MLS allows your agent to access many homes for sale and connect with agents working to sell their clients' homes. 
4. As a seller, how can an MLS help me sell my home? MLSs are the most trusted source for real estate data because their information is verified by real estate professionals. Listing on an MLS will help a seller reach the largest pool of buyers and potentially attract the best offer. 
5. Am I required to market my home through an MLS? No. You should discuss the pros and cons with your agent. If you decide to have your agent not list your home on an MLS, you may be asked to sign a document verifying that you as the seller have made this choice. 
6. Can I make an offer to compensate a buyer's agent on an MLS? An offer of compensation is when the seller or the seller's agent offers to compensate another buyer's agent for bringing a buyer to successfully close the home purchase. As of August 17, 2024, offers of compensation are no longer allowed on MLSs. However, offers of compensation can still be made off-MLS and shared through common marketing vehicles such as flyers, signs, emails or other communication mechanisms. Read more about offers of compensation here. 
7. Can I offer concessions on an MLS? To attract more buyers, sellers may offer concessions, which are certain costs associated with the buyer's home purchase that a seller agrees to pay. MLSs may allow communications about a sellers' concessions, but it depends on local rules. Read more about concessions here. 
8. How do I access MLS information? Many MLSs share data with websites that consumers can access. If you are a buyer, your agent will provide you with MLS property listings that may meet your criteria. For both buyers and sellers, when you work with an agent who has access to an MLS, you can discuss how the MLS can benefit you. Remember, agents who are 
9. REALTORS® are guided by ethical duties under the Code of Ethics, including the pledge to protect and promote the interests of their clients. Your agent will help you to weigh your options and develop a strategy you are confident in. 
   
   Questions? Give us a call, we have agents on duty 7 days a week. 828-258-2953

Practices may vary based on state and local law. Consult your real estate professional and/or consult an attorney for details about state law where you are purchasing a home. Please visit facts.reg/tor for more information and resources. 

CONSUMER GUIDE: SELLER CONCESSIONS

As a home seller, you have choices when deciding how to market your property, including whether you'd like to offer concessions to attract buyers or close a deal. Here's what you need to know as you consider whether this approach is right for you:

1. What are seller concessions and why do they make them? A concession is when a seller pays for certain costs associated with purchasing a home for the buyer. Concessions could make your property more attractive to buyers or lead to a better or faster offer. Concessions also help make home ownership more accessible for buyers by reducing upfront expenses, so buyers with limited cash reserves may be able to stretch their budget further.
2. What are some examples of concessions I can offer? You have options. Concessions can include covering costs associated with a title search, loan origination, inspection, homeowners' associations, real estate taxes, or home repairs and updates. They can also be used to cover fees for professionals like agents and appraisers.
3. How do seller concessions work? Concessions can be advertised upfront or negotiated as part of a home purchase agreement. In the agreement, a concession is often written as a specific dollar amount. Seller concessions usually aren't binding until they are put in a contract like a purchase agreement.
4. What's the difference between a concession and an offer of compensation? Concessions can cover a variety of costs or fees for a buyer associated with purchasing a home, whereas an offer of compensation is specifically when the seller or their agent agrees to compensate a buyer's agent for bringing a buyer who successfully closes the transaction. Read more about offers of compensation here.
5. How do I tell buyers I'm offering concessions? Concessions can be advertised publicly, shared on a Multiple Listing Service (MLS)-an online platform that compiles home listings from different sources-or discussed during purchase negotiations. Keep in mind that not all MLSs allow concessions to be advertised, and some only allow you to indicate whether you are offering a concession with a simple "yes" or "no." If you choose to put a concession on an MLS, it must be written as the total sum of all concessions offered and can't be conditioned on the use of, or payment to, a buyer's agent.
6. Is there a limit to the concessions I can offer? Yes. The limit on the total value of concessions you can offer depends on the terms set by the buyer's lender and state law. However, any payment you offer toward the buyer's broker's fee is excluded from this amount and must be made off-MLS.
7. How do I know what option is best for me? When you work with an agent who is a REALTOR®, you are working with a professional guided by ethical duties under the REALTOR® Code of Ethics, including the pledge to protect and promote the interests of their clients. Your agent will work with you to weigh your options, answer questions, and develop a strategy you are confident in. You can read more about REALTORS'® duty to put client interests above their own here.

Practices may vary based on state and local law. Consult your real estate professional and I or an attorney for details about state law where you are purchasing a home. Please visit facts.realtor for more information and resources.