Lenda's Market Insight
Financial Concessions at closing Impact your Home's Value
When an appraiser or a Realtor assigns your home a market value they should take into consideration any financial concessions on recent sales. A financial concession can be any negotiation where the seller gives dollars to the buyer. Examples of financial concessions include the seller agreeing to pay some of the buyer's closing costs, buyers being given a credit at closing for a home improvement item such as new carpet, or the seller agreeing to offer cash at closing rather than repair some items found during the home inspection. In today's market, financial concessions effectively lower the existing sales price consequently lowering the net sales price.
The August 2010 Triangle MLS Market Update reported that for closed sales between Jan 1st and Aug 31st, 2010, 52% of the closings had financial concessions. For closings where concessions were paid by the seller, concessions amounted to 2.66% of the gross sales price. The overall sold price/list price ratio for all closings effectively changed from 98.5% to 95.02%. However, our Wake County tax records do not take any concessions into account when reporting the sales prices of homes.
In today's market, financial concessions have a significant impact on what you can sell your home for and what the lenders will be presented on an appraisal. When listing your home for sale, an astute agent will always factor in concessions when calculating a suggested list price. This knowledge will position you, as a seller, to price your home correctly in today's challenging buyer's market. |
Featured LG Real Estate Listing
921 Crabtree Crossing, Preston
Offered at $699,900
Outstanding detached townhome with panoramic views of 3 Prestonwood golf courses. Open floor plan. Lots of light. Dyed and scored cement floors. Warm neutral tones. Outdoor kitchen with flagstone patio. Distinct moldings and custom built-ins. 1st floor Master. 3 car attached garage. Double door entry with private courtyard & feature pond. View More Details
|
Cooking Tips from Matt
Matt Goulding, our son and co-author of "Cook This, Not That", offers the following in his recent book: 
Save Money Strategy
Think fresh tomatoes are the key to a great pasta sauce? Think again. Not only are they up to three times as expensive as canned tomatoes, they also require more prep work and produce inconsistent results (especially during the winter, when tomatoes are shipped in from the southern hemisphere). Canned tomatoes are picked at the height of tomato season and canned on the spot. Whole peeled tomatoes are your best bet, since they are minimally processed and retain the most intense tomato flavor.
Induction Cooking...the latest rage with Professional and "at home" Chefs
How would you like to save 10-15 minutes cooking time, have no grates to clean, and find that your kitchen does not heat up when cooking in the summertime? We are talking about induction cooking which is a household reality now with new technology and lower prices. Our son, Matt, recently installed an induction cooktop in his "at home" kitchen. Read More. |
|
LG Real Estate
Thank you for thinking of us as a reliable resource for valuable market information and real estate expertise.
We kindly ask you to refer your friends and neighbors to us for our comprehensive real estate services. Your referral is our highest compliment, and we assure you that we will take exceptional care of them.
See you around town,
Lenda |
