Agency
What is 'seller's concession' and how does the agent's role differ from advocating for it?
AA seller's concession is identical to a price reduction; agents always advocate for buyers
BA seller's concession is a credit toward buyer's closing costs; the buyer's agent advocates for the buyer getting the best concession, while the seller's agent tries to minimize the seller's concessions✓ Correct
CConcessions are illegal in Illinois because they can inflate purchase prices
DAgents for both parties must remain neutral when concessions are discussed
Explanation
A seller's concession is money the seller credits to the buyer at closing, typically to help cover closing costs. The buyer's agent advocates for maximizing any seller concessions to help their client financially.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Math Concepts
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