T
he National Association of Realtors has released a new guide that clarifies the role of seller concessions in home sales. These concessions can make properties more attractive to buyers by reducing upfront expenses, making homeownership more accessible. They can also cover various costs associated with buying a home, including fees for professionals like agents and appraisers.

    However, it's essential to note that concessions are not the same as offers of compensation, where sellers agree to pay buyer's agents for bringing in successful buyers. Concessions can be promoted upfront or requested by potential buyers, but they're usually not binding until formalized in a contract.

    There are limits on the total value of concessions, which vary depending on state law and the buyer's lender. Payments specifically offered for buyer's agents don't count against these limits. The guide also notes that offers of agent compensation cannot be made through the Multiple Listing Service (MLS), but concessions can be included with certain restrictions.

    When advertising concessions on the MLS, it's crucial to follow specific guidelines: not all MLSs allow concessions to be advertised, and some only permit a simple "yes" or "no" indication. If concessions are listed, they must be written as the total sum of all offered concessions and cannot be conditioned on the use of or payment to a buyer's agent.