Seller Participation Double Entendre

When a Home Seller agrees to pay costs on behalf of the Buyer, we call this “Seller Participation.”

This type of “Seller Participation” is an ACTIVE decision which the Seller can calculate and deduct from the proceeds thereby knowing the “net proceeds.”

A relatively high percentage of real estate transactions include this “Active Seller Participation” most commonly as a “convenience” for the Buyer to preserve cash (reduce the amount of cash required at closing) so as to be able do something more useful with it. In essence, it’s a trade off for a Higher Purchase Price . . . the Buyer is effectively rolling those costs into their loan with this Seller Participation.

The above definition clarifies the truth that this kind of Seller Participation is ACTIVE and QUANTIFIABLE – All parties know how much it is and agree to it as a term of the deal.

There’s another form of Seller Participation . . . a PASSIVE form which is WAY more expensive for the Seller and nearly impossible to quantify.

This Passive Seller Participation can literally bleed out any amount of equity the Seller thinks is there . . . It results in more (unnecessary) days on the market . . . and can neutralize any level of marketing and pricing finesse the Listing REALTOR orchestrates.

This Passive Seller Participation is a veritable plague for the subject property.

What is it?

Simply put . . . this is LACK of Seller Participation in the things that matter to bring top dollar and best terms for the sale.

If you, the Seller, are guilty of any of the following, you’re sabotaging your own (and your REALTOR’s) efforts to sell your house:

  • Failing to maintain good curb appeal (nicely trimmed lawn and bushes)
  • Failing to keep the interior clean and free of debris (Dirty dishes and clothes)
  • Declining showings (for any reason other than illness)
  • Failing to present a CLEAN looking and smelling house (Cleaning EVERYTHING including WINDOWS.
  • and this list continues.

The scope and effect of the above “infractions” is immeasurable . . . and for sure, it is detrimental to every component of the home sale

Home Sellers must participate ACTIVELY in the sale of their homes in order to be able to attract an enthusiastic Buyer and to have enough equity remaining to be able to actively participate in Buyer costs.

The sad part here is that most home sellers don’t get the fact that none of the items on my list actually cost MONEY . . . they only require a measure of effort, yet they PAY BIG BUCKS in the end.

Even the best REALTOR on the planet can’t sell a house for best price and terms if the Seller’s not participating.

I’m disheartened any time I show a house which is a clear victim of Passive Seller Participation . . . especially as I hear the prospective buyer discounting the value of the house WAY more than reality.

Step up . . . and you’ll WIN!


Published by Barry Owen

Strategist-CEO of Pareto Realty Real estate sales Professional Inviter-Facilitator-Practicer of Open Space Technology Opening safe space for people & organizations to self-organize around issues & opportunities BarryOwen.US Invite-Listen-Love

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