If you’re getting ready to buy or sell a home in Livingston County, you might’ve heard two terms that sound similar but mean very different things: concessions and commissions. Understanding both can help you make smarter decisions and feel more confident when navigating your real estate transaction.
Let’s break it down 👇
💰 What Are Commissions?
A commission is the fee paid to the real estate agents who help facilitate the sale of a home. Typically, the seller pays the commission, which is split between the listing agent and the buyer’s agent.
In Brighton and across Livingston County, commissions are often a percentage of the final sale price. While the amount can vary, it covers everything your agent does — from marketing the property and hosting showings to negotiating offers and managing the closing process.
In short, commissions are what you pay for professional representation, expertise, and peace of mind throughout one of the biggest financial transactions of your life.
🏡 What Are Concessions?
Concessions, on the other hand, are benefits or “perks” one party offers to the other to help make the deal work. Most commonly, sellers offer concessions to buyers — such as:
Covering part of the buyer’s closing costs
Paying for repairs or upgrades
Offering a credit for rate buydowns or home warranties
Concessions are negotiation tools that can help attract buyers, especially in a more balanced or buyer-friendly market.
⚖️ Why the Difference Matters
Understanding the difference between commissions and concessions is key because they affect different parts of the transaction:
Commissions = Agent compensation
Concessions = Negotiated financial help for the buyer or seller
For example, if a buyer requests concessions to offset closing costs, that comes out of the seller’s proceeds — not the agent’s commission.
🧭 Navigating Negotiations in Livingston County
Whether you’re buying your first home in Howell, selling a property in Brighton, or investing in Hartland, it’s important to work with an experienced local agent who knows how to negotiate the right balance of both.
At Pat Lotz Real Estate Group, we help our clients understand every number on the closing statement — ensuring you know exactly where your money is going, and how to maximize your outcome.
Thinking about buying or selling this fall? Let’s chat about what makes sense for you and how to position your deal for success in today’s Livingston County market.
📞 Call or text Pat Lotz at (734) 637-3668
🏠 Pat Lotz Real Estate Group | Brighton, MI
