Short Answer
You can ask the seller to pay a portion of your closing costs as a seller concession. This is typically done by increasing your offer price by the amount of the concession and having the seller credit that amount back to you at closing. Concessions are common, especially in buyer's markets or for homes that have been on the market for a while. Conventional loans limit concessions to 3% to 6% of the purchase price, depending on your down payment.
Negotiating closing costs through seller concessions is a common strategy to reduce your out-of-pocket cash at closing. The process works like this. You make an offer that is slightly higher than you would otherwise pay, and the seller agrees to credit you the difference at closing. For example, if closing costs are $10,000 and you are offering $400,000, you might offer $410,000 with a $10,000 seller credit. The seller nets the same amount, and you reduce your cash needed at closing. There are limits. FHA loans allow up to 6% concessions. Conventional loans allow 3% with less than 10% down, 6% with 10% to 25% down, and 9% with more than 25% down. VA loans allow up to 4%. The key is making sure the home still appraises for the higher offer price. Your agent will help you structure the offer to maximize your benefit while keeping the offer attractive to the seller.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Seller concessions are a great way to reduce your cash needed at closing. I have negotiated thousands of dollars in concessions for my buyers. The key is presenting it in a way that still nets the seller their desired amount. Let me help you structure an offer that works for both sides.
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