Short Answer
Closing costs are negotiable between buyers and sellers. As a buyer, you can ask the seller to pay a portion of your closing costs through a seller concession, which is a credit toward your closing costs. This is typically negotiated as part of your offer. Sellers may agree to pay 2% to 6% of the purchase price toward your closing costs, depending on the market and loan type. The key is asking early and structuring your offer to make it attractive.
Seller concessions are a common way to reduce your out-of-pocket costs at closing. You include the request in your purchase offer, asking the seller to credit you a specific amount or percentage of the purchase price toward your closing costs. The seller may agree to a higher credit in exchange for a higher purchase price, effectively financing the costs into your loan. There are limits on seller concessions based on your loan type. Conventional loans allow up to 3% concession with less than 10% down, up to 6% with 10% to 25% down, and up to 9% with more than 25% down. FHA loans allow up to 6%. VA loans allow up to 4%. USDA loans allow up to 6%. The credit can only be used for closing costs and prepaid items, not to reduce your down payment. Your agent will help you negotiate the right amount and structure the offer to be competitive while getting the seller to contribute.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Seller concessions can make a huge difference in how much cash you need at closing. I have helped many buyers negotiate 3% to 5% seller credits that covered most of their closing costs. The key is making your offer attractive enough that the seller is willing to give a concession. In a slower market, sellers are more likely to agree. In a hot market, you may have less leverage. I will advise you on the best strategy based on current market conditions and the specific seller's situation.
Related Questions
Ready to Take the Next Step?
Every situation is unique. Let us talk about your specific goals and create a plan that works for you.