Short Answer
Seller concessions are costs the seller agrees to pay on behalf of the buyer at closing. Common concessions include paying for some or all of the buyer's closing costs, buying down the buyer's mortgage rate, or paying for a home warranty. Concessions can make your home more attractive to buyers and help close a deal, but they reduce your net proceeds.
Seller concessions are a negotiation tool that can help you sell your home faster or at a higher price. The most common concession is a seller credit toward the buyer's closing costs. This can help a buyer who has a good income but limited cash for closing costs. Concessions are typically expressed as a percentage of the purchase price. Conventional loans allow up to 3% seller concessions 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% concessions. VA loans allow up to 4%. Offering concessions can help you attract more buyers, especially first-time buyers who may be cash-constrained. However, every dollar you give in concessions is a dollar less in your net proceeds. Your agent can help you determine whether offering concessions makes sense for your situation.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I have seen seller concessions make the difference between a deal that closes and one that falls apart. If you have a buyer who loves your home but is short on closing costs, a concession can save the transaction. The key is to structure it so it benefits both sides. I will help you evaluate whether offering concessions makes sense for your specific situation and goals.
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