About Seller Concessions

Looking for a better deal when making an offer on a home? One strategy to help defray costs at closing is to ask for seller concessions.

Seller concessions  are certain costs, that the seller will cover at closing. Typically, closing costs are 3%- 6% of the home’s price. Asking for seller concessions is a great way to help offset the cost of closing and make the home more affordable.

Items covered by concessions can include:   

• Pre paid property taxes for the remainder of the closing year
• Title insurance
• Loan origination fees
• Inspection fees
• Attorney fees
• Mortgage points

Seller concessions can also cover issues revealed during the home inspection, such as a leaky roof or a deficient HVAC System.

Your real estate professional will receive a loan estimate from the lender,  containing a list of closing costs. You can review this list with your agent to determine which costs to ask for.

Please note that sellers are not required to accept closing costs, and in a seller’s market, your chances of receiving concessions are low. Sellers are also motivated to take the least complicated offer, so a deal with concessions may not be in their best interest. Also, not all loan programs will accept seller concessions. For more information about seller concessions, click here or here. 

Ed Justen -DRE: 02221512  - Affiliated with  Keller Williams. All advice and information given on this blog is sourced from publicly available websites and common knowledge.  Got questions?  Click here to book 30-minute meeting with me.