Seller Concessions: How They Help Buyers & Sellers Save Money

Buying a home comes with a lot of expenses beyond the purchase price—closing costs, loan fees, and more. But did you know there’s a way to reduce some of those upfront costs? Enter seller concessions! This strategy can help buyers save money at closing while making a home more appealing to potential buyers.

What Are Seller Concessions?

Seller concessions refer to costs that the seller agrees to cover on behalf of the buyer. These costs typically go toward closing expenses, making homeownership more financially manageable. Instead of negotiating a lower sale price, a seller might offer to contribute a percentage of the purchase price to cover certain fees.

How Do Seller Concessions Work?

When a seller offers concessions, the agreed amount is applied to the buyer’s closing costs. The maximum amount a seller can contribute depends on the loan type:

Conventional Loans: Up to 3% of the home price for buyers with less than a 10% down payment (up to 6% for higher down payments).
FHA Loans: Up to 6% of the home price.
VA Loans: Up to 4% of the home price.
USDA Loans: Up to 6% of the home price.

What Do Seller Concessions Cover?

Seller concessions can be used for:
✔️ Loan origination fees
✔️ Appraisal costs
✔️ Title insurance
✔️ Property taxes or HOA fees
✔️ Mortgage points to lower interest rates
✔️ Home warranty costs

Why Sellers Offer Concessions

Sellers may agree to concessions for several reasons:
✅ Attract More Buyers – In a competitive market, concessions can make a listing stand out.
✅ Encourage a Faster Sale – If a home has been sitting on the market, offering concessions can incentivize buyers.
✅ Help Buyers Afford the Home – Covering closing costs can allow buyers to qualify for a mortgage more easily.

How Buyers Benefit from Seller Concessions

For buyers, seller concessions mean:
💰 Lower out-of-pocket closing costs
📉 More flexibility to afford repairs or updates after purchase
📈 The potential to buy a home sooner rather than waiting to save more money

Are Seller Concessions Right for You?

Whether you’re a buyer looking to reduce upfront costs or a seller trying to make your home more appealing, seller concessions can be a valuable tool. However, they require strategic negotiation to ensure both parties benefit.

If you’re considering buying or selling a home and want to explore how seller concessions can work for you, our team at Capstone Realty Professionals is here to help! Contact us today to discuss your options.

📞 Call us at 602-354-4660
📧 Email us at [email protected]
🌐 Visit us at www.capstonerealtypros.com