If you’re shopping for a home right now, you’ve probably heard the term seller concessions pop up—maybe from your agent, your lender, or even online. But what does it actually mean for you?
At Best Option Mortgage, we make sure you’re equipped with the knowledge and tools to buy confidently. Understanding seller concessions could help you save money, reduce your upfront costs, and negotiate better terms. In a market where every dollar counts, knowing how concessions work is a game-changer.
Let’s break it down.
1. What Are Seller Concessions?
In simple terms, seller concessions are costs the seller agrees to pay on your behalf as the buyer.
These concessions are usually offered to make the deal more appealing to you—especially in markets where sellers need to compete for buyers’ attention. Instead of lowering the sale price, a seller might offer to help cover your closing costs, pay for repairs, or buy down your interest rate.
That’s real money back in your pocket.
Seller concessions can reduce how much you need to bring to closing, making it easier and more affordable to buy a home.
2. What Do Seller Concessions Typically Cover?
Seller concessions can take a few different forms. Here are the most common ways they show up in a deal:
Covering Closing Costs
These include lender fees, title insurance, escrow fees, and more. A seller might offer to cover a percentage of these costs—saving you thousands at the closing table.
Interest Rate Buy-Downs
Some sellers may pay upfront points to lower your mortgage interest rate. This can shrink your monthly payment and save you significant money over time.
Repair Costs or Credits
Did the inspection turn up a few issues? Instead of delaying repairs, the seller might offer a credit so you can handle the work yourself after closing.
Prepaid Items
In some cases, sellers might cover prepaid expenses like property taxes or homeowners insurance for the first year.
Each concession lowers your immediate out-of-pocket expenses and makes it easier to say yes to a home that fits your needs.
3. Why Are Sellers Offering Concessions Right Now?
Market conditions are shifting. As more homes become available, buyers have more options—and sellers have to work harder to win your offer.
According to recent data, nearly half of sellers are offering some form of concession. That’s not just happening in slow markets. Even in competitive areas, flexible sellers are using concessions to stand out.
Here’s why this works in your favor:
Sellers want to avoid long time on the market
They want to appeal to budget-conscious buyers
They want a smoother, faster closing
If you're in the market to buy, this is your opportunity to negotiate smart.
4. How Do Seller Concessions Help You?
Concessions can have a direct and powerful impact on your homebuying journey.
Lower Upfront Costs
If a seller covers $6,000 in closing costs, that’s $6,000 less you need to save or finance. For many buyers, this makes the difference between buying now or waiting longer.
More Flexibility in Budget
That extra cushion means you might afford a slightly higher-priced home—or keep more in savings for future upgrades or emergencies.
Easier Approval Process
Lowering your closing costs can sometimes improve your loan profile. It reduces the amount of cash you need to bring in, which might help you qualify more comfortably.
Opportunity to Improve Loan Terms
Some sellers offer to buy down your rate temporarily or permanently. This can reduce your monthly payment and increase affordability.
In other words: seller concessions make homeownership more accessible.
5. When Should You Ask for Concessions?
Seller concessions aren’t guaranteed—but knowing when to ask gives you an edge.
You're in a Buyer-Friendly Market
If homes are sitting longer or price cuts are becoming common, sellers may be more willing to negotiate concessions to get under contract.
The Home Needs Repairs
If the inspection reveals work that’s needed, asking for a repair credit or a concession toward closing is completely reasonable.
The Home Is Overpriced
Instead of asking the seller to lower the purchase price, you might request a credit or closing cost assistance.
You’re Competing With Cash Offers
If you can’t waive contingencies like a cash buyer can, asking for seller help on costs might make your offer more attractive by offsetting your limitations.
A qualified mortgage advisor—like our team at Best Option Mortgage—can help you decide what’s realistic and how to structure the request.
6. How Much Can Sellers Contribute?
There are limits to how much a seller can offer in concessions. These vary depending on the loan type:
Conventional Loans: Typically, sellers can contribute up to 3% of the purchase price if your down payment is under 10%. If your down payment is higher, the limit can increase to 6% or more.
FHA Loans: Sellers can contribute up to 6% of the home price toward closing costs.
VA Loans: Seller concessions are capped at 4%, though other allowances may apply.
USDA Loans: Generally allow up to 6% in concessions.
Your mortgage advisor will help ensure everything fits within these guidelines—so you don’t run into surprises during underwriting.
7. How to Ask for Seller Concessions the Right Way
Negotiating concessions is part art, part strategy. Here’s how to approach it:
Work with a great real estate agent who knows the local market and how to position your offer respectfully.
Know the value of the home—if it’s been sitting or recently reduced, you may have leverage.
Make a strong, clean offer, even with concessions. The goal is to make the seller feel like they're still winning.
Be flexible. Sometimes you won’t get everything, but even partial concessions can make a difference.
When we pre-approve you at Best Option Mortgage, we’ll help your agent structure the offer to align with your financing and the seller’s needs.
8. What Happens If the Seller Says No?
Sometimes sellers push back or say no entirely—and that’s okay.
They may counter with a lower concession or none at all. At that point, you can:
Negotiate other terms
Increase your offer price slightly to absorb the cost
Walk away if the home no longer makes financial sense
The goal is to buy a home that works for your budget and lifestyle—not just to win for the sake of winning.
With the right guidance, you can navigate the process confidently and protect your interests.
9. How Best Option Mortgage Supports You
At Best Option Mortgage, we help you make the most of every opportunity—including seller concessions.
Here’s what we bring to the table:
Clear Cost Estimates
We break down your estimated closing costs upfront—so you know exactly how a concession would help.
Loan-Type Matching
We make sure your request aligns with loan rules and lender guidelines.
Agent Collaboration
We work closely with your real estate agent to help craft a smart, competitive offer that includes the right concession structure.
Long-Term Planning
Even if you don’t get concessions, we help you adjust your budget, loan options, and payment plans to keep the deal alive.
Our mission is to make homebuying smooth, transparent, and attainable.
Bottom Line: Seller Concessions Are a Buyer’s Best Tool
If you’re serious about buying a home, understanding seller concessions could help you save thousands, buy sooner, and reduce stress at the closing table.
They’re not a sign of a weak market—they’re a smart feature of today’s evolving landscape. And in the hands of a knowledgeable buyer with expert support, they can be a powerful advantage.
Want to Learn How Seller Concessions Can Work for You?
Whether you’re just starting your home search or getting ready to write an offer, we’re here to help.
Contact Best Option Mortgage today to:
Get pre-approved and understand your budget
Learn how seller concessions could lower your out-of-pocket costs
Partner with a team that knows how to make the most of every offer
Let’s make your homeownership journey smarter, simpler, and more affordable—starting now.
Best Option Mortgage is a DBA of ML Mortgage Corp. ML Mortgage Corp. is a state‑licensed mortgage lender, NMLS ID #362312, licensed by the CA Department of Financial Protection and Innovation under the Finance Lenders Law, License #60DBO69831. For other states, visit mlmortgage.net. To verify licenses, visit nmlsconsumeraccess.org. All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2025 ML Mortgage Corp. All rights reserved.