What Are Seller Concessions In Real Estate?

Seller concessions
Seller concessions have become more prevalent in the current housing market.

There is no doubt that the real estate market has slowed down considerably over the past year. With this said, in many markets sellers are being forced to be more aggressive with their marketing and negotiating. For buyers, buying a home is an exciting yet daunting process regardless of the market. Between the hefty down payment, mortgage pre-approval, and endless paperwork, it’s easy to feel overwhelmed. But what if there was a way to lessen the financial burden and make the whole experience a little sweeter? Enter seller concessions.

What are seller concessions?

Seller concessions, also known as seller assists or contributions, are financial perks offered by the seller to incentivize buyers and make their offer more attractive. These perks come in various forms, but essentially, they involve the seller contributing to some of the buyer’s closing costs.

What can seller concessions cover?

Closing costs encompass various fees associated with finalizing a real estate transaction. Some common costs covered by seller concessions include:

  • Origination fees: The lender’s charge for processing your mortgage application.
  • Discount points: A one-time upfront payment that can lower your interest rate.
  • Title insurance: Protects you from any unexpected claims against the property’s ownership.
  • Appraisal fees: The cost of having the property professionally valued.
  • Escrow fees: Funds held in trust to cover future property taxes and homeowners insurance.
  • Home inspection fees: The cost of having a professional assess the property’s condition.

Why do sellers offer concessions?

There are several reasons why a seller might be willing to offer concessions:

  • Increase the appeal of their property: In a competitive market, concessions can make a seller’s listing stand out and attract more buyers.
  • Close the deal faster: By reducing the buyer’s upfront costs, concessions can encourage them to move forward with the purchase more quickly.
  • Negotiate a higher sale price: Sometimes, offering concessions can allow the seller to ask for a slightly higher purchase price, ultimately netting them the same amount of money.

When should you ask for seller concessions?

Not every situation warrants requesting seller concessions. Here are some factors to consider:

  • Market conditions: In a buyer’s market, where there are more houses than buyers, you’re more likely to have leverage to negotiate for concessions.
  • Property condition: If the home needs repairs or updates, you may have a stronger case for asking the seller to contribute to those costs.
  • Your financial situation: If you’re struggling to come up with the full amount of closing costs, concessions can be a helpful way to bridge the gap.

How to negotiate for seller concessions

Remember, negotiation is key when it comes to seller concessions. Here are some tips for getting the best deal:

  • Do your research: Know what typical closing costs are in your area and what concessions are commonly offered.
  • Be prepared to walk away: If the seller isn’t willing to budge on concessions, be prepared to walk away from the deal.
  • Work with a real estate agent: An experienced agent can help you navigate the negotiation process and advise you on the best strategy.


Seller concessions can be a valuable tool for buyers looking to save money and make the home buying process more affordable. By understanding what they are, when to ask for them, and how to negotiate effectively, you can increase your chances of getting the most out of your real estate transaction.

As always, it is important to have a local and knowledgeable real estate agent on your team. Are you looking to buy or sell real estate in South Florida? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your smartphone or tablet.

By natasha moore

REALTOR® with Live South Florida Realty, Inc.