Seller concessions
Money the seller agrees to put toward the buyer's closing costs, prepaid items or rate buydown. Loan programs cap how much a seller can contribute.
Also called: seller credit, seller contributions, seller-paid closing costs, concessions
Related terms
An amount subtracted from what the buyer owes at closing, often agreed to instead of doing repairs. Lenders limit credits to actual closing costs, so they cannot be paid out as cash.
Fees and charges paid at closing on top of the price, such as lender fees, title insurance, recording fees, taxes and prepaid items. Buyers often pay around 2% to 5% of the price; sellers pay their own set of costs.
Paying money upfront to lower a loan's interest rate, either for the full term or temporarily for the first year or two. Sellers and builders often pay for buydowns as a concession.
A written list from the buyer, after inspection, asking the seller to fix items, give a credit or lower the price. The seller can agree, refuse or counter.
A reply to an offer that changes one or more terms, such as price or closing date. A counteroffer rejects the original offer, and the other side can accept, reject or counter again.