What is a seller concession?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A seller concession is money the seller agrees to credit toward your closing costs, prepaids, or rate buydown. It lets you keep more cash by rolling costs into the deal rather than paying them out of pocket.
Limits vary by loan: FHA allows up to 6%, conventional 3% to 9% depending on down payment, and VA up to 4% plus all closing costs. We negotiate concessions into your offer to lower your cash to close.
How seller concessions work
A seller concession is money the seller puts toward your closing costs. It lowers the cash you bring to the table. The price stays the same; the seller just covers some fees.
Loan programs cap how much a seller can give. The limit depends on your loan type and down payment.
Using concessions in Florida
In a balanced or slow market, sellers often agree to concessions. It can be the difference between closing now and waiting. We negotiate them into your offer.
Tell us your cash situation up front. We will structure an offer that asks for the right concession without scaring the seller.