People ask me this all the time: “How do you actually structure a purchase offer that includes seller concessions without killing the deal?” Real talk — most buyers have no idea what seller concessions are, how to ask for them, or how to use them without blowing up their shot at the house. But if used correctly, seller concessions can help cover closing costs, pay down interest rates (yep, that’s a thing), or even handle repairs, saving you thousands. So let’s walk through how to structure a purchase offer that includes seller concessions and — more importantly — how to negotiate those concessions like a pro.
What Are Seller Concessions?
Seller concessions are when the seller agrees to pay for some of the buyer’s closing costs or fees. It’s basically money back in your pocket — or more accurately, money you don’t need to bring to the table when you close. They’re not shady, they’re not rare, and they’re totally normal — if you know how to ask.
Why Would a Seller Agree to Concessions?
Because they want sold as much as you want bought. Simple as that. The longer a home sits on the market, the less attractive it looks. Even a couple percent off the top to cover your closing costs may get them to their goal quicker.
Some solid reasons a seller might agree:
- They’ve had the home listed for too long
- They’re relocating and need a fast close
- The market’s cooled and they want action
- Your offer is solid, and you’re close to their number
Bottom line — if their goal is to close quickly, they may roll with it.
How to Structure a Purchase Offer That Includes Seller Concessions
Before you ask for anything, get your numbers tight. That means knowing:
- How much cash you’ve got to close
- The average closing costs in your state (2% to 5% is common)
- What repairs might be coming
Here’s the 5-step structure that works almost every time:
1. Offer Their Number (or Close To It)
You need to give to get. If you’re asking for seller concessions, don’t lowball them hard.
Example: If the home is listed at $300,000, you might offer $305,000 and ask for $5,000 in concessions. They still walk away with what they wanted.
2. Spell It Out Clearly
Don’t make the agent guess. In your offer, write:“Buyer to receive $X in seller-paid closing costs to be applied toward allowable closing/prepaid items, including lender fees, title charges, escrows, etc.” This makes it clean for their agent, easy for their lender, and it shows you know what’s up.
3. Set a Cap Based on Loan Type
Each loan type has limits on seller-paid costs:
| Loan Type | Max Seller Concessions |
|---|---|
| FHA | 6% |
| VA | 4% |
| Conventional (owner occupied, under 10% down) | 3% |
| Conventional (owner occupied, 10–25% down) | 6% |
| Conventional (owner occupied, 25%+ down) | 9% |
Keep that in mind — ask too much and underwriting will kick it back.
4. Explain the Why
This isn’t mandatory, but it’s human. Tell them why you’re asking. “Hey, we’re tight on cash and want to keep reserves for emergency repairs,” or “We love the place but need this help to close strong.” A smart agent passes that emotion along to the seller. Sometimes, that’s the thing that tips it in your favor.
5. Your Agent Matters A LOT
Negotiating seller concessions isn’t about game-playing. It’s pairing great communication with a clean offer. If your real estate agent’s not used to this stuff, it’s gonna get fumbled.
Work with someone who does volume, knows how to negotiate seller concessions, and is confident on the delivery. They should know the local norms — each market’s different.
Story Time: $7K Seller Credit Win
One of my buyers in Cleveland was buying a duplex listed at $250,000. He loved it. Cash-flowed solid, needed light repairs.
We offered $255,000 with a $7,000 seller concession. His mortgage could absorb the price bump, and he used the credit to pay all closing costs.
Seller’s net was still strong, and my buyer barely touched his savings. Everyone won, and we closed in under 30 days.
That’s how you structure a purchase offer that includes seller concessions like a pro.
Common Mistakes When Asking for Seller Concessions
- Asking for too much without raising offer price
- Making it sound like the seller is eating the cost (they’re not, really)
- Poorly written terms in the offer
- Agent doesn’t present the request right
- You ask in a hot market with no justification
FAQs
Can I ask for seller concessions on new construction?
100%. Builders offer them all the time, but they’ll push you to use their preferred lender in exchange. Still worth exploring.
Will asking for concessions hurt my chances?
Depends on your offer’s total package. If you’re lowballing and asking for concessions, yeah, it’s gonna get rejected. But if your price is strong, they’ll listen.
Do seller concessions affect appraisals?
Only if you bump the price to offset them. If the home doesn’t appraise high enough, concessions might get reduced or canceled.
What’s better – lowering the price or asking for concessions?
If you need cash in hand at closing, go for concessions. Dropping the price saves a few bucks monthly, but concessions save you thousands now.
Can I ask for both a price cut and concessions?
You can ask for anything. But smart strategy says ask for one — or package it so it makes sense. Your agent can help you time and position it well.
The Bottom Line
Seller concessions are a powerful tool — but only if you know how to use them right. By structuring your offer smartly, being clear in your ask, and working with an agent who knows the game, you can walk into closing with more cash in your pocket and a solid deal for everyone involved. It’s not about getting over on the seller — it’s about creating a win-win. Do it right, and you could save thousands without losing the house you love.