Seller Concessions Explained: What Home Buyers and Sellers Should Know
Seller Concessions Explained: What Home Buyers and Sellers Should Know
Buying or selling a home comes with a lot of moving parts. There’s the price, inspections, financing, closing costs, and plenty of negotiating along the way.
One term you may hear during the process is seller concessions.
It sounds a little complicated, but the idea is pretty simple. A seller concession is something a home seller agrees to provide to a buyer to help make the purchase work.
And these days, they’re fairly common.
According to a September 2026 report from Redfin, nearly 45% of homebuyers nationwide received some form of seller concession. In the Seattle metro area, it was even higher.
So, what exactly are seller concessions?
How do they work?
And are they a good idea?
Let’s break it down.
What Are Seller Concessions?
A seller concession is when the seller agrees to help cover certain costs or provide another benefit to the buyer as part of the home sale.
Think of it as another way to negotiate beyond just the purchase price.
For example, a buyer might love a $750,000 home but be concerned about the amount of cash they’ll need for closing costs.
Instead of lowering the price, the seller might agree to contribute $10,000 toward those costs.
The buyer gets help with an immediate expense, and the seller may be able to keep the agreed-upon purchase price.
The important thing to understand is that seller concessions aren’t usually cash handed directly to the buyer. They’re typically documented in the purchase agreement and applied toward eligible expenses through the closing process.
And both buyers and sellers must agree to the terms.
How Common Are Seller Concessions in Today’s Housing Market?
Seller concessions have become an important part of home sale negotiations, especially as higher homeownership costs have made affordability a challenge for many buyers.
Redfin’s September 18, 2026 report looked at concessions reported by its buyers’ agents during the three months ending August 31, 2026.
Here’s what it found:
Market | Percent of Sales With Seller Concessions |
United States / Nationally | 44.7% |
Seattle Metro | 48.5% |
Portland Metro | 54.5% |
Phoenix Metro | 67.4% |
San Francisco Metro | 18.6% |
Nationally, concessions increased from 42.6% a year earlier to 44.7%.
Interestingly, the Seattle metro area moved in the opposite direction.
Seller concessions were included in 48.5% of Seattle-area transactions, down from nearly 70% a year earlier.
But that doesn’t necessarily mean sellers were gaining the upper hand.
Redfin also found that 57% of Seattle-area homes sold below asking price during the same period.
In other words, buyers were still getting deals. They were just getting some of those savings through lower purchase prices instead of seller concessions.
Nationally speaking, Redfin has indicated 15.8% of transactions included both a price reduction and a seller concession.
An important note: These figures come from Redfin’s transaction sample, not every home sold. The Seattle metro figures also represent a broad region, not individual counties or neighborhoods. If you'd like more specific data or insights for your region or neighborhood, please feel free to reach out.
What’s Happening Locally in Snohomish, Skagit, and King Counties?
More homes on the market can give buyers additional choices and sometimes more room to negotiate.
According to the Northwest MLS September 2026 Market Snapshot:
Snohomish County’s active listings increased 44.2% compared with last year, September 2025.
King County’s active listings increased 31.1% over the same period.
Across the NWMLS service area (most of WA State), active listings increased 24.5%, while pending sales declined 15.1%.
That’s a meaningful change from the highly competitive market buyers experienced just a few years ago.
However, conditions can vary quite a bit between communities.
A well-priced, move-in-ready home in Mill Creek or Bothell might attract multiple interested buyers, while a home needing repairs in Everett, Mount Vernon, or another nearby community could offer more opportunities for negotiation.
The same is true for condominiums, new construction, and resale single-family homes. Each can behave differently.
The takeaway: Seller concessions are worth discussing, but whether they’re realistic depends on the area, the property and asking price, competing homes, buyer demand, and the seller’s situation.
What Can Seller Concessions Be Used For?
There isn’t just one type of seller concession. Here are some of the most common.
1. Help With Closing Costs
This is probably the most straightforward example. When buying a home, the purchase price isn’t the only expense. Buyers also face costs related to their mortgage and the closing process.
These might include:
Loan origination and lender fees
Appraisal expenses
Title and escrow charges
Certain prepaid property taxes and homeowners insurance costs
Mortgage discount points
A seller may agree to pay some of these eligible expenses through a credit at closing.
Example:
You’re buying a home for $750,000 and your lender estimates you’ll need $15,000 for eligible closing costs and prepaid expenses. You and your agent negotiate a $10,000 seller credit. So instead of paying the entire $15,000 yourself at closing, you would pay approximately $5,000 of those expenses.
You would still need to cover your required down payment and any other costs.
For buyers trying to hold onto savings for moving, repairs, or emergencies, this can make a big difference.
2. Help With Repairs After a Home Inspection
Let’s say the home inspection reveals an aging water heater, electrical concerns, or another repair issue. Instead of asking the seller to complete every repair before closing, the buyer might request a credit to help cover the work.
For example, the buyer and seller agree on an $8,000 credit related to identified repairs.
This can be helpful because the buyer may prefer to choose their own contractor and decide how to complete the work.
However, repair credits must be structured correctly. Some lenders require certain safety or property-condition issues to be fixed before closing. Others may not allow a proposed credit to be used in the way the buyer expects.
It’s important to discuss repair-related credits with the lender before finalizing an agreement.
3. Help Lower the Buyer’s Mortgage Interest Rate
Another option is using seller funds toward a mortgage rate buydown. A buydown can help reduce a buyer’s mortgage payments, either temporarily or for the life of the loan.
A common example is a 2-1 temporary rate buydown.
Let’s say a buyer receives a mortgage with a 6.5% note rate.
With a properly funded 2-1 buydown, the buyer’s effective payment rate might look like this:
First year: 4.5%
Second year: 5.5%
Third year and onward: 6.5%
The seller contributes money toward the cost of the buydown, and the buyer enjoys lower payments during the initial period.
The buyer must still be comfortable with the full payment once the temporary benefit ends. Loan qualification and program rules also apply.
A permanent rate buydown works differently. It involves paying discount points to obtain a lower interest rate that generally lasts for the life of the loan.
Which option makes sense depends on the buyer’s financing, how long they expect to own the home, and the actual cost of the buydown. Try this discount point calculator to see how discount points can impact a monthly mortgage payment and the cost of the loan over time.
4. Other Negotiated Benefits
Depending on the purchase agreement and financing rules, concessions or seller-paid incentives may also include:
An eligible home warranty
Certain prepaid HOA expenses
Agreed-upon appliance inclusions
Other costs or benefits negotiated between the parties
Not everything is automatically allowed under every mortgage program, so these details should be reviewed before either party agrees.
How Are Seller Concessions Negotiated?
Seller concessions can come up at different stages of a transaction.
Before an offer: A seller might actively market and promote that they’re willing to contribute toward a buyer’s closing costs or offer a rate buydown.
During the offer: A buyer might request a credit as part of their initial offer to purchase the home.
After an inspection: A buyer and seller may negotiate a repair, credit, or other solution based on inspection findings, subject to the contract terms.
Once both sides agree, the concession should be documented in the purchase agreement or an appropriate addendum.
The lender and closing team then review the terms to make sure the concession is allowed and properly reflected in the closing documents.
It’s important to remember that seller concessions are negotiable, not automatic. Neither side is required to agree to a proposed concession simply because the other asks.
Seller Concessions vs. Lowering the Purchase Price
Here’s where things get interesting. A lower purchase price and a seller credit can both help buyers, but they don’t provide the same financial benefit. Consider this example.
A homeowner receives two offers:
Offer A | Offer B | |
Purchase Price: | $800,000 | $790,000 |
Seller Credit: | $15,000 | $0 |
Amount Before Other Selling Costs: | $785,000 | $790,000 |
At first glance, Offer A looks better because the purchase price is $10,000 higher. But after the seller credit, Offer B actually leaves the seller with $5,000 more before other selling expenses.
Of course, there are other things to consider, including the buyer’s financing, appraisal, inspection terms, and ability to close.
For buyers, the better choice may depend on their situation.
A lower purchase price typically reduces the amount being financed and may save money over time.
A seller credit can reduce the amount of cash needed at closing. Neither is automatically better and will depend on the situation and other variables.
And here’s another detail worth understanding: Increasing the purchase price to include a seller credit only works if the lender allows the arrangement and the home’s appraised value supports the transaction.
Are Seller Concessions Good For Buyers?
They certainly can be. For some buyers, having enough money for the down payment isn’t the biggest challenge. It’s having enough left over for closing costs, moving expenses, and unexpected repairs. A seller concession can potentially help with this.
But buyers should be careful not to focus strictly on a credit. A $15,000 credit may sound great, but not if you’re paying substantially more for the home than it’s worth.
The goal isn’t simply to get the biggest concession possible, but rather to negotiate the best overall purchase terms for your financial situation.
Are Seller Concessions Good for Sellers?
Sometimes they can be a smart move. If your home has been on the market longer than expected, or buyers are concerned about higher interest rates or future repairs, offering a concession might incentivize enought interest and help attract an offer, or potentially multiple offers.
For example, you could offer a $10,000 closing cost credit rather than immediately reducing your asking price by $20,000. But this doesn’t mean every seller should advertise a credit.
Everyone's situation is a bit different. You should work closely with your real estate agent on the best strategy, as they should have the pulse of your local market, and the current dynamics.
In some cases, buyers would rather have a lower purchase price. In others, the home may be priced correctly and attracting enough interest that concessions aren’t necessary.
Sellers should also pay attention to their actual proceeds. For example, an $800,000 offer with a $15,000 credit is not the same as an $800,000 offer without a credit.
Before accepting an offer, it’s important to work with your agent and compare the estimated amount you’ll walk away with after concessions, commissions, taxes, and other selling expenses.
What About Builder Incentives on New Construction?
New-home builders frequently use incentives to help sell homes.
These may include closing cost assistance, mortgage rate buy-downs, upgrade packages, or price reductions.
According to the National Association of Home Builders, 66% of builders surveyed were using sales incentives in September 2026, while 38% reported reducing prices.
Those figures are national builder survey results, not local closed-sale concession rates.
For buyers comparing a newly built home with an existing home, it’s worth looking at the entire package rather than just the advertised interest rate or incentive amount.
Some builder incentives may require using a preferred lender or meeting other conditions.
Ask about the total purchase price, monthly payments, fees, and what happens after any temporary rate reduction expires.
Are There Limits on Seller Concessions?
Yes. And this is one area where it’s important to involve your mortgage lender early.
The amount a seller can contribute toward eligible buyer expenses depends on the mortgage program, loan structure, property type, and other rules.
For example, under Fannie Mae’s conventional mortgage guidelines, common limits for financing concessions on primary homes and second homes are:
3% when the buyer puts less than 10% down
6% when the buyer puts at least 10% but less than 25% down
9% when the buyer puts 25% or more down
Fannie Mae generally limits financing concessions on investment properties to 2%.
These percentages are based on the lower of the sale price or appraised value, and there are additional rules and exceptions.
FHA and VA loans have their own requirements. For example, the VA distinguishes between ordinary closing cost payments and certain other seller concessions when applying its 4% limit.
Also, buyers generally cannot use ordinary seller concessions to cover their required down payment or simply receive unused credit money as cash after closing.
The bottom line? Confirm the rules with your lender before negotiating a concession.
Frequently Asked Questions About Seller Concessions
1. Does a seller have to offer concessions?
No. Seller concessions are negotiable. The seller can agree, decline, or make a counteroffer.
2. When should a buyer ask for a seller concession?
Buyers can request concessions when submitting an offer. They may also negotiate them later, such as after an inspection, depending on the purchase agreement and applicable deadlines.
3. Can a seller offer concessions before receiving an offer?
Yes. A seller may choose to advertise closing cost assistance or another incentive to attract buyers. Whether that makes sense depends on local market conditions and the home’s pricing.
4. Can I use a seller concession for my down payment?
Generally, no. Standard seller credits toward closing costs cannot replace the down payment required by the buyer’s mortgage program. Special financing arrangements, such as qualifying gifts of equity, follow different rules.
5. Can a buyer receive unused seller concession money as cash?
Generally, no. Mortgage programs restrict how seller credits can be used. If the agreed credit is greater than eligible expenses, the parties may need to adjust the terms, if permitted, or some of the credit could go unused.
6. Is it better to get a seller concession or a lower price?
It depends.
If saving cash at closing is the biggest concern, an eligible seller credit might be helpful.
If reducing the mortgage balance and long-term borrowing costs is the priority, a lower purchase price might be better.
Ask your lender to compare both scenarios.
7. Does asking for concessions make my offer weaker?
It can, especially when a seller has multiple offers.
But sellers should evaluate the entire offer, including price, concessions, financing, contingencies, and closing timeline.
A well-structured offer with a concession may still be more attractive than another offer with a lower overall financial benefit.
8. Are seller concessions the same as paying the buyer’s real estate agent?
Not necessarily.
Seller-paid buyer brokerage compensation and seller credits toward closing costs are related negotiation topics, but they are not automatically the same thing.
Broker compensation is negotiable and should be clearly addressed in the appropriate agreements. Mortgage rules and how payments are structured also matter.
9. Are seller concessions common in Snohomish, Skagit, and King counties?
Seller concessions are certainly used throughout the Puget Sound region.
Redfin reported concessions in 48.5% of Seattle metro home sales in its August 2026 analysis.
However, that doesn’t mean 48.5% of homes in each individual county received concessions.
The frequency and amount can vary by neighborhood, home type, price range, and market conditions.
10. Can seller concessions affect the home’s appraisal?
They can be relevant to the appraisal and lender review.
An appraiser considers the transaction terms and comparable sales. A higher contract price paired with a large credit doesn’t guarantee that the home will appraise at that price.
That’s another reason to make sure a proposed concession works with the buyer’s financing.
Final Thoughts: It’s About Finding the Right Deal
Seller concessions can be a helpful tool for both home buyers and sellers.
For buyers, they may make a purchase more affordable upfront, help manage repair concerns, or reduce mortgage payments.
For sellers, they can help attract buyers, address concerns, and keep a transaction moving forward.
But they’re not always the best choice.
Sometimes a price adjustment makes more sense. Sometimes a seller repair is the better solution. And sometimes the smartest decision is to leave the terms alone.
The key is understanding what each option means financially and how it fits the local housing market.
A good real estate negotiation isn’t just about getting the highest price or the biggest credit.
It’s about finding terms that make sense for everyone involved.
Resources & Additional Reading
Want to learn more? Here are several reliable resources covering seller concessions, closing costs, and the housing market.
Redfin — Nearly Half of Homebuyers Get Concessions From Sellers (September 2026) — National and Seattle-area concession trends, with comparisons across major metropolitan markets.
Northwest Multiple Listing Service — Monthly Market Statistics — Housing market data for Snohomish, Skagit, King, and other Washington counties.
Consumer Financial Protection Bureau — Closing Disclosure Explained — Learn how seller credits and other transaction costs appear on your final mortgage paperwork.
Fannie Mae — Interested Party Contributions — Detailed rules on permissible contributions and financing concession limits for applicable conventional mortgages.
U.S. Department of Veterans Affairs — VA Closing Costs and Seller Concessions — Helpful information for buyers using VA home financing.
National Association of Home Builders — Housing Market Index — Monthly information about homebuilder conditions, incentives, and price reductions.
Have Questions About Seller Concessions in Your Local Market?
Whether you’re buying a home and wondering what you can reasonably negotiate, or selling and considering whether to offer a credit, the right approach depends on your specific property, finances, and local market conditions.
I’m a real estate broker with eXp Realty, serving Snohomish, Skagit, and north King county, including the greater Seattle metro area.
I can help you better understand current seller concession trends, evaluate offers, compare the financial impact of different strategies, and determine what may make the most sense for your situation.
Whether you’re buying, selling, or just exploring your options, I’m always happy to answer questions and offer straightforward, no-pressure guidance. Feel free to reach out any time here.
The information in this article is intended for general education only. Seller concessions, mortgage program requirements, and contract terms can vary. Consult your lender, real estate professional, attorney, or financial advisor regarding your specific situation.
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