Seller concessions refer to closing costs or other fees that the seller agrees to pay on the buyer’s behalf. These concessions are negotiated during the offer process and help make the purchase more affordable for the buyer, without reducing the home’s sale price.

Whether you’re a first-time homebuyer buying a home in Charlotte, NC, or a seasoned buyer buying a house in Atlanta, this Redfin guide breaks down seller concessions to help you navigate negotiations more confidently.

What are seller concessions in real estate?

Seller concessions are financial contributions made by the seller to reduce the buyer’s out-of-pocket expenses at closing. These costs can include lender fees, taxes, insurance, or even home warranties.

For example, a buyer might ask the seller to pay $5,000 toward their closing costs. If agreed, this would be included in the contract and deducted from the seller’s proceeds at closing.

What can seller concessions cover?

Concessions typically include:

Title insurance Appraisal or inspection fees Loan origination charges Recording or attorney fees Prepaid property taxes or insurance Mortgage points (to lower the buyer’s interest rate) HOA transfer or document fees A home warranty plan Lenders limit how much sellers can contribute, depending on the type of mortgage involved.

Why do sellers offer concessions?

Sellers might agree to concessions to:

Help a buyer afford the home Attract more offers in a slow market Offset issues found during the home inspection Speed up the closing timeline In a buyer’s market or when a home has been sitting for a while, concessions can make the difference between closing a deal and continuing to wait.

Seller concession limits by loan type

Loan Type Max Seller Contribution Conventional (