What Are Seller Concessions in Real Estate?

If you’re preparing to sell your home, you may hear buyers ask for seller concessions. While it might sound like giving something up, seller concessions are a strategic tool that can help you close a deal faster—especially in a buyer’s market or slower season.

Here’s what seller concessions are, how they work, and when offering them makes sense.

Overview: Understanding Seller Concessions

Key Points:

1. What Seller Concessions Actually Are

2. What They Typically Cover

3. Why Buyers Ask for Them

4. How Concessions Impact Your Bottom Line

5. When Offering Concessions Can Help You Sell

1. What Seller Concessions Actually Are

Seller concessions are financial incentives or cost contributions offered by the seller to help the buyer close the deal. These are usually negotiated during the offer stage or in response to repair requests.

2. What They Typically Cover

Common concessions include:

Closing costs (lender fees, title insurance, etc.)
Home warranties
Repair credits
Prepaid taxes or HOA dues

In many cases, the seller agrees to pay a portion of the buyer’s closing costs in exchange for a strong offer.

3. Why Buyers Ask for Them

Buyers may request concessions to make the deal more affordable, especially if they’re low on cash after their down payment. It can also be a way to offset necessary repairs or help cover appraisal shortfalls.

4. How Concessions Impact Your Bottom Line

While concessions reduce the amount you take home at closing, they can also prevent a deal from falling apart. In slower markets, a small concession could mean the difference between closing a deal or relisting your home.

Example or Tip: If your home is priced right, a $5,000 concession could still result in a strong net return.

5. When Offering Concessions Can Help You Sell

Consider offering concessions if:

You’re in a buyer’s market with high competition
The buyer is well-qualified but short on cash
You want to keep the sale moving quickly
A home inspection reveals needed repairs

Conclusion

Seller concessions are a smart way to make your home more appealing and move a sale along. If used strategically, they can attract serious buyers and lead to a smoother, faster closing—without drastically impacting your net proceeds.

What Are Seller Concessions in Real Estate?