How to Get Sellers to Pay Your Closing Costs

Seller concessions are a secret weapon for buyers with limited cash. Instead of negotiating the purchase price down, you negotiate for the seller to cover a chunk of your closing costs. Done right, it can save you thousands at the closing table.

How Seller Concessions Work

The seller agrees to pay a percentage of your closing costs. This gets written into the purchase agreement as a credit to you at closing. You bring less cash; the seller nets less proceeds. Simple trade.

How Much Can a Seller Contribute?

There are limits based on your down payment:

• Less than 10% down: Seller can contribute up to 3% of purchase price
• 10% to 25% down: Seller can contribute up to 6%
• More than 25% down: Seller can contribute up to 9%
• VA loans: Seller can pay up to 4% in concessions (plus the VA funding fee)

On a $350,000 home with 5% down, the seller could cover up to $10,500 in closing costs.

When to Ask and How to Frame It

Ask during initial negotiations, not after you're under contract. Frame it as a win-win: you preserve your savings for emergencies, the seller gets a clean deal. In a buyer's market or with slow-moving properties, concessions are table stakes.

In a hot seller's market, don't push too hard. A seller with multiple offers will pick the cleanest one. Offer full price with a 3% concession request instead of asking for a price reduction.

What Concessions Can Cover

Almost any closing cost: lender fees, title insurance, escrow, prepaid taxes, discount points. Some lenders limit how much can go toward prepaids and escrows, so confirm with your loan officer.

Negotiating seller concessions is standard practice. Don't be shy. The worst they can say is no.