Should You Ask for Seller Concessions? (And How to Do It Right)

Buying your first home is exciting, but it can also feel like a never-ending list of fees, add-ons, and surprise costs you didn’t see coming. That’s where seller concessions come in. If you’ve never heard the term, don’t worry. Most first-time buyers haven’t, until they’re already knee-deep in the process.

In this guide, we’ll break down exactly what seller concessions are, when you should (and shouldn’t) ask for them, and how to negotiate the right way.

What Are Seller Concessions?

At the simplest level, seller concessions are when the seller agrees to cover some of your upfront costs to close the deal. Instead of you paying out of pocket, the seller chips in.

Concessions don’t usually lower the price of the home itself — instead, they reduce the amount of money you need to bring to the table at closing.

Common examples of seller concessions:

• Closing costs: Origination fees, title fees, appraisal fees, or credit report fees.

• Prepaid expenses: Upfront property taxes or homeowner’s insurance.

• Repairs: Money set aside to fix issues uncovered during inspection.

• Home warranty: A one-year warranty that covers major systems/appliances.

Think of it as a financial assist from the seller to make the purchase more affordable for you.

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When Should You Ask for Seller Concessions?

Seller concessions aren’t always on the table, and they depend heavily on the type of market you’re in and the seller’s motivation.

Here are some situations where it makes sense to ask:

1. Buyer’s Market

If homes in your area are sitting on the market longer, sellers are more willing to negotiate. Asking for help with closing costs could give your offer an edge without lowering the list price.

2. After an Inspection

If your inspection turns up needed repairs, you can request that the seller either fix the issues or give you money back at closing. Many buyers prefer concessions here since they can decide how and when to make the repairs themselves.

3. When You’re Stretching Your Budget

If you’ve saved for the down payment but are worried about closing costs, concessions can make the numbers work. This is especially helpful for first-time buyers who don’t have much cash left over after the initial deposit.

4. When the Seller Is Motivated

If the seller has already bought another home, relocated for a job, or is on a tight timeline, they may be more open to offering concessions to move the deal forward quickly.

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How to Ask for Seller Concessions (The Right Way)

Like most parts of real estate, asking for concessions is a negotiation. Here’s how to do it smartly:

1. Work With Your Agent

Your real estate agent will know how much flexibility exists in your local market and can frame the request in a way that doesn’t scare off the seller.

2. Be Specific

Instead of saying “we’d like some help with fees,” specify:

• “$5,000 toward buyer’s closing costs,” or

• “Seller to cover one year of homeowner’s insurance.”

Clarity makes it easier for the seller to agree.

3. Use the Inspection as Leverage

If the home needs a new water heater or has a cracked window, it’s reasonable to ask for concessions instead of repairs. Sellers often prefer to credit you at closing rather than manage fixes themselves.

4. Know the Limits

Some mortgages put a cap on how much a seller can contribute:

• Conventional: usually 3–6% of the purchase price, depending on your down payment.

• FHA: up to 6%.

• VA: typically up to 4%.

Check with your lender so you don’t request more than is allowed.

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Pros and Cons of Seller Concessions

Before you decide to ask, weigh the upsides and potential drawbacks.

✅ Pros

• Lower upfront costs: You’ll need less cash at closing.

• Flexibility: You decide how to allocate the credit (closing costs, repairs, etc.).

• More affordable entry point: Can make a home purchase possible sooner.

❌ Cons

• Less appealing in hot markets: Sellers with multiple offers are less likely to agree.

• Impact on negotiations: Asking for too much could risk losing the deal.

• Loan limits: You can’t always use concessions for everything — lenders set restrictions.

The Bottom Line

Seller concessions aren’t a secret hack — but they are an underused tool that can make homeownership more affordable for first-time buyers. The key is knowing when to ask and how to ask without making your offer weaker.

If you’re just starting your home search, keep concessions in mind as part of your strategy. And if you’re already in the thick of it, talk to your agent about whether they make sense for your specific situation.

Buying a home is already expensive enough — you don’t have to shoulder all the upfront costs alone.

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Quick FAQ

Do seller concessions lower my monthly payment?

Not directly. They reduce your upfront costs at closing, not the price of the home or your mortgage payment.

Can I use concessions for my down payment?

No — concessions can only go toward certain closing costs and fees, not your required down payment.

Are concessions common?

Yes, especially in slower markets or when inspection issues come up. They’re less common in competitive bidding situations.

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⚡ At Entitled, we’re here to make confusing terms like “seller concessions” easy to understand. We’ll help you figure out what’s negotiable and what’s not — so you can feel confident in your first home purchase.