Frequently Asked Questions About Seller Concessions

October 5th, 2023  / Author: Zachariah Peterson
Essential Guides

Buying a house is the most significant expense that most Americans experience in their life. Very few people are able to afford to pay in cash, so they opt for mortgages or other kinds of financing. However, they don’t realize that expenses await at every corner of the closing process. Seller’s concessions are the one thing that can help you manage all those closing costs you usually have to pay in cash.

It is important to know the market conditions and to understand the pros and cons of seller concessions before you include them in your offer. For starters, let’s explain what seller concessions are.

What are Seller Concessions?

Seller concessions are cost reductions that the seller agrees to pay for the buyer. There are many different costs associated with closing a sale, from taxes and fees to hiring experts to help you make the right decision.

Buyers often get overwhelmed with the amount of money they need to prepare on top of the down payment and a mortgage. So, when the market conditions allow, they can ask the seller to help them out in order to speed up the process and make a transaction sooner.

Depending on the deal the seller and the buyer make, a seller concession can be expressed in the form of one (or more) particular fees paid, or it can be a percentage of all closing costs. For example, a buyer can ask the seller to pay for an inspector to come and inspect the property. On the other hand, a buyer can say: ‘’Hey, I’ll pay for everything, and when all is set and done, you’ll pay 10%’’.

Closing Costs - What Are They and How Much Do They Cost?

It is a known fact that buying a house is a stressful process. Closing costs are one of those things that everyone dreads about buying a home—and it’s understandable why. They add up quickly, and if you don’t know what you’re doing, you might end up paying too much. But there are ways to minimize your closing costs, and seller concession is one of those ways.

The closing cost amount varies based on the type of property being purchased, the size of the down payment, and the number of items included in the purchase price. For example, homebuyers purchasing a single-family residence with a 20% down payment will pay less closing costs than buyers purchasing a multi-family building with no down payment.

Closing Costs That Sellers Can Cover

It is unlikely that the seller will be eager to pay for any closing costs in a saturated market. When there are a lot of potential buyers and a handful of properties, sellers have more control over the terms of the sale. However, seller concessions are more popular with decreasing demand. Here are some closing costs that sellers could be paying.

Discount points are essentially interest paid upfront to reduce the total cost of borrowing. For example, say you had $10,000 towards a down payment and closing costs. If you applied for a 5/25 ARM with 0.5 points, you’d pay $100 in discount points. You can make a deal with the seller to pay for discount points.

If there are not a lot of offers, the seller might be motivated to pay for your discount points so as to speed up the selling process. Seller concessions are entirely up to the seller’s goodwill. Consider the fact that discount points are completely optional fees and that it might be safer to ask the seller to cover more necessary expenses.

Title Search

Having the seller pay for a title search could save you a few hundred dollars. Real estate agents will often charge you an additional fee for a title search. You could also work with a lawyer to ensure everything is on the books and recorded correctly.

Title search in and of itself is not as expensive, especially if the search turns uneventful. This makes it one of the costs most likely to be covered by seller concessions, as it amounts from $50 to $200.

Appraisal Fees

An appraiser charges between $300 - $450 for each inspection. This includes preparing the report, reviewing it, writing up findings, and providing recommendations. Some appraisers offer additional services such as property valuation, home staging, interior design consultation, etc., depending on what you are looking to accomplish.

This could be a fair deal to ask the seller to cover, especially if they haven’t done a pre-sale appraisal. $300 out of the seller’s pocket could save you some money for remodeling later.


The inspection cost usually goes out of the buyer’s pocket. However, the cost of fixing the issues that come up during the inspection is on the seller. The two parties can agree on one of the two solutions - the seller might pay for the fixes themselves, or they can decrease the price for the cost of repairs.

Recording Fees

Real estate transactions require recording fees. Depending on the property type, a fee is charged for recording deeds. A deed is required to convey title to real estate. If you are buying or selling a home, it is important to understand what each party must pay for the transaction.

However, you might be able to work on a deal with the seller and have them pay for the whole amount. The recording cost is not as expensive, but it can add up to a couple of hundred dollars.

Seller Concessions: Bull vs Bear Market

Because there are several available houses that sellers are eager to sell, buyers have the advantage in a buyer's market - bear. Supply is higher than demand, therefore, buyers have an easier time persuading sellers to reduce their asking prices or agree on seller concessions. On the other hand, a seller's market occurs when there are more buyers than available houses to sell - bull.

Seller concessions are offered in both buyer's and seller's markets, but they are more common in buyer's markets. In a market where there are many sellers, a buyer who requests a seller concession may lose the home they want to another bidder who is willing to pay more.

Sell a Home Without Concessions

If you are currently selling a property in California, you might be thinking about agreeing to some concessions. To avoid paying closing costs for your buyer - contact SleeveUp Homes.

Not only that we offer $10,000 more than others - and guaranteed - but we also make it as easy as possible for you to sell your house without unnecessary fees. We want to help you upscale, so don’t be shy - request an offer today and see it for yourself!



If you want to sell fast and are worried about how long the traditional process takes, and the commission and fees involved, consider working with SleeveUp Homes.