Money the seller agrees to credit toward your closing costs at closing. A common tool in slower markets and when buyers need help with cash to close.
A seller concession is an amount the seller agrees to credit toward your closing costs as part of the purchase contract. Instead of asking for a price reduction, you ask the seller to help with your closing costs.
Why it matters: many buyers have enough for the down payment but not much else. A seller concession lets you keep cash for moving, furniture, or just emergency reserves while still closing on the home.
There are limits, set by your loan program. Conventional caps concessions at 3% with under 10% down, up to 9% with 25%+ down. FHA caps at 6%. VA caps at 4%. The seller can't credit you more than your actual closing costs — leftover funds don't come back to you.
Example
You're buying a $400K home and your closing costs are $12,000. You negotiate a $10,000 seller concession in the contract. The seller still nets $390K but you only bring $2,000 to closing instead of $12,000 — huge cash flow help.
Also known as
seller credit, seller-paid closing costs, seller help