What is a seller concession?
A seller concession is a contract term where the seller credits part of their proceeds toward the buyer's closing costs at closing. It lowers the buyer's cash to close rather than the price, and each loan program caps how much a seller can contribute.
A seller concession — a seller credit — is a term in the purchase contract where the seller agrees to put part of their sale proceeds toward the buyer's closing costs at the closing table.
What it changes — and what it doesn't
It doesn't lower the price on paper; it lowers the cash the buyer must bring. For the seller, the math is net proceeds: a higher price with a credit can net the same as a lower clean price. For a financed buyer, cash preserved at closing is often worth more than the equivalent price cut — which is exactly why this tool exists.
The guardrails
Each loan program caps how much a seller can contribute — your lender confirms the ceiling for your loan. The appraisal has to support the contract price. And credits offset actual costs at closing; they don't come back to the buyer as cash.
Definition versus strategy
That's the definition. The craft is in when and how to ask — market leverage, framing, the right amount — which is covered in can the seller help pay my closing costs. Where the credit actually lands sits inside the buyer's closing-cost picture, and it's a useful lever when offering below asking isn't the sharpest available move.
If you're buying on a tight cash budget — or selling and weighing whether to offer one — this term deserves a real strategy conversation. It moves real money at the table.
This answer is general education, not legal, tax, or financial advice. Your situation is unique — let's talk through the specifics together.