What are seller concessions and should we offer them?
By Melissa Albert · October 26, 2026 · Living in Kentucky Team, eXp Realty · 6 min read
Short answer: a concession is money you contribute on the buyer's behalf, typically toward closing costs, a rate buy-down, or repairs from the inspection. Concessions are a normal negotiation tool, not a red flag, and the right one can save a deal while still protecting your net proceeds.
What a concession actually is
In practice, a concession is a credit at closing: the seller agrees to pay part of the buyer's costs, on top of the usual seller expenses. Buyers ask for them to make the purchase affordable, especially when their cash is mostly tied up in the down payment.
Common uses include closing costs like title fees and prepaids, a buy-down of the buyer's interest rate, a repair credit rather than fixing an item, or a contribution toward a needed appliance after the inspection.
Why a seller would offer one
A concession can save a deal that is stuck: the appraisal came in low, the buyer is short on cash, the inspection found a costly item, or the home simply needs to move faster. One credit can turn a question mark into a signed contract.
Compared to a price reduction, a concession often costs the seller less in the long run, because it applies to the buyer's closing costs rather than lowering the sale price that future buyers and appraisers see.
The honest trade-off
Every dollar of concession comes out of your net proceeds, so the number needs a reason. We review a concession request the same way we review every offer term, and we say no, plainly, when a request is not justified by the market or the terms.
The right framing is this: you are not giving something away. You are choosing the most efficient way to reach the closing table.
- Closing cost credits
- Interest rate buy-downs
- Repair credits instead of fixes
- HOA or moving cost contributions
Lender limits and the fine print
There are rules on how large a concession can be, tied to the buyer's loan program and down payment. A two percent credit is different from a five percent credit, and lenders cap them for a reason. The contract has to state the credit precisely, and the appraisal has to hold up at the adjusted value.
A concession is only real when it is written into the contract and survives to closing. An informal promise is worth nothing at the table, which is exactly why the negotiated terms are documented before you sign.
Concessions fit inside the 22-point offer review, the same structured look we give price, financing, and every contingency.
Should you offer one right away?
Rarely. Most sellers start without a blanket concession and offer one when the terms justify it: after an inspection, around an appraisal gap, or when a strong buyer needs a hand to cross the finish line. Starting from the lowest defensible position keeps room to negotiate, and every concession is weighed against exactly what it buys you at the table.
One caution: a concession is only as good as the terms around it. A credit attached to a weak financing contingency protects nothing, while the same credit on a solid, well-funded offer can be the difference between closing and relisting. Read the offer, not just the credit.
Want the real number for your home?
Send your address and we will run the same valuation we run for every listing: the comparables, the buyer reach, and an honest recommended range. Free, no obligation, and no follow-up pressure if the timing is not right.
Or call and text us directly at (270) 743-9975.