Seller Concessions is basically a fancy word for seller-paid closing costs.
This is when you’re writing an Offer to Purchase on a home, and you ask the seller to pay a portion of your closing costs. Now, you can’t just write into your Offer to Purchase, “Pay my closing costs.” You have to put a specific amount.
For example, say you offer the seller $100,000 for the property and you ask them to concede $3,000 in seller-paid closing costs. In this example, you would show up to the closing with $3,000 less out-of-pocket and the seller would net $97,000. They might not be okay with that. They might have wanted to net $100,000.
That’s okay, you still have options! You could always offer them $103,000 for the property, but still ask them to pay that $3,000 in closing costs.
In that situation, you would still show up to closing with $3,000 less cash out-of-pocket, and the seller would be made whole because they would net $100,000.
And that is Seller Concessions.