seller concessions

Definition

When sellers agree to pay some of the buyer's closing costs, essentially discounting the price through the back door. A negotiation tactic that makes everyone feel like they won when really they just moved money between different piles.

Example Usage

The buyer negotiated $8,000 in seller concessions to cover closing costs rather than lowering the purchase price.

Origin

Real estate negotiation terminology that became common in the 1980s

Fun Fact

Lenders typically cap seller concessions at 3-9% of the purchase price depending on the loan type and down payment.

Source: Real estate transaction terminology

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