What Are Seller Concessions?
Author:
Victoria ArajOct 24, 2023
•7-minute read
*As of July 6, 2020, Rocket Mortgage® is no longer accepting USDA loan applications.
When buying a house, you pay closing costs and fees to cover the costs of getting the mortgage. Closing costs usually range from around 3% – 6% of the home price.
In some cases, you may be able to get the seller to pay for some of these closing costs. These are called seller concessions, and they can be a powerful way to save on your closing costs. Before you close on your mortgage, learn how to use seller concessions to your advantage.
Seller Concessions In Real Estate, Defined
Seller concessions are closing costs that the seller has agreed to pay. Sometimes, you can ask the seller to contribute to specific closing costs. Other times, sellers may simply pay a percentage of the total closing costs.What Closing Costs Do Seller Concessions Cover?The seller may be able to cover part or all of these closing costs:- Property taxes: Pre-paid property taxes through the end of the year at closing.
- Title insurance: Title insurance protects you and your lender if someone comes forth with a claim for the home’s title. <