What is a seller concession and how does it help me?

A seller concession is money the seller agrees to put toward your closing costs as part of the deal. Instead of cutting the price, the seller credits you a set amount – say $10,000 – which you apply to closing costs, prepaid taxes and insurance, or even a rate buydown. This is useful when you have enough for the down payment but are tight on the cash needed to close. There are limits on how much sellers can contribute, varying by loan type and your down payment. Concessions are easier to negotiate in slower markets where sellers want to close. Keep in mind a concession doesn't reduce your loan balance the way a price cut does, so weigh whether you need cash help now or a lower long-term payment more.