Should Home Buyers Ask for Seller Concession in a Seller’s Market?

Real Estate Broker/Owner with Cam Realty and Property Management

Should Home Buyers Ask for Seller Concession in a Seller’s Market?

Seller Concession is when the Buyer is asking for the Seller to pay all or part of their closing costs mostly associated with their mortgage. When a Buyer asks for a Seller Concession, it does not mean they do not have the Cash but simply means they(Buyers) don’t want to use the cash they have towards their closing costs. There are different ways to ask for the seller to pay part or all of the Buyer’s closing costs. How about asking for Seller concession in a Seller’s market?

In certain areas of Central Florida, listings receive multiple offers within the first couple of days of being on the market. If you are a Buyer putting an offer on a house in an area where there’s low inventory and high demand, it is a Seller’s Market and you have to keep in mind that you might be in a multiple offer situation.

For example, if the list price is $300,000 and you HAVE to ask for seller concession in the amount of $10,000, you might think about offering $310,000 including $10,000 towards Buyer’s closing costs. Your offer is over the list price by $20,000, however, $10,000 of that is to pay for your closing costs and Seller will still get $10,000 over the asking price. This is of course if you really want the house! Keep in mind, the home must appraise for the contract price unless you(the buyer) will be waving the appraisal contingency.
Offering below list price and asking for Seller concession will most likely result in “rejection of your offer”.
Prior to writing the offer, your Realtor should analyze the data of Active/Pending and Sold comps in the area including days on market, list price/sale price ratio, number of Cash transactions vs financing.
Real estate is very local, ask your Realtor whether it’s a sellers or buyers market and proceed accordingly. Don't give up if you don't win in a multiple offer situation, continue looking and making offers. There's a light at the end of the tunnel, however, your offer should be one that a seller will select. Show them the reason.

If you’re looking to buy or sell a home in Clermont, Minneola, Winter Garden areas, I would love the opportunity to speak with you. You could call me at 407-929-1852, email or visit my website at


Should Home Buyers Ask for Seller Concession in a Seller’s Market?



Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gita Bantwal 06/26/2018 05:00 AM
Home Buying
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Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

Thanks for the excellent and timely subject to share. The comments from others was also useful for me as a Mortgage lender.

Jun 22, 2018 07:22 AM #32
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude


Asking for concessions in our seller's market is an uphill battle unless you offer a comparable amount over asking. Even then, with multiple offers, I think the chances of acceptance are pretty slim. Congrats on the feature.


Jun 22, 2018 07:26 AM #33
Dennis J. Zisa & Associates, Inc.
Dennis J. Zisa & Associates, Inc. - Camden, NJ
28 years in So. Jersey and the Greater Camden area

Sellers are often hesitant to go with the "raise the price- allow seller concessions" scenareo for appraisal reasons. Even if the property is worth the increased contract price, there is always the potential of a "bad" (overly conservative) appraisal.

Jun 22, 2018 07:36 AM #34
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy


Congratulations on your well deserved star for this post.  What you suggesting is a wonderful way to work with the concept of seller concession.  Wishing you a super wonderful weekend. 

Jun 22, 2018 08:19 AM #35
Greg Mona
Faira Homes Corp - Scottsdale, AZ
Real Estate in the 21st Century!

Hi Beth Atalay. This is a very common occurrence in our local market, especially on the lower end of the pricing spectrum. We find that you still can get concessions to work, but to do so the seller needs to feel like they still "won". I realize that sounds bad when you read it, but it is a true statement. Some of the previous suggestions of offering enough over the asking price to cover the concessions and then some is a good route to take, but as you pointed out, there is the appraisal issue to overcome. There is no "one size fits all" answer for this situation. 

Jun 22, 2018 09:00 AM #36
Melissa Spittel
Coldwell Banker Residential Brokerage - Westminster, MD
"Achieving Results Together "

They can ask, but they need to be prepared for the possibility of rejection. Buyers need to listen to their agent's advice regarding the market, instead of listening to everyone else.

Jun 22, 2018 10:03 AM #37
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Back when I was an agent we often had to ask sellers to chip in on closing costs. We increased the offer by that much, but then the sellers - once they understood the concept - were concerned about being expected to pay a commission on those extra dollars. We had to write it so the commision was calculated on the price before the addition of closing costs.

Jun 22, 2018 10:46 AM #38
Doug Kaller
Academy Mortgage, Reno, NV - Reno, NV

Hi Beth, So many of the entry level buyers need some help from the seller in order to buy a home. Even though our market heavily favors sellers, my clients have success when asking for 1-1.5% in seller concessions. Often, the seller will agree. If the seller counters saying they won’t pay the concessions, my clients counter the counter adding the amount of the concession to their offer. Although we are sometimes outbid, this strategy works most of the time. For many, it’s the difference between becoming a homeowner or not.

Jun 22, 2018 12:07 PM #39
Dan Jasmer
Coldwell Banker Residential Real Estate - Sarasota, FL
Changing the way you look at real estate

So many factors to discuss with buyers and sellers when faced with this scenario. As you stated Beth, our advice and strategy is all dependent on the hyper local market at the time of offering. Great advice and explanation for buyers and sellers...and agents who haven’t had this experience. Thanks!

Jun 22, 2018 12:13 PM #40
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great timing for this blog.  Sellers rule the market and can be selective when receiving multiple offers.  Knowing the market is key when writing an offer for a buyer who needs closing cost assistance.  It's key to use an experienced agent who knows how to structure an offer!   Great post!

Jun 22, 2018 09:21 PM #41
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

In my market Sellers do not want to hear any contingencies and they get even annoyed when the buyer wants to make sure that they can deliver it with a Clear Title:))Endre

Jun 22, 2018 10:47 PM #42
Matthew Klinowski, PA
Downing-Frye - Naples, FL
Golf Community Real Estate Specialist

It's rare to do seller concessions in our market and it is usually associated with affordable housing.  Since there are typically multiple offers on low priced homes in our area, the buyers usually go for the cash offer.  It all really depends on your market. 

Jun 23, 2018 05:16 AM #43
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Beth Atalay,

I'm glad to see your post featured! Its a great question and I've seen some good answers. I agree with Michael Jacobs "it's important to know/ understand your local real estate market. Something that is considered "normal" or "customary"  in an area can be mis-interpreted in another."

Jun 23, 2018 06:28 AM #44
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Beth... there are ways to get seller concessions in a seller's market... the buyer just has to make it worthwhile for the seller. Each situation will be unique. It's just that in a seller's market buyers shouldn't consider seller concessions "a given."

Jun 23, 2018 08:30 AM #45
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Beth, this is a great informational post.

Buyers need to understand the market before they start asking for concessions.

With a financed deal, will the property appraise for the amount of their offer?

How much do they really want the house?

Are they prepared for a quick rejection of their offer?

This is why it is imperative for buyers to secure the services of a real estate agent that knows the market and how to present offers. Then they should heed the advice of the agent.

Thanks for a great post.

Jun 23, 2018 02:29 PM #46
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

This is a tough question, especially for those first time buyers.  They usually have enough for a DP and a few moving expenses--not all the escrow $$.

Jun 24, 2018 06:13 PM #47
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

When you represent the buyer, you need to be able to give the very best advice and information to your client.  They look to us to assist them.  If they need closing costs, we need to make sure that they are able to get the best terms available in the market.  And try to do our best to make sure that they get the house that they want.  Great post.

Jun 25, 2018 02:16 PM #48
Jake Donnelly
Liberty Home Mortgage - Independence, OH
Jake The Mortgage Guy - 440-781-8808

I think its a win win for both parties. If the seller has a certain "net" amount they have to take home....that number should always be met. Help the buyer out by increasing the purchase price to cover costs. 

Buyer is happy because it keeps money in their pocket...seller is happy because they get their net and sell their home for more! I think this should be taken into consideration on every contract. 


Make everyone happy!!!

Jun 26, 2018 07:06 AM #50
Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Find out what the seller wants and needs and give them what is important to THEM! You're so right, it absolutely CAN be worked out - you just have to know what is important to the sellers and go above and beyond with that to get your buyers' concessions! It's a great give-and-take!

Wonderful post, Beth! Happy Thursday!

Jun 28, 2018 08:44 AM #52
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Yes! Buyer's Agents should carefully counsel their buyers about asking sellers to pay closing costs and/or other concessions in a sellers market. It can make the difference of WINNING the bid and LOSING the house. You did a great job of explaining how to structure a winning offer.

Jul 11, 2018 03:09 PM #53
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Beth Atalay

Cam Realty of Clermont FL
Sell or Buy Homes in Clermont FL
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