Homebuyer Hacks: How to Get Sellers to Pay Your Closing Costs

Understanding Seller Concessions: What Every Homebuyer Should Know

Seller concessions is money a home seller agrees to give to cover costs on behalf of the buyer to help close the deal. These can significantly lower your upfront costs and even your long-term payments. Many buyers miss out because they don’t realize what’s possible. If you want to save real money, remember: If you don’t ask, you don’t get.

Common seller concessions include:

• Paying some or all of your closing costs
• Covering rate buy-downs (to get a lower mortgage rate)
  

Why Negotiation Matters More Than Ever in 2025

Today’s real estate market gives buyers leverage they haven’t seen in years. Homes aren’t flying off the market like they did in the frenzy of 2020 and 2021, which means there’s more room to ask for seller help. Waiting around for lower interest rates could keep you on the sidelines for too long. Don’t wait. Negotiate now.

The Role of Your Real Estate Agent and Lender

Not every agent or lender will walk you through every trick to cut your costs. Some might not even know the latest rules on seller concessions, or may be new to the industry. Take control by asking questions and making your priorities known. Working with a mortgage team that knows the ins and outs of these programs, can help you save thousands. My team can help you in 50 states and we LOVE helping buyers win so hit us up via text or call at (786) 933-2077.

Seller Payment of Your Real Estate Agent Commission: The Overlooked Bonus

Many buyers aren’t aware that sellers can pay the buyer’s real estate agent commission, and as I type this in about 90% of the country, this is still the norm. It even falls outside of seller concessions caps for closing costs which means you can ask the seller to pay your realtor and cover your closing costs. Make sure you talk to your real estate agent about asking the seller to pay their commission in your offer. It’s another way to keep your finances healthy post-closing.

Conventional Loans: What You Can Negotiate

Conventional loans are the most commonly used mortgage product. Conventional loans allow down payments ranging from 3% to 20%+. Each down payment bracket has its own seller concession limits:

• Less than 10% down: You can ask for up to 3% of the purchase price to be paid by the seller towards your closing costs.
• 10% down or more: You can ask for up to 6%.

For example, buying a $500,000 home with 5% down means you could ask for $15,000 in seller-paid closing costs. With 10% down, that jumps to $30,000.

If you negotiate too much and the credit isn’t fully used (for example, if there are only $26,000 in allowable closing costs and you got $30,000 from the seller), that extra $4,000 doesn’t go back to you—it returns to the seller. Consult your lender to match your needs exactly, so nothing gets left on the table.

*If you are buying an investment property, meaning you will not live there and plan to rent it out, there is a 2% max seller concession regardless of how much you put down.

How to Maximize Seller Concessions with Conventional Loans

Conventional loan seller concessions follow strict guidelines on what they can cover. Here’s what you can use them for:

• Closing costs 
• Rate buy-down fees (to lower your mortgage interest)
• Property taxes and insurance (but only up to the amount due at closing)
• Prepaid interest
  

FHA Loans: More Generous

FHA loans have a minimum down payment of 3.5% and offer even more help for buyers needing support with upfront costs. No matter how much you put down, you can ask for 6% of the purchase price in seller concessions—more generous than conventional loans.

One extra benefit: if you end up with leftover seller credit (after closing costs and buying down your rate), a small portion can be used to reduce your principal. This lowers your loan amount slightly, shrinking your monthly payment from day one. 

For buyers who can’t get enough closing cost help from the seller to close the deal with a conventional loan, switching to FHA could make the math work for your budget. I have done this with clients buying in the $100,000 range who are doing 3% down as often the 3% conventional allows is not enough to get them home. It is all about what works best for your unique situation. 

Loan Type: FHA

Minimum Down: 3.5%

Seller Concession Limit: 6% (regardless of down payment)

FHA Seller Concessions: What Can the Seller Pay?

You can ask the seller to cover:

• Closing costs 
• Rate buy-down fees (to lower your mortgage interest)
• Property taxes and insurance (but only up to the amount due at closing)
• Prepaid interest

Unlike conventional unused credit can often be used to go towards a one time principal reduction.  You still would need to pay the minimum 3.5% down. 

VA Loans: The Best Seller Concession Benefits

I am so passionate about VA Concessions I actually wrote an article urging conventional and FHA rule makers to rewrite their guidelines to match VA as it truly is an amazing benefit. VA loans stand alone when it comes to helping buyers save money and get into a home. Seller-paid benefits include:

• ALL Closing costs
• Rate buy-downs (to reduce your interest rate) AND
• Up to 4% of the purchase price towards paying off your debts (think credit cards, car loans)

For veterans and eligible military, this program is designed to help you walk into your new home with a clean slate and lower monthly bills. I think this is an amazing guideline. For info on VA check out my free VA Course

New Construction vs. Older Homes: Negotiation Opportunities

New construction homes often advertise fixed seller-paid closing cost amounts (like $10,000). Many buyers mistakenly think only new homes offer these perks. In reality, sellers of older homes are often just as willing to negotiate, especially when competing with shiny new builds.

Don’t let list price language scare you off. If a home advertises $5,000 in concessions, that’s a starting point—not the ceiling. Ask for what you need, even if that’s more than what’s in the ad. Sellers may surprise you, and asking costs nothing. Remember, if you don’t ask you don’t get. 

Negotiation Tips:

• Use market data to justify your offer.
• Prioritize features you care about - yard size, location, layout.
• Ask for maximum seller-paid closing costs, even on older homes.
• Use your agent to communicate all your asks clearly.
• HAVE FUN
  

Understanding Housing Prices and Seller Motivations

The house “list price” is not always rooted in hard market value. Some sellers set high, “aspirational” prices hoping for the best, which can backfire. An overpriced home may sit for months unsold, giving you room for negotiation. Your best resource to see if a list price is real or dreaming, is looking at recent comparable sales, not the sticker price.

Ask your agent:

• What did similar homes recently sell for?
• How long have nearby homes been on the market?
• Is this list price above or below average for the area?
• How motivated is the seller? MOTIVATION IS SO IMPORTANT
  

How to Approach Negotiations to Maximize Savings

Find a house you’d be happy to stay in for at least 3-5 years. After that, focus on getting monthly payments you’re comfortable with. Every dollar you save at closing is a dollar you keep in your pocket. Use seller concessions to reduce upfront cash requirements and ask for them to buy down your rate for extra long-term savings. Aim to have cash left after closing for any surprise repairs or expenses.

Negotiation Priorities Checklist:

• Purchase price
• Requesting closing cost coverage
• Asking for a rate buy-down 
• Getting the agent’s commission covered
• We always go over with our clients how much they can ask for etc…

Why You Should Always Ask for Closing Costs

Don’t believe the myth that it’s “greedy” or unnecessary to ask the seller to pay your closing costs. Even if you can technically cover them, having money left over spares you stress and cushions you against emergencies. Many buyers save thousands simply by making the ask. Ask for everything you can, because the current market trend in many portions of the country is in your favor.

Tips for Working with Your Lender to Maximize Seller Concessions

Loop your lender in early when you negotiate for credits. Lenders can confirm exactly how much you’ll need for closing costs, what concessions can cover, and what limits apply. Stay in close contact during your purchase so you use every dollar you’ve negotiated for. We love talking about closing costs credits and strategy so if you want a lender on your side give us a call 786-933-2077

How Seller Concessions Can Help You Buy Now Without Waiting

Don’t let uncertainty about interest rates leave you stuck. By negotiating seller concessions, you can cut both your upfront and monthly costs and start building equity now. Buyers right now have unique power to save—if they just ask. Negotiate smart, buy sooner, and save money.

Common Seller Concession Terms

• Seller Concessions / Credits: Money provided by the seller to cover your costs.
• Closing Costs: Fees for processing, title, escrow, insurance, taxes, and lender fees.
• Rate Buy-Down: Extra payment at closing to permanently or temporarily lower your interest rate.
• Agent Commission: Payment to the buyer’s real estate agent, often covered by the seller in today’s MLS listings.

In today’s market, informed buyers save the most. Knowing how seller concessions work—and how to ask for them - can put you a big step closer to a home you’ll love, with money saved for what matters most.

If you want expert help, we are here for you and can help you in all 50 states.

Call/text: 786-933-2077
Get Preapproved: www.zerostressmortgage.com
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Homebuying should work for you, not against you. Get every dollar you deserve in your next purchase.

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