Yes. A seller can sometimes agree to pay part of a buyer’s allowable closing costs.
This is often called a seller concession or seller assist.
It is not automatic, and a seller is not required to agree. Whether a seller contribution is possible—and whether it makes sense—depends on the transaction, the loan program, lender requirements, the appraisal, the purchase price and the overall negotiation.
What Does a Seller Concession Mean?
A seller concession is an agreement for the seller to contribute toward certain closing costs the buyer is allowed to have paid through the transaction.
People may also call it a seller assist or describe it as the seller paying buyer closing costs.
The contribution is written into the offer and becomes one of the terms the buyer and seller negotiate. It does not mean the seller is responsible for every cost, and it does not mean every expense can be covered this way.
Why Might a Buyer Ask for a Seller Assist?
Buying a home involves more than the down payment. A buyer may also need cash for lender charges, title and closing expenses, prepaid taxes or insurance, inspections, moving and other costs.
A seller contribution may help an eligible buyer use less of their available cash for allowable closing costs. That can matter when the buyer wants to keep funds available for moving, repairs or reserves after settlement.
The buyer’s lender should confirm which costs may be covered and how the contribution would affect the financing.
Why Might a Seller Agree?
A seller looks at the entire offer—not just one term.
Purchase price, seller contribution, financing, inspections, settlement timing and other terms can all affect how an offer works for the seller.
A seller might agree to a contribution when the overall offer still fits their goals. They may also decline it or negotiate a different structure.
The important point is that a seller concession is negotiated. It is not something a buyer can assume will be available.
Purchase Price and Seller Contribution Are Separate Terms
A seller contribution does not simply mean the seller is giving away money without considering the rest of the offer.
The purchase price and the requested contribution are separate parts of the negotiation. A seller will usually consider what the offer may leave them after the agreed contribution and other transaction costs.
A buyer may try to structure the price and seller assist together, but the home still has to support the transaction. The appraisal, financing and lender requirements may affect what can work.
That is why it helps to understand how an offer is structured before choosing a number or asking for a concession.
Your Loan Program and Lender Matter
Loan programs can have different rules about seller concessions, including what the money may be used for and how much may be permitted.
The lender may also need to consider the buyer’s down payment, the property, the purchase price, the appraisal and other details of the loan.
Before an offer is written, the buyer should ask their lender:
- Is a seller concession permitted with this loan?
- Which closing costs may it cover?
- Is there a limit for this transaction?
- Could the requested contribution affect the loan or appraisal?
- How would it change the buyer’s estimated cash needed at settlement?
I am a Realtor®, not a mortgage lender. I can help explain the real estate terms and how they fit into an offer, while the buyer’s lender confirms the financing rules and numbers.
Can a Seller Pay My Closing Costs?
Sometimes—but the answer depends on the specific home, offer, financing and negotiation.
If you are a Philadelphia home buyer, or you are buying in Montgomery or Bucks County, start by understanding the full amount of cash you may need and what your lender permits. Then you can decide whether requesting a seller concession belongs in your offer.
The Buying a Home resource explains the larger process in plain English.
If you are trying to understand how purchase price, home buyer closing costs, seller concessions and your available cash fit together, start with the questions. Jess Carpenter can help you understand the real estate side of the options before you make a decision.