closing
seller concession
A seller concession is a cost the seller agrees to pay on the buyer's behalf, such as closing costs, prepaid items, discount points, repairs, or, after the NAR settlement, part of the buyer's broker fee. It appears as a credit to the buyer and a debit to the seller on the closing statement. Loan programs limit how much a seller may contribute, often as a percentage of price.
- Exam tip
- Concessions are capped by loan program rules. On the closing statement, they are a debit to the seller and a credit to the buyer.
- Example
- A buyer offers full price of $300,000 if the seller pays $9,000 toward closing costs. The seller agrees, and the buyer receives a $9,000 credit at closing.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23