How Seller Concessions Can Lower Your Homebuying Costs?

Buying a home comes with more upfront costs than most first-time buyers expect. Between the down payment, inspections, title fees, insurance, and the dreaded closing costs, it’s easy to feel like you’re writing checks left and right.

But here’s a tactic not everyone talks about: seller concessions. If you know how to use them right, you could save thousands on your total upfront costs - without overpaying or complicating your loan.

• Seller concessions are a powerful way to reduce your closing costs.
• They can cover prepaid taxes, homeowners insurance, title fees, and more.
• All loan types may allow seller concessions not just VA loans.
• Success depends on smart negotiation and choosing the right lender or platform.
• This guide breaks it all down and links you to trusted, commission-free resources.

Let’s walk through how seller concessions work, how much you can ask for, and how to use them no matter your loan type.

Seller concessions are negotiated benefits where the seller agrees to pay certain costs that would normally be the buyer’s responsibility. The goal? Close the deal faster - and with fewer out-of-pocket expenses for you.

• Prepaid property taxes
• Homeowners Insurance
• Title insurance fees
• Escrow fees
• Appraisal or inspection fees
• Discount points to buy down your interest rate
• Attorney’s fees

Heads up: These costs vary based on your location and loan program. Make sure your lender provides a Loan Estimate that breaks down what’s eligible.

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Check If You Qualify

Contrary to popular belief, seller concessions aren’t just for VA loans. Whether you're financing with a conventional, FHA, Jumbo, or even Non-QM loan, there’s room to negotiate concessions as long as you stay within the limits.

• Conventional loans: Up to 3% for down payments under 10%; 6% for 10–25% down
• FHA loans: Up to 6% of the home’s value
• Jumbo/Non-QM: Limits vary check with your lender

Seller concessions can be a win-win if negotiated wisely. Here's how to give yourself the best shot:

1. Get Pre-Approved: Know what you can afford and show sellers you’re serious.
2. Understand Market Conditions: Sellers are more open to concessions in buyer-friendly markets.
3. Include Concessions in Your Initial Offer: Don’t wait until later build it into your negotiation upfront.
4. Don’t Overinflate Your Offer: Sellers might agree to concessions in exchange for a slightly higher price but only if the appraisal supports it.
5. Work With Experts: Choose a lender and real estate agent who understands concessions and their impact on your loan.

Pro Tip: Use a commission-free buying platform like reAlpha to reduce other costs and pair it with a trusted lender like reAlpha Mortgage (NMLS #1743790), who knows how to structure winning deals.

Seller concessions are especially valuable when:

• You’re low on cash to close
• You're trying to keep reserves intact for emergencies
• You want to use your cash toward renovations instead of fees

In competitive markets, sellers might be less willing to offer concessions but it's still worth asking if the property has been on the market for a while or is slightly overpriced.

Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.

When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.

The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.

See how much you could save:

• Check your eligibility

• Explore homes that fit your budget today.

• Your next move could come with thousands back at closing.

• Estimate your savings → Rebate Calculator

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• reAlpha Mortgage LLC, NMLS #1743790, is a licensed mortgage lender. All loans are subject to credit approval, underwriting guidelines, and availability. Not all applicants will qualify.
• reAlpha is a commission-free real estate platform and does not originate or fund loans.
• This article is for informational purposes only and should not be considered financial, tax, or legal advice.
• Mortgage rates, terms, and concessions are subject to change based on market conditions. Always consult your lender for the most up-to-date guidance.

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