Before You Ask for $15,000 Off the Price, Read This

When buying a home, it’s easy to focus on one number: the purchase price.

But if you’re financing the purchase, the lowest price does not always put you in the strongest financial position.

That’s where seller concessions can matter.

Let’s Use $15,000

Say you’re buying a $500,000 home and have two options.

You can reduce the price to $485,000, or keep the price at $500,000 and negotiate a $15,000 seller concession.

A seller concession is money the seller agrees to contribute toward certain allowable buyer costs as part of the transaction.

Most buyers instinctively want the lower price, and I understand why. But that $15,000 price reduction is typically being spread across a 15- or 30-year mortgage. Your payment may be lower, but the monthly difference may be smaller than you expect.

A concession, on the other hand, may reduce the cash you need to bring to closing. That could mean keeping more money in savings for moving, repairs, furniture, emergencies, or simply having more breathing room after you get the keys.

Depending on the loan, concessions may also be used toward costs associated with lowering the interest rate.

So instead of only asking, “How much can we get off the price?” I’d rather ask, “How can we use this negotiation to put you in the strongest position?”

What About Cash Buyers?

If you’re paying cash, the strategy can be different. There is no mortgage rate to buy down, and you may not have enough eligible costs to make a large concession useful.

In that situation, reducing the purchase price may make more sense.

Sellers Should Look at the Whole Offer

This strategy matters for sellers too.

A seller may see an offer at $500,000 with a $15,000 concession and feel like they are giving away $15,000.

But compare that with an offer at $485,000 with no concession.

From a basic numbers standpoint, those offers may put the seller in a very similar position. That’s why sellers should focus on their net proceeds and the strength of the entire offer, not just whether the buyer is asking for a concession.

Financing, inspection terms, appraisal risk, closing timeline, contingencies, and the buyer’s ability to close all matter too.

Talk to the Lender First

Seller concessions have limits, and what they can be used for depends on the loan program, down payment, occupancy, and other details.

You do not want to negotiate money that the buyer cannot fully use.

This is where the Realtor and lender should be working together before the offer is written.

The Bottom Line

When the market gives buyers room to negotiate, the goal should not simply be to say, “We got $15,000 off.”

The better question is:

What does that $15,000 actually do for you?

For many financed buyers, a seller concession can create more immediate value than reducing the purchase price by the same amount.

For sellers, the goal is to understand the net and the strength of the overall offer.

The best structure is the one that makes the most sense for the people involved in the transaction.

We Guide Next.