Seller Concessions: How Seattle Buyers Save at Closing

The part of buying a Seattle or Eastside home that surprises most buyers isn't the purchase price — it's the cash you're asked to bring on top of it. In Bellevue, Kirkland, and Redmond, where a well-located home can easily carry an $800,000 price tag, your down payment is only half the story. The other half is closing costs, prepaid property taxes, and insurance that can run into the tens of thousands — money you write a check for before you ever get the keys. That's where seller concessions come in: a credit from the seller that can shrink the cash you need at closing, leaving more in your pocket for moving, repairs, or a cushion after move-in.

A seller concession is a credit the seller pays toward your eligible closing costs and prepaid expenses. It flows through your loan at closing, lowering the cash you bring to the table. On an $800,000 Eastside home, a 3% concession is $24,000 toward those costs. Understanding how to structure that credit is the difference between stretching your savings and keeping a cushion after you move in.

What Do Seller Concessions Actually Cover?

Concessions aren't a discount on the purchase price. They are a credit applied to the costs you'd otherwise pay out of pocket at closing.

What costs can a concession credit cover?

In most cases, that credit can cover:

• Your loan origination fee and points.

• Title insurance and escrow fees.

• Prepaid property taxes and homeowners insurance.

• Appraisal and credit report fees.

• Recording fees and the transfer tax where allowed.

The exact list of eligible items depends on your loan program, your lender, and what the contract states.

That flexibility is what makes concessions so valuable. Rather than draining your savings on top of a down payment, you can preserve cash for moving costs, furniture, a repair fund, or simply a comfortable emergency cushion after closing.

A Real-World Example: Negotiating a Credit in the Eastside Market

Let's make this real. Imagine you're buying a home in Bellevue listed at $800,000, and it has sat on the market for a few weeks. You offer the full asking price but add one condition: a 3% seller concession, or $24,000.

When the seller accepts, that $24,000 goes toward your closing costs and prepaids. If those costs total $18,000, the credit covers them entirely — and the remaining $6,000 either carries forward to other allowable costs or reduces what you bring to the table. Your down payment stays the same, but your cash needed at closing drops dramatically.

This is why concessions work so well in a more balanced market. When a home has lingered on the market or the seller is motivated — a relocation, a divorce, an already-purchased next home — a seller credit can make the deal work for both sides.

How Much Can You Ask For? It Depends on Your Loan

Concessions aren't unlimited — every loan program caps how much a seller can contribute. Ask for too much and the lender will flag it.

The cap by loan program

Here's how the limits break down:

• Conventional allows 3% with less than 10% down, scaling up to 9% with a larger down payment.

• FHA caps concessions at 6% of the purchase price.

• VA allows up to 4% for certain costs, plus all allowable closing costs.

• USDA largely follows the 6% FHA-style cap.

In my years working with buyers across Silverdale, Seattle, Redmond, and Kirkland, getting this right up front is what keeps a great offer from collapsing at underwriting.

When Is It Smartest to Ask for Concessions?

You don't want to ask for concessions on every offer. In a competitive Seattle or Redmond market, a strong credit request can make your offer less attractive if a seller has multiple options.

The real leverage appears when the seller needs a deal. A home that has been on the market 30-plus days, one the seller has already moved out of, or one priced above where recent comps suggest — those are the situations where a credit moves the deal forward. Combine it with a clean offer and reasonable timeline, and you're not asking for a discount; you're offering a path to closing that helps both sides.

The exact approach depends on your situation and the seller's. That's why it pays to think through your strategy before you're in a multiple-offer conversation.

Step 1: Decide How Much to Ask For

Start with your loan program's cap, because that sets the ceiling for what a lender will allow. A common approach is to ask for the full eligible amount, then let the seller counter.

On an $800,000 home, a 3% concession equals $24,000 toward your costs. Check that number against the real closing costs on your loan estimate so your request stays realistic and defensible.

Success check: You now know the maximum concession your loan program allows and a dollar figure within that limit.

Step 2: Estimate Your Closing Costs and Prepaids

Pull your loan estimate or ask your lender for a breakdown of likely closing costs. Focus on the items a concession can cover — origination fees, title and escrow, prepaid property taxes and insurance, appraisal, and recording fees.

Total those costs so you know exactly how much credit you need, not just how much you're allowed to request.

Success check: You have a dollar total for your projected closing costs and prepaids.

Step 3: Frame the Request in Your Offer

When a home has lingered on the market or the seller is motivated — a relocation, a move already in motion — a concession can be the difference between a deal and a stalemate. Submit it as part of a clean, serious offer, not a list of demands.

Write the credit into the purchase and sale agreement as a dollar amount or percentage of the purchase price, clearly identifying the costs it will cover.

Success check: Your offer clearly states the concession amount and the eligible costs it applies to.

Step 4: Verify the Credit Against Your Loan Limits

Before you sign, confirm with your lender that the negotiated credit falls within your loan program's cap. Concessions that exceed the limit can be reduced or rejected at underwriting, which can delay your closing.

Each program has its own ceiling, so the amount that works on a Conventional loan may not work on an FHA or VA loan — FHA, for instance, allows interested parties to contribute up to 6 percent of the sales price. A quick check now saves headaches later.

Success check: Your lender confirms the credit is within limits and will flow correctly at closing.

Disclosures & Licensing

Tami Bill, Mortgage Advisor — NMLS# 4038

Cornerstone First Mortgage, LLC (Future First powered by Cornerstone First Mortgage, LLC) — NMLS# 173855

Interest rates and loan terms are subject to change without notice. The information in this article is for educational purposes only and does not constitute a commitment to lend, an offer of credit, or a guarantee of approval. Concession limits and eligible costs can vary by loan program, lender, and transaction; always confirm the details that apply to your situation with a licensed mortgage professional.

Published by Tami Bill.