What is the maximum seller concession allowed?

Conventional: 3% (LTV > 90%), 6% (75-90% LTV), 9% (below 75%). FHA: 6%. VA: 4%. These limits exist to prevent inflated appraisals from seller-paid concessions.

Does a seller concession affect the purchase price?

Technically no — the purchase price stays the same, but the seller provides a credit at closing. However, appraisers look at net effective price. Concessions above market norms can cause appraisal issues.

When should I ask for seller concessions vs a lower price?

Concessions are preferable when cash to close is the constraint. A lower price reduces the loan amount and monthly payment but requires the same cash. Concessions reduce cash needed without changing the loan amount significantly.

Seller Concession Value Calculator

Calculate the net cost/benefit of requesting seller concessions to cover closing costs. Shows how concessions affect net purchase price vs out-of-pocket cash needed.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate the net cost/benefit of requesting seller concessions to cover closing costs. Shows how concessions affect net purchase price vs out-of-pocket cash needed. Use the seller concession result to inform your calculation.

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Seller Concession Value Calculator

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Frequently Asked Questions

What is the maximum seller concession allowed?

Does a seller concession affect the purchase price?

When should I ask for seller concessions vs a lower price?