Mortgages
Home Equity and Refinancing
Home Buying

What is seller's concession?

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Wiki User
February 08, 2007 4:36PM

The term can take on slightly different meanings depending on exactly where it is used. In the context of a home sale, it generally indicates something like a fee, cost or "giveback" (even action), rather than a reduction of the purchase price, that is commonly an expense of the buyuer or benefit to the seller, the seller is agreeing to "concede" to the buyer. For example "for acceptance of the offer within 24 hours, the seller agrees to credit the buyer $1,000 to be applied toward the closing costs". Lenders are concerned that a deal showing a certain % downpayment may use these to skew the numbers and essesntially involve seller financing or mask the source of funds, or such.