What Are Concessions When Buying A Home -

: Paying for the buyer's initial property taxes, homeowners insurance premiums, or HOA dues.

Sellers can agree to cover a wide variety of costs traditionally paid by the buyer. Common examples include:

: Including a one-year home warranty or leaving behind major appliances. Maximum Concession Limits by Loan Type what are concessions when buying a home

Rather than a direct price reduction, these concessions act as a credit at closing, reducing the "cash to close" a buyer needs to bring to the table. This guide explores how they work, what they cover, and the limits imposed by different loan types. Common Examples of Seller Concessions

Understanding Seller Concessions When Buying a Home When purchasing a home, the sticker price is only one part of the financial equation. Homebuyers often face thousands of dollars in closing costs and prepaid fees. are financial incentives or credits a seller provides to the buyer to help offset these upfront expenses. : Paying for the buyer's initial property taxes,

: Covering fees for the Real Estate Appraisal (1.2.1), title search, title insurance, and loan origination.

: Paying "points" upfront to lower the buyer's interest rate temporarily or for the life of the loan. Maximum Concession Limits by Loan Type Rather than

: Offering a credit to cover specific repairs found during an inspection, such as an aging roof or water heater.