Buyers in metro Atlanta are increasingly asking sellers to help with closing costs, and some sellers are open to the idea. Our real estate agents at JYB Realty have been getting this question more frequently, so we thought we'd share some negotiation advice on how to best approach concessions.

What Seller Concessions Can Pay For

A seller concession is an agreement in which the seller pays certain eligible buyer expenses at closing rather than simply reducing the home's sale price. While this seems pretty straightforward, there are a few nuances that many buyers overlook when considering concessions. Seller concessions take various forms, the most common of which are:

• Cash toward your closing costs
• A temporary or permanent mortgage rate buydown
• Credits towards eligible repair-related costs
• Home warranty coverage

Each concession type has its own qualification requirements and limits. The total amount a seller can contribute towards your expenses is also limited by your loan program and lender requirements, and it varies depending on factors such as the type of financing and your down payment. Your lender can tell you exactly what limits apply based on your specific loan.

How Timing Impacts Your Request

Depending on the timing of your request, concessions can either be your best ally or your worst enemy in a negotiation. Making your concession request in your initial offer is significantly different from waiting until after inspection, when you already have an inspection report in hand and have identified several repair items.

As far as timing goes, it can often make sense to include your concession request in your initial offer so the seller can evaluate the full terms from the beginning. In a competitive market, however, a large concession request may make your offer less appealing. After inspection, buyers may also have an opportunity to request a credit or another concession when the request is tied to a specific issue with the home.

How to Frame Your Request

This is arguably the most important part of asking for seller concessions. Many buyers make the mistake of asking for multiple concessions at once, especially a reduction in the sale price in addition to cash toward closing costs, repairs, and a home warranty. When requesting concessions, it's usually best to:

• Lead with a strong overall offer
• Ask for a single concession rather than multiple
• Be specific about the dollar amount if you're asking for cash toward closing costs, rather than a general request
• Frame repair requests in terms of significant safety, structural, or system concerns rather than cosmetic items

A specific request can be much easier for a seller to evaluate than a vague request for help with expenses.

When You Can't Get Concessions

Some sellers are completely unwilling to give concessions for a variety of reasons. Some simply don't have enough flexibility in the transaction to cover additional buyer expenses. Others may prioritize a higher net proceeds amount, a faster closing, or an offer with fewer financial requests.

If you run into a situation where the seller is completely unwilling to agree to your concession request, you may want to consider asking for something smaller, such as a home warranty or repair credit, rather than a sizable contribution toward your closing costs. You might also ask your lender whether a temporary interest-rate buydown could be an option instead of a permanent buydown.

Frequently Asked Questions About Seller Concessions

Can buyers ask for seller concessions in Georgia?

Yes. Buyers can request seller concessions as part of an offer or during negotiations. Whether the seller agrees depends on the terms of the offer, current market conditions, and the seller's priorities.

How much can a seller contribute toward closing costs?

The allowable amount depends on the buyer's loan program, down payment, and lender requirements. Buyers should confirm their specific limits with their lender before requesting a concession.

Can I ask for concessions after the home inspection?

Yes. Inspection findings can provide a reason to request a repair credit or another concession. However, sellers are not required to agree, and the strength of the request may depend on the issue and the terms of the original contract.

How to Approach Your Negotiation

Each negotiation is as unique as the home being sold. There's no one-size-fits-all script for asking for seller concessions, as each request should be tailored to the specific home, seller, financing, and current market conditions.

If you're considering your options for negotiating on a home in metro Atlanta, we encourage you to shop for Atlanta homes for sale and contact us to discuss your concession options in detail with one of our experienced agents.