What Are Seller Concessions?

Seller concessions are costs that a seller agrees to pay on behalf of the buyer as part of the purchase agreement. These concessions are commonly used to help buyers reduce their out-of-pocket expenses at closing and can make a home more affordable—especially for first-time buyers.

Seller concessions are negotiated during the offer process and must be clearly outlined in the contract.

What Do Seller Concessions Typically Cover?

Seller concessions can be applied to a variety of buyer costs, including:

  • Closing costs (lender fees, title fees, escrow fees)

  • Prepaid expenses (homeowner’s insurance, property taxes)

  • Loan-related costs (discount points to lower the interest rate

They cannot be used for a down payment, but they can significantly reduce the cash a buyer needs to bring to the Closing Table.

How Much Can a Seller Contribute?

The amount of seller concessions allowed depends on the loan type:

  • Conventional loans: Typically up to 3%–6% of the purchase price (based on down payment amount)

  • FHA loans: Up to 6%

  • VA loans: Up to 4% (with some costs allowed beyond this limit)

  • USDA loans: Up to 6%

Your lender will confirm the exact limits based on your loan and situation.

Why Are Seller Concessions Common?

Seller concessions are often used to:

  • Help buyers manage upfront costs

  • Make a home more competitive in slower markets

  • Offset repair or inspection-related expenses

  • Support buyers using FHA, VA, USDA, or MFA loan programs

In some cases, depending on the home and market conditions, The Bigelow Team may be able to negotiate for the seller to pay part or all of the buyer’s closing costs.

Seller Concessions in Albuquerque & the East Mountains

In markets like Albuquerque, Rio Rancho, Corrales, Placitas, and the East Mountains—including Tijeras, Edgewood, Moriarty, and Sandia Crest- seller concessions can be a powerful tool—especially when the chosen home has been on the market for a while or pricing strategies allow flexibility.

Understanding when and how to request concessions can make a meaningful difference in your overall cost to buy.

How The Bigelow Team Helps

At NMmoves.com, The Bigelow Team works closely with buyers to:

  • Structure competitive offers that include seller concessions when appropriate

  • Coordinate with local lenders to confirm allowable limits

  • Help reduce out-of-pocket costs while keeping offers attractive to sellers

Thinking about buying a home and wondering if seller concessions could work for you?
Visit NMmoves.com or contact The Bigelow Team at 505-318-1000 to explore your options with trusted local experts.