Serving Spokane County and surrounding Eastern Washington and North Idaho communities.
Have a question about selling your home? Call or text Chelsea and the MFP Team directly at (509) 565-1581.
A home can be the right fit and still strain the budget once lender fees, prepaid taxes, insurance, and closing costs enter the picture. Knowing how to negotiate seller concessions can help buyers preserve cash for the move, early repairs, or a stronger financial cushion without losing sight of the offer terms that matter most.
Seller concessions are not a shortcut or a guarantee. They are a negotiated contribution from the seller toward eligible buyer costs, and they work best when the request is supported by the property, the market, the financing, and a well-structured offer. In the Spokane area and throughout Washington and Idaho, the strongest strategy is rarely just asking for the largest number. It is making a request the seller can reasonably accept.
What Seller Concessions Can Cover
A seller concession is money the seller agrees to contribute at closing toward the buyer's allowable costs. The funds do not usually go directly into the buyer's pocket. Instead, they are shown on the closing statement and applied to costs permitted by the buyer's loan program and lender.
Depending on the loan and lender guidelines, concessions may help cover items such as:
- Loan origination charges, appraisal fees, title expenses, and other lender or settlement costs
- Prepaid homeowners insurance, property taxes, and interest collected at closing
- A discount-point buydown that lowers the buyer's interest rate
- A temporary interest-rate buydown, when allowed and structured through the lender
They generally cannot be used as the buyer's down payment, paid out as cash, or applied to costs the lender does not approve. Loan programs also set limits on how much a seller may contribute. Those limits can vary based on the loan type, occupancy, down payment, and whether the property is a primary residence, second home, or investment property.
That is why the lender conversation should happen before an offer is written. A buyer may be approved for a concession amount that sounds helpful but cannot use all of it. An unused credit can disappear at closing, which is not the outcome anyone wants.
When to Negotiate Seller Concessions
Market conditions shape the conversation. When several buyers are competing for a well-priced Spokane home, a large concession request can make an offer less appealing than a similarly priced offer with cleaner terms. In a slower segment of the market, on a home that has been listed longer, or where a seller needs a sale to move forward, concessions may be a practical way to close the gap.
The condition of the property matters, too. After an inspection reveals aging systems, safety concerns, or repairs that will affect the buyer's early ownership costs, a credit may be more workable than asking the seller to complete repairs. The seller avoids coordinating work before closing, while the buyer can choose contractors and timing after taking ownership.
Still, a concession is not automatically the right response to every inspection finding. Significant defects may require further evaluation, repair, a price adjustment, or a decision to walk away if the contract allows. A credit is most useful when both sides agree on the issue and the buyer can reasonably complete the work after closing.
Price and concessions work together
A seller often evaluates the net result, not simply the purchase price. Consider two offers on a $500,000 home: one at $500,000 with no seller credit, and another at $510,000 with a $10,000 concession. They may appear equivalent on paper, but they are not always equal after commissions, loan requirements, appraisal, and the seller's bottom line are considered.
The higher-price offer also needs to appraise. If the appraisal comes in below the contract price, the buyer and seller may face another negotiation, an appraisal-gap decision, or a financing problem. Raising the price to offset a concession can be effective in some circumstances, but it should never be treated as a free adjustment.
Build a Request That Makes Sense
Before deciding on a number, start with the buyer's actual cash needs and loan structure. Ask the lender for a detailed estimate of closing costs, prepaids, and the maximum seller contribution allowed. Then determine whether the goal is to reduce cash due at closing, buy down the rate, address inspection-related costs, or some combination of these.
Next, review the seller's likely position. Has the property just come on the market? Are there multiple offers? Has it had price reductions or extended market time? Is the seller already offering a credit in the listing? A strong negotiation reflects these details rather than applying the same request to every property.
The offer should also give the seller confidence that the transaction can close. A solid preapproval, realistic timeline, appropriate earnest money, and carefully chosen contingencies can make a concession request easier to consider. This does not mean waiving protections casually. It means understanding which terms matter to the seller and which protections the buyer genuinely needs.
For sellers, the same principle applies in reverse. Offering a concession can expand the pool of qualified buyers, particularly when affordability is a concern. It may be more appealing than another price reduction because it directly helps a buyer with upfront costs. But the seller should see the full net sheet before agreeing, including expected proceeds and the impact of any buyer-requested credit.
Thinking about buying a home?
We can help you understand the current market, navigate financing options, and know what to do and what to avoid before starting your home search.
Call or text Chelsea at (509) 565-1581, or email chelsea@mcfarlandprey.com.
"I called Chelsea because I was so frustrated with realtors that I was considering getting my realtors license... Thank God I didn't, she's an amazing realtor! She's low pressure, efficient, knowledgeable and most importantly a shrewd negotiator with strong connections. Go with Chelsea!"
—Jamie C. (Google Review from first time homebuyer in Spokane, WA)
Use Inspection Negotiations Carefully
Inspection negotiations can become emotional because a report often lists a long range of observations, from routine maintenance to major concerns. The most productive response separates normal ownership items from issues that materially affect safety, function, or cost.
A buyer who requests a credit should be specific. Provide the relevant inspection findings, estimates when appropriate, and a clear proposed amount. A vague demand for money after inspection can feel like a reopening of the entire deal. A targeted request connected to documented concerns is easier for a seller to evaluate.
There is also a timing issue. If the buyer needs the credit for lender-approved closing costs, the amendment must be completed early enough for the lender and title company to revise the file. Last-minute changes can delay closing or create avoidable stress for everyone involved.
Avoid the Common Mistakes
The biggest mistake is treating concessions as separate from the rest of the offer. A seller credit, purchase price, financing contingency, closing date, and inspection terms all tell one story. If that story is difficult for the seller to accept or difficult for the lender to approve, the request may weaken an otherwise promising offer.
Another mistake is asking for more than the buyer can use. The lender should confirm the allowable amount and eligible expenses before the offer goes out. Buyers should also remember that a concession does not reduce the monthly payment unless it is applied to an approved rate buydown or points. It lowers the cash needed at closing, which can be valuable, but it solves a different problem.
Finally, do not overlook the appraisal. If an offer price is increased to create room for a credit, discuss the appraisal risk in advance. The right structure depends on comparable sales, the home's condition, the buyer's available funds, and the seller's motivation.
Negotiate Seller Concessions With a Clear Plan
The best concession negotiations are practical, well-documented, and tailored to the property in front of you. Buyers deserve an advocate who can explain the trade-offs in plain language, coordinate with the lender, and present terms that protect their interests. Sellers deserve a clear view of net proceeds and an honest assessment of whether a credit will help bring the right buyer to the table.
At McFarland Prey Real Estate, we believe impossible becomes possible with the right people on your side. Whether a seller credit is the right move or a different strategy better serves your goals, a thoughtful conversation before you write or respond to an offer can make the path to closing feel far more manageable.
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About Chelsea McFarland
Chelsea McFarland is a real estate broker serving Spokane, Spokane Valley, Medical Lake, Cheney, Liberty Lake, and surrounding Eastern Washington communities.
She helps homeowners understand their property’s value, prepare for the market, and make informed decisions about when and how to sell.
Thinking about selling?
Call or text Chelsea directly at (509) 565-1581, email chelsea@mcfarlandprey.com