What is a Seller Concession?
Put simply, a seller concession is when the buyer and seller of a property agree on a purchase price and then also agree to an additional amount (the concession) to help the buyer with their closing costs. For example, let’s say a buyer and seller agree to the purchase price of $500K but the buyer also requested a 6% ($30K) Seller’s Concession in order to assist them with closing costs. If the Seller agrees to offer them a concession, the actual contracted price would be $530K, however, the additional $30K would not go to the seller, it would actually go towards the buyer’s closing costs. Now, in Western, Central, and Northern Queens, Seller’s Concessions are not very common. However, in South Central Queens and in Southeast Queens it is not uncommon to see offers come in with seller concessions included as part of the terms.