When you're buying a home, most people focus on one number: the purchase price.
But the price of the home isn't necessarily the only thing you can negotiate.
Depending on the property, the seller's motivation, your financing and current market conditions, there may be opportunities to ask the seller to help with certain costs associated with buying the home.
And those negotiations can sometimes make a meaningful difference in how much money you need at closing or even what your monthly payment looks like.
In fact, seller concessions are fairly common right now. According to Redfin, 57.1% of San Diego home sales during the three months ending August 2026 included some type of seller concession.
That doesn't mean every seller will give you a credit, and it certainly doesn't mean buyers should automatically ask for everything.
It means buyers should understand what may be negotiable before writing an offer.
First, What Is a Seller Credit?
A seller credit—sometimes called a seller concession—is an amount the seller agrees to contribute toward certain buyer expenses as part of the transaction.
Instead of simply negotiating the price from $800,000 to $790,000, for example, a buyer might decide that keeping the price at $800,000 while receiving an allowable credit toward closing costs provides more immediate financial benefit.
Which approach is better depends on the buyer's loan, cash available, appraisal considerations and overall financial situation.
That's why I always encourage buyers to look beyond just the purchase price.
1. Buyer Closing Costs
One of the most common requests is for the seller to contribute toward allowable buyer closing costs.
These may include certain lender fees, title and escrow-related expenses, prepaid expenses and other allowable costs associated with completing the purchase.
For a buyer who has saved enough for the down payment but doesn't want to drain additional savings for closing costs, a seller credit can be particularly valuable.
However, the amount a seller may contribute is not unlimited. The rules depend on the type of financing, occupancy, loan-to-value ratio and other factors.
For example, Fannie Mae's current guidelines allow different maximum financing concessions depending on occupancy and loan-to-value ratio. These credits also generally cannot be used to satisfy a borrower's required down payment or reserve requirements.
Your lender should always determine exactly how much credit your particular loan allows.
2. Mortgage Interest Rate Buydown
This is one buyers sometimes overlook.
Instead of asking only for a lower purchase price, you may be able to negotiate a seller contribution that can be applied toward discount points or an allowable interest-rate buydown.
Why would that matter?
Because lowering the interest rate can potentially reduce the monthly mortgage payment.
There are temporary buydowns and permanent rate buydowns, and they work differently. Whether one makes financial sense depends on the loan, available credit, how long you expect to own the property and the lender's requirements.
Fannie Mae treats seller-funded temporary or permanent interest-rate buydowns as interested-party contributions subject to applicable limits.
This is one of those situations where your real estate agent and lender should work together before you write the offer.
3. Repairs
The inspection period may uncover items that weren't obvious when you first toured the property.
Depending on the contract and circumstances, buyers may negotiate with sellers regarding repairs.
Sometimes a seller completes an agreed-upon repair before closing.
In other situations, the parties may negotiate an allowable credit rather than having the seller perform certain work.
There isn't one strategy that's right for every house.
The age and condition of the property, the seriousness of the issue, the seller's position and the buyer's financing all matter.
And some loan programs or appraisal conditions may require certain repairs to be completed rather than handled through a simple credit.
4. Home Warranty
A buyer may also negotiate for the seller to pay for a home warranty.
A home warranty is different from homeowners insurance. Depending on the plan, it may provide limited coverage for certain appliances or home systems if they fail after the purchase.
Coverage varies considerably, so buyers should review the specific plan rather than assume everything in the house will be covered.
5. HOA-Related Costs
Buying a condo, townhome or property in a homeowners association can introduce additional expenses.
Depending on the transaction and financing, certain HOA-related costs may be negotiable.
For example, Fannie Mae guidelines permit qualifying interested-party contributions toward borrower HOA assessments covering up to 12 months after settlement, subject to applicable rules and limits.
This is another reason buyers should understand the entire transaction—not simply the sales price.
6. Appliances and Items Included With the Home
What stays with the house?
Don't assume.
A refrigerator, washer, dryer or other item may or may not be included depending on the listing and purchase agreement.
If there's something you want included, address it in the offer rather than assuming the seller will leave it behind.
Personal property can also affect financing and appraisal treatment, so these items need to be structured appropriately.
How Much Can You Ask the Seller to Pay?
This is where buyers need to be careful.
There isn't one percentage that applies to every transaction.
Conventional financing has limits based on factors including occupancy and loan-to-value ratio. Under Fannie Mae's guidelines, maximum financing concessions for a principal residence or second home generally range from 3% to 9%, depending on LTV, while investment properties have different limits.
VA financing works differently. The VA states that buyers and sellers may negotiate who pays various closing costs. VA also distinguishes ordinary closing-cost credits from seller concessions, with seller concessions generally limited to 4% of the home's reasonable value.
FHA has its own rules as well, which is why the lender needs to review the specific loan before the offer is structured. HUD maintains the current FHA Single Family Housing Policy Handbook as its authoritative source for FHA lending policy.
The important takeaway isn't to memorize percentages.
It's to have your lender determine what is allowable for your financing before deciding what to request.
Should You Ask for a Lower Price or a Seller Credit?
This is one of my favorite conversations to have with buyers because the answer isn't always obvious.
Imagine negotiating $10,000.
Should you ask the seller to reduce the purchase price by $10,000?
Or should you keep the price where it is and ask for an allowable $10,000 contribution toward closing costs or a rate buydown?
Those two choices can affect your finances very differently.
A $10,000 reduction in purchase price does not mean you'll have $10,000 less cash to bring to closing.
That's why I like to have the lender calculate different scenarios whenever possible.
Look at the estimated cash to close.
Look at the monthly payment.
Look at the interest rate.
Then make an informed decision.
The San Diego Market Is Not the Same Everywhere
This is especially important right now.
San Diego is not one single market.
According to recent Redfin data, turnkey single-family homes can still attract strong competition, while condos and townhomes may take longer to sell. At the same time, seller concessions remain common: 57.1% of San Diego sales in Redfin's August analysis included a concession.
That means the negotiation strategy for a beautiful home that just hit the market may be very different from the strategy for a property that has been sitting for 60 days.
I look at things such as:
How long has the home been on the market?
Has the seller already reduced the price?
Are there competing offers?
Does the property need repairs?
Did a previous escrow fall through?
How does the asking price compare with recent sales?
And most importantly, what does my buyer actually need?
Sometimes price is the priority.
Sometimes preserving cash is more important.
Sometimes the monthly payment is the biggest concern.
Your offer should reflect your goals and the particular property, not a one-size-fits-all formula.
Minnie's Market Tip
"Don't negotiate just to say you got a deal. Negotiate for the terms that actually make the biggest difference to you."
Buying a home involves much more than agreeing on a sales price. The way an offer is structured can affect your cash at closing, monthly payment and overall buying experience.
Before writing an offer, understand what's potentially negotiable—and have your real estate agent and lender work together to determine which strategy makes the most sense for you.
About Minnie Rzeslawski
Minnie Rzeslawski is a Broker Associate with RE/MAX City Real Estate and Broker/Owner of The 24K Real Estate Group. With 38 years of experience serving buyers and sellers throughout San Diego County, she specializes in residential real estate, probate sales, trust sales, first-time homebuyers, and strategic home marketing.
Minnie is committed to educating her clients so they can make confident real estate decisions.
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