---
title: "Seller concessions — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/seller-concessions/
---

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- [Glossary](/glossary/)
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- Seller concessions
Buying a home[All terms starting with S](/glossary/#letter-S)

# Seller concessions

Also called: seller credit, seller paid closing costs

Money the seller contributes toward the buyer’s closing costs, capped by the loan program.

A concession is a credit toward allowable buyer costs: closing costs, prepaids, or funding a temporary buydown. It is often more useful than an equivalent price reduction, because it reduces cash needed at closing rather than trimming a monthly payment slightly.

Every program caps concessions, and the cap varies with occupancy and down payment. A credit above the cap is not simply refunded to the buyer.

## Put a number on it

This term is an input in the calculator below.

- [Closing Cost CalculatorEstimate buyer closing costs, taxes, and prepaid expenses.](/calculators/closing-cost/)

## Related terms

- [Closing costsThe lender, title, and third-party fees due at closing: separate from your down payment.](/glossary/closing-costs/)
- [Temporary buydownA prepaid subsidy that reduces the payment for the first year or two, after which the payment rises to the note rate.](/glossary/temporary-buydown/)
- [PrepaidsMoney collected at closing to fund your own future taxes and insurance, plus interest from closing to month end.](/glossary/prepaids/)

## More in Buying a home

- [Appraisal](/glossary/appraisal/)
- [Appraisal gap](/glossary/appraisal-gap/)
- [Closing Disclosure](/glossary/closing-disclosure/)
- [Contingency](/glossary/contingency/)
- [Due diligence](/glossary/due-diligence/)
- [Earnest money](/glossary/earnest-money/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. [Licensing and disclosures](/licensing/)