Buyer Requests for Assistance

Why Buyers Are Asking Sellers to Cover Costs

1. Buyers are already stretched on cash

With higher home prices and interest rates, many buyers are using most of their savings for the down payment and reserves. Asking the seller to help with closing costs allows them to still qualify for the loan.

2. Loan programs allow it

Many loan types — like those from the Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA), and even conventional loans backed by Fannie Mae or Freddie Mac — allow sellers to contribute a percentage toward buyer closing costs. Buyers often use this benefit to reduce their out-of-pocket expenses.

3. Market conditions have shifted

In many areas the market has moved closer to balanced or buyer-friendly compared to the extremely competitive years of 2020–2022. Buyers now have more leverage to negotiate.

4. Buyers prefer to finance the cost

Instead of bringing extra cash to closing, buyers sometimes negotiate seller concessions and increase the purchase price slightly so the cost is essentially financed through the mortgage.

Why Sellers Should Consider Being Flexible

1. It attracts more buyers

Offering concessions or covering commissions can expand the pool of qualified buyers, especially first-time buyers who may be short on cash.

2. It can help the home sell faster

Homes that offer buyer incentives often receive more showings and stronger offers, reducing time on the market.

3. Net proceeds may be similar

Sometimes accepting a slightly higher purchase price with concessions results in the same or very similar net proceeds for the seller.

4. It prevents deals from falling apart

Flexibility during negotiations can help keep a qualified buyer in the transaction instead of losing the deal over a relatively small cost difference.