What is sellers credit?

Seller's credit, also known as a seller concession or seller contribution, is an arrangement made between the buyer and seller in a real estate transaction where the seller agrees to contribute money towards the buyer's closing costs or other expenses. This can help the buyer cover the upfront costs associated with purchasing a home, such as the down payment, loan origination fees, title insurance, and inspection costs.

Seller's credit can be a valuable negotiating tool in a competitive real estate market, as it can make the buyer's offer more attractive to the seller. It can also help buyers who may have limited funds available for closing costs or who are struggling to secure financing.

The amount of seller's credit that a seller is willing to offer can vary and is typically negotiated as part of the purchase agreement. It is important for both parties to clearly outline the terms of the seller's credit in the contract to avoid any misunderstandings or disputes later on.

It is also worth noting that some mortgage lenders may have restrictions on the amount of seller's credit that can be provided, so buyers should check with their lender before negotiating seller's credit as part of their offer.