What Are Seller Concessions?
Seller concessions are credits given to the buyer at closing — typically applied toward the buyer's closing costs. In Ohio, concessions are negotiated as part of the purchase agreement. They reduce your net proceeds but can make the deal work for buyers who are short on cash at closing. Common concessions include closing cost credits, repair credits, home warranty payment, and prepaid property taxes.
When Concessions Make Sense for Sellers
In a buyer's market — or when your home needs work the buyer doesn't want to do before closing — offering concessions can be the difference between a deal and a dead contract. If the buyer is stretching their budget and needs $5,000 toward closing costs, and you can slightly increase the offer price to cover it (a seller credit structure), you're keeping your net proceeds whole while making the deal work. In a seller's market where you have multiple offers, you typically don't need to offer anything — let the market dictate.
Concession Limits by Loan Type
Lenders cap how much sellers can contribute to buyer closing costs. As of 2026: Conventional loans allow 3% of purchase price (with less than 10% down), 6% (with 10–25% down), or 9% (25%+ down). FHA allows up to 6%. VA allows up to 4%. USDA allows up to 6%. If the agreed concession exceeds the limit, the excess doesn't go to the buyer — it disappears. Know the limits before you negotiate.
Repair Credits vs. Completing the Repair
When the inspection turns up issues, you have a choice: fix them before closing or give the buyer a credit. My general recommendation for Cincinnati sellers: fix small, common items (leaky faucets, missing GFCI outlets, trip hazards) because buyers overestimate repair costs. For larger items (roof, HVAC), a credit is often cleaner — it gets the deal done without creating project risk between contract and close. Never give a credit without getting a contractor estimate first — you can't calculate a fair credit number without data.