Price Reduction VS. Seller Concession - What’s the Difference? Let’s say a home is listed at $550,000 Option 1: $10,000 Offer Price Reduction The purchase price is lowered to $540,000. *Buyer finances $540,000 (minus down payment) *Buyer still pays all their own closing costs. *Seller nets $540,000 Option 2: $10,000 Seller Concession The price stays $550,000, but the seller gives the buyer a $10,000 credit toward closing costs or a rate buydown. *Buyer brings less cash to closing or pays for bet
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Price Reduction VS. Seller Concession - What’s the Differenc…
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Price drop vs. seller concession. Here’s the difference. Most buyers think negotiating a lower purchase price is the best way to save. But when you break down the math, it often makes more sense to ask for seller concessions instead of just a lower price. 👉 Example: • Home price: $500,000 • If you negotiate the seller down $10,000 → your loan is now $490,000. That’s only about $61 less per month because the savings are stretched across 30 years. • But if you ask the seller to give you $10,000 i
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