What Is a Seller Concession Credit in NH Real Estate?

🏡 What Is a Seller Concession Credit in NH Real Estate?

In New Hampshire real estate, a seller concession credit is money the seller agrees to contribute toward the buyer’s closing costs. With rising home prices and interest rates, these credits can make the difference between an affordable closing and a deal falling apart.

Here’s how seller concessions work for NH buyers and sellers.

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What Is a Seller Concession Credit?

A seller concession credit is a negotiated amount the seller pays on behalf of the buyer at closing. It does not reduce the sale price — instead, it helps the buyer cover expenses related to their loan, closing costs, or prepaid items.

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What Can Seller Concessions Be Used For?

In NH real estate, concessions can typically be applied to:

✔ Closing costs

✔ Prepaid taxes

✔ Prepaid homeowners insurance

✔ Mortgage points (rate buy-down)

✔ Certain lender fees

✔ Escrow reserves

⚠️ They cannot usually be used as part of the down payment.

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How Much Can a Seller Contribute?

This depends on the type of loan:

Conventional: Typically 3%–6% of the purchase price

FHA: Up to 6%

VA: Up to 4% (with additional allowances)

USDA: Up to 6%

The lender must approve the concession amount.

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Why Buyers Use Seller Concessions

Seller credits are popular because they can:

✔ Reduce out-of-pocket closing costs

✔ Make a home more affordable upfront

✔ Help buyers manage cash flow

✔ Offset inspection findings (repairs, updates, etc.)

A concession can be especially helpful for first-time buyers in Plymouth, Campton, and Central NH.

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Why Sellers Offer Concessions

Sellers may offer a concession to:

✔ Attract more buyers in a softer market

✔ Keep a deal together after inspection issues

✔ Offset buyer concerns without reducing the sale price

✔ Help the property appraise at the agreed price

Credits can make an offer stronger without lowering the property’s perceived value.

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Do Seller Concessions Affect Appraisal?

Yes — the appraiser must verify that the concession is within the allowed limits.

If concessions are too high, the lender may reject the structure of the deal.

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Bottom Line

A seller concession credit is a powerful tool that can help NH buyers afford closing costs while giving sellers flexibility to keep a deal on track. When structured properly, it benefits both sides and helps avoid renegotiation or contract breakdowns.

Jim Johnson Real Estate

Phone: 857-249-7392

Serving Plymouth, Campton & Central New Hampshire

Brokered by Three Hills Real Estate Service