What Is a Seller Concession in New Hampshire Real Estate?

🏡 What Is a Seller Concession in New Hampshire Real Estate?

When buying a home in Plymouth, Campton, Rumney, Thornton, Ashland, or anywhere in Central NH, you might come across the term seller concession during negotiations.

Seller concessions allow a seller to contribute money toward a buyer’s closing costs — making it easier and more affordable for buyers to purchase a home, especially when upfront cash is tight.

Here’s exactly how they work in New Hampshire.

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What Is a Seller Concession?

A seller concession is when the seller agrees to pay a portion of the buyer’s closing costs.

This money does not go directly to the buyer — instead, it reduces the buyer’s required cash at closing.

Concessions can help cover:

Loan origination fees

Title fees

Attorney fees

Prepaid taxes

Prepaid homeowners insurance

Discount points

Appraisal fees

Certain inspection fees

They are especially helpful for first-time buyers or buyers using FHA, VA, or USDA loans.

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How Much Can Sellers Contribute in NH?

Concessions depend on loan type:

✔ Conventional Loan:

Typically up to 3%–6% of the purchase price, depending on down payment.

✔ FHA Loan:

Up to 6%

✔ VA Loan:

Up to 4%, plus some additional approved costs.

✔ USDA Loan:

Usually up to 6%

These limits prevent lending abuse and ensure the home value supports the loan.

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Why Seller Concessions Are Common in NH

In many Central NH markets, especially Plymouth and rural surrounding towns, seller concessions are used because:

✔ Buyers may have strong income but limited cash

✔ Closing costs can be high

✔ Rates fluctuate and buyers need flexibility

✔ FHA/VA buyers often depend on concessions

✔ Older homes may need immediate upgrades after closing

Concessions help deals move forward when buyers need financial breathing room.

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Do Seller Concessions Affect the Purchase Price?

Yes — indirectly.

Most concessions are rolled into the final purchase price because:

Lenders require the home to appraise for the price including concessions

Sellers usually agree to concessions only if the price supports it

Example:

If a home is listed at $350,000 and the buyer requests $10,000 in concessions, the offer might be $360,000 to balance it out.

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Q&A

Q: Can buyer closing costs be fully covered with concessions?

A: Sometimes, yes — depending on loan limits and total closing costs.

Q: Do concessions make an offer less competitive?

A: In a hot market, yes. In a balanced or slower market, concessions are very common.

Keywords

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Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com