Real estate glossary
Seller credit
Also called: Seller concession, Closing cost credit
Money the seller agrees to give the buyer at closing, usually toward their closing costs or instead of making repairs.
A seller credit reduces what the buyer has to bring to closing. It is commonly used to settle a repair request or to help a buyer with their closing costs.
The buyer's lender may cap a credit — often as a percentage of the price, depending on the loan type — and limit it to actual closing costs, so a credit that is too large may need to be restructured as a price reduction.
What it means for you as a seller
A credit and a price cut can cost you similar amounts but affect the buyer differently. Compare the net effect on your proceeds, not just the headline number.
Related terms
- Request for repairThe buyer's written list of repairs or credits they want after inspections, which the seller can accept, refuse or counter.
- Seller closing costsThe fees and charges a seller pays at closing, such as commissions, escrow and title fees, transfer taxes and prorated bills.
- Settlement statementThe final itemized accounting of every charge and credit in the sale, showing how much the seller receives.
Not legal or tax advice. These explanations are general information to help you follow your own transaction. Laws, forms and customs vary by state and county, and the terms of your own contract always control. For advice about your situation, talk to your real estate agent, a real estate attorney or a tax professional. Last updated .