Seller Credits: The Most Underused Tool in Today’s Market

In a competitive seller’s market, we all know price matters.But in this market — with higher rates and tight affordability — the smartest agents and buyers aren’t just negotiating price…

They’re negotiating terms — and terms win deals.

Enter: the seller credit.

What Is a Seller Credit?

A seller credit is money the seller agrees to give back to the buyer at closing to help cover costs.

That could mean:

✅ Covering part or all of the buyer’s closing costs

✅ Paying for a temporary rate buydown (like a 2-1 buydown)

✅ Covering upfront DPA or MI costs

✅ Buying down the interest rate long-term

It’s leverage.

And used right, it turns an “okay” deal into a power move.

Why It Matters More Right Now:

Let’s say you’re representing a buyer and the seller is flexible. You could:

• Negotiate a $15K price drop — saves ~$90/month on the mortgage

• OR negotiate a $10K seller credit — possibly buys down the rate by 1%+, saving $250+/month

  
  

Which do you think the buyer will feel more?

Recent Client Example (Last Week):

We used:

• A seller credit to fund a 2-1 buydown (starting rate in the 5s)

• Buyer also layered DPA to minimize cash to close

• Buyer’s monthly payment for the first year = $536/month lower than it would’ve been with no buydown

  
  

Result: affordable homeownership and a stronger offer accepted — because the seller saw full price.

Agents — This Is a Strategy You Can Own:

Instead of just saying “rates are high,” come to the table with an option.

Show how a credit can:

• Make financing smoother

• Help FHA/VA buyers compete

• Create a win-win on tough properties

• Save deals from falling apart in underwriting

  
  

BOTTOM LINE:

Seller credits aren’t just for desperate listings.They’re a smart tool for shaping better outcomes — for everyone.

Use them to close more. Use them to get creative.Use them to win.

Let’s apply and run the numbers.📲 Start your application here