When we uncover issues during inspections, you have two main ways to negotiate with the seller:
✔️ Ask for repairs
or
✔️ Ask for seller concessions (money back at closing)
Many buyers assume repairs are the better option—but that’s not always true.
In many Texas transactions, especially here in North Texas, seller concessions are the smarter, cleaner, and more strategic choice.
When I represent buyers, I help them decide when to push for repairs and when concessions give them more control and better results.
Here’s the full breakdown.
1. First—What Are Seller Concessions?
Seller concessions are credits the seller gives you at closing.
They can be used for:
✔️ Closing costs
✔️ Prepaid taxes
✔️ Insurance
✔️ Rate buydowns
✔️ HOA dues
✔️ Lender fees
Concessions reduce the amount of cash you bring to closing.
2. Why Concessions Often Work Better Than Repairs
✔️ You get to choose your own contractor
✔️ You control the quality of work
✔️ Repairs are done AFTER closing
✔️ No last-minute delays
✔️ No fighting over receipts
✔️ No concerns about cheap or rushed work
✔️ Concessions can help your loan structure
Many sellers choose concessions because they’re easier and faster.
3. When I Recommend Seller Concessions Instead of Repairs
A) When the repair is complex
If the repair requires:
-
HVAC overhaul
-
Plumbing re-work
-
Electrical upgrades
-
Sewer line repair
-
Foundation adjustments
…it’s almost always better for YOU to choose the contractor, not the seller.
B) When the seller is likely to cut corners
Let’s be honest: some sellers hire the cheapest vendors.
You don’t want:
-
Low-quality work
-
Unlicensed contractors
-
Rushed repairs
-
Patch jobs
Concessions prevent these risks.
C) When time is tight
If we’re nearing the Option Period end or closing date, repairs may delay the entire transaction.
Concessions keep everything on schedule.
D) When the buyer wants control
If you want the work done to your standards or you plan to remodel anyway, concessions give you the flexibility to make the improvements however you prefer.
E) When the seller refuses repairs but is open to money
This happens constantly.
A seller may say:
“We won’t fix the HVAC—but we’ll give you $3,000.”
This is a win-win.
F) When repair quality affects long-term value
Some repairs—like foundation or electrical—affect resale value.
You want them done correctly, not cheaply.
G) When the lender allows concessions
Different loan types allow different limits:
✔️ Conventional: Up to 3%–9% depending on down payment
✔️ FHA: Up to 6%
✔️ VA: Up to 4%
✔️ USDA: Up to 6%
I make sure the concession amount fits your loan.
4. When Repairs Are Better Than Concessions
Sometimes repairs make more sense.
✔️ Safety concerns (electrical, gas leaks)
✔️ Active plumbing leaks
✔️ Roofing issues that risk further damage
✔️ Foundation problems requiring stabilization
✔️ WDI/Termite issues (often handled by seller)
✔️ Lender-required repairs
These are often best handled BEFORE closing.
5. When Concessions Can Save a Deal
If the seller refuses repairs, concessions often become the compromise:
✔️ Cheaper for seller
✔️ More flexible for buyer
✔️ Faster to agree on
✔️ Less emotional
✔️ Doesn’t require contractor scheduling
I’ve saved many transactions by pivoting to concessions.
6. How I Negotiate Concessions in Texas
When representing buyers, I:
✔️ Gather repair estimates
✔️ Justify the request with evidence
✔️ Use inspection language strategically
✔️ Present the case professionally
✔️ Communicate urgency
✔️ Build a strong financial argument
Negotiation is about logic + leverage—not emotion.
7. How Concessions Affect Your Payment
Concessions can be used to:
✔️ Reduce cash-to-close
✔️ Lower your monthly payment (rate buydown)
✔️ Cover prepaid taxes
✔️ Offset lender fees
✔️ Help with appraisal gaps (strategy required)
This gives you flexibility that repairs cannot.
8. Concessions Can Be a Win for Sellers Too
Sellers often prefer concessions because:
✔️ No scheduling repairs
✔️ No paying contractors upfront
✔️ No repair inspections
✔️ No delay to closing
When both sides win, transactions stay smooth.
9. My Rule of Thumb
If a repair affects safety or structure: ask for repairs.
If it affects performance or convenience: ask for concessions.
This approach keeps negotiations efficient and protects your long-term investment.
Bottom Line: Seller Concessions Are a Powerful Negotiation Tool
Sometimes they’re the easiest solution.
Sometimes they’re the smartest solution.
Sometimes they’re the ONLY solution.
My job is to help you:
✔️ Choose the right strategy
✔️ Use your Option Period wisely
✔️ Protect your investment
✔️ Negotiate effectively
✔️ Get the best possible terms
You’ll never have to navigate this alone.
Want a Realtor Who Knows When to Use Concessions vs. Repairs?
If you want an expert negotiator who knows how to maximize your leverage, I’d love to help.
