If you're selling a home in Utah, don't be surprised if a buyer asks for $10,000 toward closing costs, a home warranty, or help paying HOA fees. And if you're buying, these are all things we can consider negotiating.
The purchase price is only one part of an offer. A $500,000 offer with $15,000 in seller concessions is very different from a $500,000 offer without them.
Let's go over what buyers can ask for, how seller concessions work, and what both buyers and sellers should consider before agreeing to them.
What Are Seller Concessions?
Seller concessions are contributions a seller agrees to make toward certain expenses associated with the buyer's home purchase.
For example, a buyer might offer $500,000 for a house and ask the seller to contribute $10,000 toward closing costs. The home still sells for $500,000, but the seller pays $10,000 toward the buyer's eligible expenses. That reduces the seller's proceeds by $10,000 before considering other selling expenses.
For buyers, it can mean bringing less cash to closing.
Seller concessions aren't cash the buyer gets to pocket. The buyer's lender must approve the amount and how the funds are used.
Why Are Buyers Asking for Seller Concessions in Utah?
We're competing pretty intensely with new construction in Utah County. Builders have been offering closing cost assistance, mortgage rate incentives, and other benefits to attract buyers. When someone is comparing an existing home against a brand new one with financing incentives, those offers can influence their decision.
In my September 2026 Utah County market report, 66% of the 726 homes sold included seller concessions. The median concession among those sales was approximately $10,000. That's consistent with what I've been seeing in my own transactions.
It doesn't mean every seller needs to offer $10,000, but I want my sellers to be prepared for buyers to ask. In a stronger seller's market, buyers generally have less negotiating room.
What Can Buyers Ask Sellers to Pay For?
1. Closing Costs and Mortgage Rate Buydowns
This is what I see buyers requesting most often. In recent Utah County transactions, buyers have commonly asked for around $10,000 in closing cost assistance. Depending on the loan, seller contributions may help cover eligible lender fees, title charges, prepaid expenses, or mortgage discount points.
Buyers may also ask for help reducing their mortgage interest rate. A permanent rate buydown involves paying discount points to obtain a lower rate for the life of the loan. A temporary buydown, like a 2-1 buydown, lowers the rate for the first year or two before it returns to the full note rate. With rates where they are right now, a seller or builder credit toward a buydown can make a meaningful difference in the monthly payment, sometimes more than simply cutting the purchase price by the same amount. Your lender can run both scenarios so you can see which one actually helps you more.
2. A Home Warranty
Buyers often ask the seller to pay for a one-year home warranty. It's a relatively small cost that can give a buyer peace of mind on things like the furnace, water heater, and appliances during their first year in the home. For a seller, it's usually an inexpensive concession that can help a nervous buyer move forward.
3. HOA Fees or Transfer Costs
In communities with a homeowners association, a buyer may ask the seller to cover HOA transfer fees, a few months of dues, or other association costs that come up at closing. In parts of Utah County where HOA and PID costs are a real part of ownership, this can matter to a buyer's bottom line.
4. Repairs or a Repair Credit
After an inspection, a buyer may ask the seller to make repairs or, more commonly, to give a credit at closing so the buyer can handle the work themselves. A credit is often cleaner for both sides, since it lets the buyer control the quality and timing of the work after closing rather than rushing repairs before it.
5. Prepaid Taxes, Insurance, or Interest
Seller contributions can sometimes go toward prepaid items a buyer owes at closing, such as property taxes, homeowners insurance, or prepaid interest, within the limits the buyer's loan allows.
There Are Limits on Concessions
This is important for both sides to understand. Loan programs cap how much a seller can contribute, and the limit depends on the loan type, the occupancy, and the buyer's down payment. Conventional, FHA, VA, and USDA loans each have their own rules.
The concession also can't exceed the buyer's actual costs. If a buyer negotiates $15,000 but only has $11,000 in eligible closing costs and prepaids, the extra typically can't just be handed over. The buyer's lender is the final word on how much can be applied and where. That's why I always want a buyer's lender involved early when we're structuring a concession, so we don't agree to something that won't actually work at closing.
What Buyers Should Consider
A concession can be the thing that makes a purchase possible, especially if you're short on cash to close or trying to manage a higher monthly payment. But run the actual numbers with your lender first.
Sometimes money toward a rate buydown saves you more over time than the same money off the price. Other times, lowering the purchase price matters more, especially if it also lowers your property tax basis and the loan amount you carry. The right answer depends on your loan, how long you plan to stay, and your overall financial picture. There isn't one answer that fits everyone, which is exactly why it's worth running the comparison.
What Sellers Should Consider
If you're selling, the first thing to know is simple: expect buyers to ask. In today's Utah County market, a concession request is normal, not an insult.
A few things to think through:
- Look at your net, not just the price. A full price offer with a $12,000 concession nets you the same as a lower offer with none. Focus on what actually lands in your pocket.
- A concession can hold your headline price. Agreeing to pay a buyer's closing costs lets you keep a stronger recorded sale price than cutting the price outright. That can matter for the comps in your neighborhood.
- Build it into your pricing strategy up front. If most buyers in your area are asking for help, pricing without accounting for that can leave you surprised at the negotiating table. It's better to plan for it than react to it.
- Know what builders near you are offering. If a buyer can get a big incentive package on a new home down the street, that's part of what you're competing against.
The Bottom Line
Seller concessions are one of the most useful tools in today's Utah market, for both sides. For buyers, they can lower the cash needed to close or bring down the monthly payment. For sellers, they can keep a deal together and protect your headline price while still competing with new construction.
The key is understanding that the purchase price is only part of the story. A smart offer, on either side, looks at the whole deal.
If you're buying or selling in Utah County and want to talk through how concessions might fit your situation, that's exactly the kind of thing I help clients think through.
Frequently Asked Questions
What are seller concessions? Seller concessions are contributions a seller agrees to make toward certain costs of the buyer's purchase, such as closing costs, a rate buydown, a home warranty, or HOA fees. The home still sells at the agreed price, but the seller credits money toward the buyer's eligible expenses, which reduces the seller's net proceeds.
What can a buyer ask the seller to pay for in Utah? Commonly, closing costs, mortgage rate buydowns, a one-year home warranty, HOA transfer fees or dues, repair credits, and sometimes prepaid taxes, insurance, or interest. The buyer's lender must approve the amount and how the funds are used, and loan programs cap how much a seller can contribute.
How much can a seller contribute toward a buyer's costs? It depends on the loan type, occupancy, and down payment. Conventional, FHA, VA, and USDA loans each set their own limits, and the concession can't exceed the buyer's actual eligible costs. The buyer's lender is the final word, so involve them early when structuring a concession.
Is a seller concession the same as lowering the price? No. A concession keeps the recorded sale price the same while the seller credits money toward the buyer's costs. Lowering the price reduces the recorded sale amount and the loan. Depending on the situation, one can help the buyer more than the other, so it's worth running both scenarios with a lender.
Are seller concessions common in Utah County right now? Yes. In the September 2026 Utah County market, about 66% of homes sold included a seller concession, with a median around $10,000. New construction incentives are a big reason, since resale sellers are often competing with builders offering closing cost help and rate buydowns.
Do seller concessions mean I'm getting a worse deal as a seller? Not necessarily. What matters is your net, not just the headline price. A full-price offer with a concession can net you the same as a lower offer without one, while keeping a stronger recorded sale price for your neighborhood's comps.
Related Reading
- New Construction vs. an Existing Home in Utah County
- Is Buying a Home the Right Move in 2026? A Utah County Buyer's Guide
- Utah County Home Sales: September 2026 Market Report
- What Adds Value to a Home in Saratoga Springs
This article is for general informational purposes only and is not legal, tax, or financial advice. Loan program concession limits and eligibility vary, so confirm the details with your lender and consult a qualified professional for guidance specific to your situation.