Seller Concessions

Credits from the seller that reduce your out-of-pocket closing costs.

Example Result

Sample Data

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

See Your Own Properties

With the Rental Property Calculator™, you can run this calculation against your own rental properties using your real numbers.

View Pricing Sign In

Seller Concessions Formula

Purchase Price × Seller Concessions %

$385,000 × $0 %

What This Means

A sample property priced at $385,000 with $2,850/month rent has a seller concessions of $0. Seller concessions lower your out-of-pocket costs, improving your cash-on-cash return and reducing the barrier to entry. They are especially valuable in buyer's markets or when a property has been sitting on the market. However, they don't reduce the loan amount, so your monthly payment stays the same.

Where to Find This Value

Here's where you can find the value for Seller Concessions:

Purchase Contract

Seller concessions are negotiated in the purchase contract

Negotiation Terms

Agreed-upon seller credits toward closing costs or repairs

Calculated From

Seller Concessions is calculated using these inputs:

Purchase Price

The agreed-upon price to acquire the property.

Found on your purchase contract / hud-1

$385,000

Used to Calculate

Seller Concessions is used as an input for these calculations:

Platform Distribution

Unlock Platform Benchmarks

See the average, median, and where your property ranks among 105 properties on the platform.

Unlock Rental Property Calculator

Why It Matters

Seller concessions lower your out-of-pocket costs, improving your cash-on-cash return and reducing the barrier to entry. They are especially valuable in buyer's markets or when a property has been sitting on the market. However, they don't reduce the loan amount, so your monthly payment stays the same.

Detailed Explanation

Seller Concessions are credits the seller agrees to pay toward your closing costs, prepaid items, or other buyer expenses. They reduce the total cash you need at closing without changing the purchase price. Concessions are negotiated as part of the purchase agreement and are subject to lender limits (typically 2–6% of purchase price depending on loan type and down payment).