What is a Seller Credit in Real Estate?

What is a Seller Credit in Real Estate?

A seller credit in real estate is when the seller agrees to pay a portion of the buyer's closing costs, either as a specific dollar amount or a percentage of the sale price. This arrangement can help make a home purchase more affordable for the buyer by reducing the amount of cash needed at closing. Seller credits are negotiated during the sale process and are typically included in the purchase agreement. They can be used to cover various buyer expenses, such as loan origination fees, appraisal fees, title insurance, and more. While beneficial for buyers, sellers may offer credits to attract more potential buyers or expedite the sale of the property, though it effectively reduces their net proceeds from the sale.