Negotiation
Concession & Offer Scripts
Verbatim language for the TREC One-to-Four Family Residential Contract. Copy, adapt the numbers, and paste into the matching paragraph. Have your agent verify before submission.
Concession caps by loan type
| Loan | Max seller concession | What it can pay |
|---|---|---|
| Conventional >90% LTV | 3% of price | Closing costs, prepaids, buydown |
| Conventional 75–90% LTV | 6% | Same |
| FHA | 6% | Same |
| VA | 4% (plus unlimited "closing costs") | Same, plus payoff of debts |
| USDA | 6% | Same |
Core seller concession (closing costs)
Paragraph 12.A.(1)(b)
Standard 3% seller concession toward buyer's closing costs
Seller shall pay an amount not to exceed three percent (3.000%) of the Sales Price toward Buyer's loan-related closing costs, prepaids, escrows, and discount points, as permitted by Buyer's lender.
Paragraph 12.A.(1)(b)
Flat-dollar concession
Seller shall pay $10,000.00 toward Buyer's loan-related closing costs, prepaids, escrows, and discount points, as permitted by Buyer's lender. Any unused portion shall be retained by Seller.
2-1 temporary rate buydown
Paragraph 12.A.(1)(b) or Special Provisions (11)
Seller-funded 2-1 buydown
Seller shall fund a 2-1 temporary interest rate buydown for Buyer's benefit, estimated at approximately two percent (2.000%) of the loan amount, in addition to other concessions in Paragraph 12. Buyer's lender shall provide the exact buydown cost no later than three (3) business days prior to Closing.
Repair credit (after inspection)
Amendment to Contract (TXR 1903), Paragraph 4
Repair credit in lieu of repairs
In lieu of completing repairs identified in Buyer's inspection reports, Seller shall provide Buyer with a closing cost credit of $4,500.00 at Closing, applied to Buyer's loan-related closing costs and prepaids as permitted by Buyer's lender. Buyer accepts the Property in its current condition with respect to the items identified.
Home warranty + survey
Paragraph 7.G or Special Provisions (11)
Seller-paid home warranty
Seller shall pay for a one-year residential service contract issued by ___________ at a cost not to exceed $695.00, with optional coverages for HVAC, pool/spa, and pre-existing conditions as selected by Buyer.
Paragraph 6.C.(1)
Existing survey accepted with T-47
Seller shall, at Seller's expense, deliver to Buyer and the Title Company within three (3) days after the Effective Date the existing survey and a Residential Real Property Affidavit (T-47).
Appliances + window treatments
Paragraph 2.B
Refrigerator, washer, dryer included
In addition to items listed in Paragraph 2.B as a matter of standard inclusion, the following are included in the sale at no additional cost: refrigerator, washer, dryer, and all window treatments (rods, blinds, curtains, and hardware).
Lender-paid mortgage insurance request
Special Provisions (11)
Lender credit toward LPMI (when seller cap is reached)
Buyer reserves the right to direct any excess seller concession toward lender-paid mortgage insurance (LPMI) in lieu of monthly PMI, subject to lender approval.
Strategic tips
- Concession beats price reduction when you're cash-constrained - same total to seller, but you keep more in your pocket at closing.
- Use the full cap if your lender lets you. Unused concession reverts to seller, so size it to actual costs.
- Buydown is more powerful in the first 2 years than a permanent rate cut when you expect to refinance.
- Avoid "below-the-line" concessions the lender won't allow (cash back to buyer, off-HUD payments). They are mortgage fraud.