What are seller credits or seller concessions?

A buyer may ask for seller credits in a purchase contract. Seller credits are typically a monetary amount that a buyer may ask for to help with their closing costs. For example, say a property is listed at $95,000, a buyer may offer $100,000 with a $5,000 seller credit. The Buyer is still paying the Seller list price for the property but that $5,000 that is taken out of the Sellers proceeds will go a long way in helping the buyers total out of pocket cost to close on a property. The buyer may not offer a full list price and still ask for a seller credit back. As a seller it’s important to calculate your net proceeds after the seller credit.