Hi Yardy: If you're buying a house, congratulations. It's a great time to buy. If you're considering making an offer on a property with a "seller's concession", I would assume that you are borrowing some of your closing costs along with the price of the house. Closing costs usually total between 4 to 6% of the amount you borrow - expect 6% most of the time. Let's use a simple number like $100,000. If you are financing half of your closing costs (3%), the amount financed would be approximately $103,000 and the house would therefore have to appraise at $103,000 instead of $100,000. The reason they call it a seller's concession is that the owner is willing to "concede" that the house is worth more than they are getting. I hope this helps. If you have any other questions, please feel free to contact me.
Century 21 Princeton Properties