Selling a House: Who Pays Closing Costs When a Buyer Requests a Credit?

Identify what the buyer is actually asking for

A request that the seller “pay closing costs” can be too vague to evaluate. Ask for the proposed amount, intended use, and contract language. Determine whether it refers to a general closing-cost credit, a repair allowance, a particular charge, or compensation addressed in a separate agreement.

The National Association of REALTORS® seller-concessions guide explains that concessions can help with buyer purchase expenses and are negotiated as part of the transaction. Put the actual agreement in writing rather than relying on a verbal understanding.

Compare the price after the requested credit

Illustration: Offer A is $425,000 with a $10,000 seller credit. Offer B is $418,000 with no such credit. Before other differences, the price less the requested credit is $415,000 for A and $418,000 for B. The higher headline offer does not win that particular comparison.

This is only a first pass. Ask for a complete seller net estimate for each offer. Charges linked to the price, other credits, repair obligations, and different closing dates can change the result. Use the same assumptions so you are comparing the offers fairly.

A price reduction and a closing credit solve different problems

A lower price reduces the purchase price. An eligible closing credit can help cover permitted expenses at settlement. For a buyer who has enough income to qualify but limited closing cash, those two arrangements may have different practical value.

Ask what problem the buyer needs to solve before deciding how to respond. You might accept, decline, or counter with another amount or structure. There is no single best response for every listing; consider demand, competing offers, your priorities, and the likelihood of a completed sale.

Confirm lender rules before promising a credit

The buyer’s lender must confirm what the loan program allows, which costs qualify, and whether the proposed credit is usable. Avoid assuming that a single percentage applies to every mortgage. Fannie Mae’s selling guide, for example, places conditions on financing concessions, including a limit tied to the borrower’s actual closing costs. Other programs have their own rules.

Ask how the contract handles any unused amount. Do not assume an unused credit becomes unrestricted cash to the buyer or automatically changes the price. Have the agent, lender, and closing professional coordinate the wording before the parties rely on it.

Evaluate the rest of the offer alongside the money

Compare financing terms, inspection and appraisal conditions, deposit provisions, closing timing, and any need for post-closing occupancy. A financially attractive offer can still create a mismatch with your move if the timing is unworkable.

Write down the two or three terms that matter most to you before comparing offers. That makes it easier to decide whether a credit is an acceptable trade for a stronger schedule or another useful term. Your agent can help identify the practical risks; an attorney should address questions about legal obligations.

Review the final statement and choose your next step

Before closing, compare the agreed credit with the final settlement statement. Ask the closing professional to explain changes in the net estimate. Check that the same concession has not been counted twice in your own planning worksheet.

If you are reviewing an offer now, request two estimates: one under the proposal and one under the counteroffer you are considering. Use those alongside the non-price terms before deciding.

My free Maine Home Seller’s Guide includes an offer-comparison worksheet and a proceeds worksheet. Get your free copy through the Home Seller’s Guide form and bring both to your offer discussion.

I’m Tony Duong with Landing Real Estate. Contact me to compare an offer’s price, credit, and timing. Information checked October 23, 2026.