What does the term “seller concessions” refer to in a real estate transaction?

The term "seller concessions" specifically refers to contributions made by the seller to cover closing costs in a real estate transaction. This practice is common in various markets, allowing buyers to reduce their out-of-pocket expenses when finalizing a home purchase.

Seller concessions can include the seller agreeing to pay for a portion of closing costs, such as title insurance, fees for appraisals, or points that reduce the mortgage interest rate. This can be an attractive option for buyers who may be financially constrained or who want to maximize their cash flow.

The other options describe different aspects of real estate transactions but do not capture the essence of seller concessions. For instance, a discount on the sale price pertains to a reduction in the overall listing price but does not directly relate to closing cost assistance. Financing provided by the seller could indicate a creative financing arrangement but does not reflect the standard definition of seller concessions. Lastly, waiving certain contingencies refers to an offer strategy rather than any direct financial assistance from the seller, thus distinguishing it from the concept of seller concessions.