Salt Lake Buyer Concessions & Closing Cost Credits | Northern Utah Homebuying Guide

Why Seller Concessions Are Critical in Today’s Utah Market

• With home prices leveling off and inventory slowly increasing, buyers in Salt Lake County and surrounding areas now have more negotiating strength than they have in recent years.

• Many sellers in the SLC metro area are already including $8,000–$15,000 in concession credits for closing costs or rate buydowns on comparable homes.

• Rising mortgage rates (many buyers are seeing offers in the 5.5%–6.5% range) make reducing monthly payments more critical than ever.

• In Davis County, there is also county-level homeownership assistance funding that can be layered on top of seller concessions, creating further leverage for you as a buyer.

By using concessions strategically, you can stretch your budget further—entering your new home with less cash out of pocket and enjoying a more comfortable mortgage payment from day one.

Types of Seller Concessions You Can Negotiate

Below are the most common forms of seller concessions in Utah and how they can help you as a buyer:

1. Closing Cost / Escrow Credits
   Let the seller pay part or all of your closing fees (including lender fees, title fees, recording fees, escrow fees, etc.). Many lenders allow up to 3 % of the purchase price in seller credit toward those buyer-paid costs (depending on loan type).

2. Interest Rate Buydowns (Temporary)
   The seller prepays points to lower the effective interest rate you pay for a period (1–3 years). For example, a 2/1 buydown lets you pay a lower rate in years 1 and 2 before reverting to the full note rate.

3. Prepaid Taxes or Insurance / HOA Dues
   The seller pays for your first year’s property taxes, homeowner’s insurance, or even HOA fees. This reduces what you have to bring to the closing table.

4. Repair Credits / Inspection Credits
   If the inspection reveals issues and the seller doesn’t want to make repairs, they may issue you a credit so you can fix them yourself after closing.

5. Builder Incentives on New Construction
   Builders sometimes offer buyer incentives such as rate buydowns or closing cost credits to move inventory—especially in Northern Utah subdivisions.

How Much Concession Can You Ask For?

It depends on the mortgage product and down payment, but here is a general guideline:

*Always confirm with your lender. Some loan programs or credit products may have stricter limits, and not all costs qualify as eligible concessions.

Also note that sellers in Utah often already pay 6% (or more) in commissions and closing expenses, which provides some room for negotiation.

Step-by-Step Strategy: Negotiating Seller Credits (With Real Local Context)

1. Get pre-qualified first
   Know your lender’s limits and the exact amount you can afford to bring to closing. This lets you ask credibly and confidently.

2. Include a clear seller credit line in your offer
   Example: “Seller to credit $10,000 toward buyer’s closing costs, rate buydown, and prepaids.” Be specific.

3. Break down the use of that credit
   Sellers (or their agents/lenders) will feel more comfortable if you detail how the credit is allocated (e.g. $6,000 to closing costs, $3,000 to 2/1 buydown, $1,000 to prepaids).

4. Use comps and market data
   Show that in the neighborhoods you’re targeting (e.g., Murray, Herriman, Farmington, Bountiful), sellers are granting concessions. That helps your ask not look out of line.

5. Offer givebacks in return
   If the seller resists, propose splitting the credit, or let them choose which category (closing vs buydown) they’d rather fulfill. Additionally, offering a higher earnest money deposit can demonstrate seriousness.

6. Watch appraisal and value issues
   The home must appraise at the contract value. If the credit is masked or viewed as a hidden price cut, the lender or appraiser may push back.

7. Double-check closing docs
   As we approach closing, verify that the credit is applied correctly and no additional fees are added. I’ll help with this if I’m your agent.

Real-World Example (Hypothetical, Northern Utah)

Let’s say you find a home in Farmington listed at $550,000.

• You request a $12,000 seller concession (~2.18%).

• You structure it: $6,000 to closing cost, $4,000 to a 2/1 buydown, $2,000 to prepaids.

• The seller counters with a total of $8,000. You agree, but ask them to prioritise the buydown portion.

• The contract proceeds. At closing, you verify the credits are properly shown on the HUD/Closing Disclosure.

• As your realtor, I’ll walk you line-by-line to ensure everything is honored (so you don’t get surprised at closing).

This kind of structure is practical, realistic, and ensures you get real value.

Why Partnering With Me Gives You a Big Advantage

• I monitor active and recently closed listings across Salt Lake, Davis, Weber, and Utah counties to see precisely how much credit sellers are conceding in the current market.

• I model scenarios for you upfront (closing costs, buydown options, and tax/insurance prepaids) so we negotiate based on real numbers—never guesswork.

• I know lender and loan-program constraints (contribution caps, qualifying costs) and structure your credits so they comply.

• I negotiate boldly yet cleanly, making your ask clear and reasonable, minimizing pushback from the seller or their agent.

• As your advocate, I’ll review the closing documents and ensure the credit is applied correctly—so you don’t overpay at the table.

Pro Tips & Warnings to Watch Out For

• Don’t overshoot: Asking for too much can kill a deal or scare sellers away. Be reasonable and data-driven.

• Know the limits: Some credits aren’t allowed (or are limited) depending on your loan product—always check with your lender.

• Appraisal ceiling: If the contract value plus credit exceeds the value, there may be issues.

• Temporary Buydown Reset: Ensure you understand when your rate resets and the implications for future payments.

• Keep it transparent: Avoid vague language like “help buyer as needed.” Spell out what the credit is for.

Let’s Get You the Best Deal — With Lower Up-Front Costs

Buying a home in Salt Lake County or Northern Utah doesn’t have to drain your savings. By strategically negotiating seller concessions, rate buydowns, and prepaid credits, you can dramatically reduce your out-of-pocket cash at closing.

As your local buyer’s agent, I’ll:

• Analyze your numbers and loan limits

• Recommend the optimal credit request

• Negotiate fiercely on your behalf

• Audit the closing documents to make sure nothing slips through

Contact me today for a Free Concession Strategy Session—we’ll run the numbers for your target neighborhoods and build your best possible offer. Call, text, or email. Let’s make your next move the smartest one yet.

Sources

• “Seller Concessions,” National Association of REALTORS®

• “Understanding Seller Concessions,” SoFi

• “Seller Contribution Maximums for Conventional, FHA, VA, USDA” My Mortgage Insider

• “FHA 2/1 Buydown Utah” — Ivory Homes Blog

• “What is a 3/2/1 Rate Buydown?” — Visionary Homes

• “Who Pays Closing Costs in Utah?” — Houzeo

• “Closing Costs in Utah: Who Pays What?” — Bankrate

• “Closing Costs in Utah Guide — HomeLight