If you're buying a home in Santa Clarita, Valencia, Saugus, Newhall, Stevenson Ranch, Canyon Country or Castaic concessions can help reduce your out-of-pocket costs—especially in a shifting market. But what are they, and how do they work?

Concessions are benefits that a seller agrees to provide a buyer, typically to make the deal more appealing or help offset buyer expenses. They're common in buyer-favorable markets or when a home needs updates.

Types of Buyer Concessions

  1. Closing Cost Credits: Seller pays a portion of the buyer’s closing costs, reducing your cash needed to close.
  2. Rate Buydowns: Seller contributes to lowering the buyer's interest rate.
  3. Repair Credits: Instead of fixing issues, the seller offers money back at closing.
  4. Home Warranty: A one-year policy covering major systems/appliances.

When Are Concessions Most Common?

  • Homes that have sat on the market
  • Properties needing updates or repairs
  • End-of-year or off-season sales
  • Buyer markets with more inventory than demand

How Much Can a Seller Contribute?

It depends on the loan type:

  • Conventional: Up to 3%–6% of the purchase price
  • FHA: Up to 6%
  • VA: Up to 4% (plus additional costs)

Always consult with your lender and agent to structure the offer correctly.

Local Insight: Santa Clarita Trends

In some parts of Santa Clarita, especially during slower months or with fixer properties, seller credits of $5,000–$15,000 aren’t uncommon.

Thinking about buying in Santa Clarita? I can help you negotiate smart—and follow me on social for local tips and opportunities.

Ready to make your next move in Santa Clarita?


Contact Tami Cicerello with The Cicerello Team at RE/MAX Of Santa Clarita — your local real estate expert with 36+ years of experience helping sellers and buyers reach their goals.
📞 661–212–3413| ✉️ TamiCicerello@gmail.com
Follow for more Santa Clarita real estate tips and listings:
👉 [Instagram] | [YouTube] | [Facebook]

Written by Tami Cicerello, REALTOR® and local real estate expert serving Santa Clarita, Valencia, Saugus, Newhall, Stevenson Ranch, Canyon Country and Castaic.