Short answer: Maybe.

I wouldn’t reject a good offer just because the buyer asked you to help with closing costs.

And I wouldn’t automatically agree to pay them either.

What I care about is much simpler:

What are you actually walking away with, and what are you giving up to get the deal done?

Sellers sometimes get hung up on the words “seller-paid closing costs.”

I understand why. It feels like you’re paying the buyer’s bills.

But sometimes an offer with a closing-cost request can actually be better than another offer without one.

You have to look at the whole deal.

What Are Seller-Paid Closing Costs?

A buyer has expenses on top of their down payment when they purchase a home.

Depending on the loan and transaction, those costs can include things like lender fees, title charges, prepaid taxes and insurance, appraisal costs and other expenses connected with closing.

Sometimes a buyer asks the seller to contribute money toward those costs.

You may hear it called:

• Seller-paid closing costs
• Seller assistance
• Seller concessions
• Seller credit

For what we’re talking about here, the basic idea is the same:

The seller agrees to give the buyer a credit at closing.

The Consumer Financial Protection Bureau explains that buyers and sellers can negotiate a seller credit toward a buyer’s closing costs.

Does That Mean I’m Losing That Money?

Yes — but that’s not the only number that matters.

Here’s a very simple example.

Suppose you’re selling your Smithfield home and get these two offers:

*This is only a simple comparison before the other costs and terms of the transaction are considered.

If you only look at the $10,000 credit, Buyer A may sound terrible.

But once you look at the numbers, the difference isn’t nearly as dramatic.

And we’re still not finished.

What about financing?

Inspection terms?

Closing date?

Appraisal risk?

Contingencies?

How strong is the buyer?

Those things matter too.

I don’t compare offers one line at a time. I compare the whole offer.

Why Would a Buyer Need Closing-Cost Help?

Sometimes they simply don’t have a lot of extra cash after the down payment.

That doesn’t necessarily mean they’re a weak buyer.

A buyer might have solid income and good credit but would rather keep some cash available after closing instead of emptying the bank account.

Moving costs money.

Furniture costs money.

And houses have a funny way of needing something right after you buy them.

So I don’t automatically see a closing-cost request as a red flag.

I want to understand the buyer and the offer.

Should I Just Raise the Price to Cover the Credit?

Sometimes buyers structure an offer that way.

For example, instead of offering $390,000 with no assistance, they may offer more and ask the seller for a credit.

That can work.

But there’s an important catch:

The house still has to appraise.

The CFPB specifically points out that when a higher purchase price is used to help cover a seller credit, the appraisal can become an issue if the home doesn’t support that price.

So we can’t simply add $10,000 to any price and pretend the problem disappeared.

The numbers still have to make sense.

Are Buyers Asking for More Help Right Now?

Buyers around Hampton Roads have more choices than they did a year ago.

REIN reported more than 6,000 active residential listings across Hampton Roads in July 2026, up 7.64% from the prior year.

That doesn’t mean buyers are suddenly calling all the shots.

It does mean sellers may see more negotiation than they did when inventory was extremely tight.

That could involve:

• Price
• Closing costs
• Repairs
• Closing dates
• Personal property
• Other contract terms

And that’s okay.

A market where people negotiate is still a market where homes sell.

Would I Rather Lower the Price or Pay Closing Costs?

That depends on what we’re trying to accomplish.

Let’s say a buyer is short on cash for closing but can handle the monthly payment.

A seller credit may help that buyer more than the same dollar amount knocked off the price.

On the other hand, if buyers are telling us the house itself is overpriced, a credit may not solve the real problem.

That’s where we have to separate two questions:

Does this buyer need help getting the transaction closed?

or

Is the market telling us the home is priced too high?

Those aren’t the same thing.

What If the Buyer Also Wants Repairs?

Now we really need to look at the whole offer.

Suppose a buyer asks for $8,000 in closing costs.

Then after the inspection, they ask for another $7,000 worth of repairs.

Suddenly the deal looks a lot different than it did on day one.

That doesn’t mean we say no to everything.

It means we need to know where our line is.

Sometimes instead of making a repair, a seller and buyer may agree on a credit toward closing costs. The CFPB even notes that seller credits can sometimes be used instead of completing an agreed repair before closing.

Again, there are different ways to solve the same problem.

Don’t Forget the Loan Has Rules Too

This part is important.

A seller and buyer can’t necessarily pick any credit amount they want.

Loan programs have rules about how much a seller can contribute and what those funds can be used for.

For example, Fannie Mae has specific limits on what it calls interested party contributions, and those limits can change depending on factors such as occupancy and the buyer’s loan-to-value ratio.

That’s why the buyer’s lender needs to be involved when we’re structuring this part of an offer.

I’m not going to guess at what someone’s loan allows.

I want the lender to tell us.

What If I Get Two Offers?

This is where sellers sometimes make a mistake.

They immediately pick the highest number.

I wouldn’t.

Imagine:

Offer #1: $410,000 with a big closing-cost credit, financing contingency and several other conditions.

Offer #2: $402,000 with no credit, strong financing and cleaner terms.

Which is better?

I don’t know yet.

And neither does anyone else just from those two prices.

We need to look at:

• Your estimated proceeds
• Financing
• Seller credits
• Down payment
• Earnest money deposit
• Inspection terms
• Appraisal risk
• Closing date
• Contingencies
• Anything else the buyer is asking for

The highest offer isn’t always the best offer.

And getting buyers through the door without offers can give us useful clues before we ever reach this point.

The best offer is the one that gives you the best combination of money, terms and likelihood of actually closing.

What I’d Tell a Smithfield Seller Sitting Across the Table From Me

If you get an offer asking for closing costs, don’t let that one line make the decision for you.

Let’s run the numbers.

Let’s look at the buyer.

Let’s look at everything else they’re asking for.

And then let’s compare that offer with your other options.

Sometimes my advice will be:

“No. That’s too much.”

Sometimes it’ll be:

“Let’s counter.”

And sometimes I may tell you:

“If this gets us where you want to go, I’d take the deal.”

That’s what negotiation is.

It isn’t about winning every line item.

It’s about getting the overall result that makes sense for you.

Thinking About Selling Your Home?

If you’re thinking about selling a home in Smithfield, Isle of Wight, Carrollton, Suffolk or elsewhere in Hampton Roads, we can talk about more than just what price to put on it.

We can also talk about the kinds of offers you may see and what those offers could actually mean to your bottom line.

Call or text me at 757-880-7061 or email me at [email protected].

Ask me anything. I’m happy to talk it through.

Jason Goodin
Principal Broker
Virginia 1st Realty Group

Frequently Asked Questions

Do sellers have to pay a buyer’s closing costs?

No. Seller-paid closing costs are negotiable. A buyer can ask for them, and the seller can accept, reject or counter the request.

Is paying closing costs better than lowering my price?

Sometimes. A closing-cost credit may help a buyer who needs cash to complete the purchase, while a price reduction addresses the value of the home itself. Which makes more sense depends on the offer and the situation.

Can I raise the sales price if I agree to pay closing costs?

Sometimes an offer is structured with a higher price and a seller credit, but the property still has to support the agreed price for financing and appraisal purposes.

Is there a limit on how much closing-cost help a seller can give?

There can be. Loan programs have their own rules and limits on seller contributions, so the buyer’s lender should confirm what is permitted for that particular loan.

Should I reject an offer because the buyer asks for seller assistance?

Not automatically. Compare the seller’s expected proceeds and all of the other terms before deciding whether the offer makes sense.