09/24/2026
Realtors: Seller-Paid Closing Costs - More Isn’t Always Better
I have been getting a lot of questions about excessive closing cost requests.
Loan programs allow sellers to contribute up to certain maximum percentages toward a buyer’s closing costs. But the maximum allowed isn’t necessarily the amount your buyer needs.
If your buyer only needs $7,000 to cover their eligible closing costs and prepaids, asking the seller for $12,000 may not provide an additional benefit to the buyer, and it could make the offer less attractive to the seller.
That’s why I like to calculate the numbers before the offer is written.
Knowing the estimated closing costs allows us to structure the request around what the buyer is realistically expected to use rather than automatically asking for the maximum.
A lower seller contribution can mean:
A cleaner, more competitive offer 🏆
The buyer still gets the assistance they need 💲
Less chance of negotiating credits the buyer ultimately can't use ✅
And if the cost estimate from another lender seems unusually high, I’m always happy to provide a second opinion.
Sometimes keeping the financing costs down can help us strengthen the offer without taking anything away from the buyer.
Before you write the offer, let's run the numbers. Let’s figure out what your buyer ACTUALLY needs. ~Lara
