Should You Ask for a Seller Concession When Buying in Bethesda, MD?

What Is a Seller Concession in a Maryland Home Purchase?

A seller concession is when the seller agrees to credit money toward your closing costs as part of the purchase agreement. You pay a negotiated price — and the seller hands a portion back at settlement to cover lender fees, title charges, prepaids, or even mortgage rate buy-downs.

It sounds counterintuitive. Why would a seller give money back? Because in many transactions, it’s the most efficient way to close the deal. A buyer short on cash to close is a deal that falls through. A seller who credits $10,000 toward closing costs can keep the deal together without necessarily netting less — often by accepting a slightly higher purchase price that offsets the credit.

It’s also worth knowing: post-NAR settlement, seller concessions are completely separate from buyer-agent compensation. Don’t confuse the two. Seller concessions apply to your closing-cost credits only. Agent compensation is a separate negotiation.

By Pey Behin | May 7, 2026

In Bethesda, I hear versions of this question constantly. Buyers are facing $800K, $1.2M, $1.6M purchase prices — and even a 2% concession on a $900K home is $18,000 that stays in your account instead of going to the title company.

The question isn’t really “can I ask?” You can always ask. The real questions are: when does it make sense, how do you structure it, and what are the limits?

Here’s how this actually works.

What You Can Use Concessions For

Seller concessions can be applied to virtually any buyer cost at settlement. In Maryland, that typically includes:

• Lender fees — origination, underwriting, processing, discount points
• Title and settlement costs — settlement fee, title search, lender’s title insurance, owner’s title insurance
• Prepaids — homeowners insurance, prepaid interest, property tax escrow
• Rate buy-downs — paying discount points upfront to permanently lower your interest rate

What they cannot be used for: concessions can’t go toward your down payment. They’re closing-cost credits only.

On a $900,000 home in Bethesda, your closing costs as a buyer (not counting the down payment) will typically run $18,000–$36,000 depending on your loan type, lender fees, and the title company. A 2% seller concession covers $18,000 of that. That’s real money.

The Loan Limits You Need to Know

Here’s where buyers get tripped up. Seller concessions are capped by your loan program — and if you ask for more than your loan allows, your lender will reduce it anyway at closing.

Conventional loans:

• Less than 10% down: maximum 3% seller concession
• 10–25% down: maximum 6%
• 25%+ down: maximum 9%

FHA loans: Maximum 6%

VA loans: Maximum 4% for non-allowable fees, plus additional amounts for discount points and certain other categories

Jumbo loans: Varies by lender, typically 2–3% — verify directly with your loan officer before structuring your offer

In Bethesda’s price range, most buyers are using conventional or jumbo financing. At 20% down on a $1M home, you can ask for up to 6% — that’s $60,000 in potential concessions. That’s the ceiling, not the target. What you actually get depends on the seller and the market.

When Asking Makes Sense

Not every offer should include a concession request. Here’s my read on when it works:

The home has been sitting. If a property in Bethesda, Potomac, or Chevy Chase has been on the market 21+ days without offers, the seller already knows they’re not getting their full ask. A concession request is reasonable and often welcome — it gets the deal moving without a price reduction that might complicate the appraisal.

You’re at a softer price point. The luxury end of the Montgomery County market ($1.5M–$2M) typically has more days on market and more negotiating room than the $700K–$1M range. More inventory, fewer competing buyers, more flexibility.

You’re using VA or FHA financing. Sellers in Maryland are generally familiar with government loans and concession requests. In a non-competitive situation, asking 3–4% is standard practice and rarely surprises anyone.

You want to fund a rate buy-down. With current interest rates, permanently buying down your mortgage rate by 0.5–0.75% can save you significantly more over a 30-year loan than the upfront cost. Using seller concessions to fund a rate buy-down is one of the most effective strategies buyers are using in this market.

When Asking Hurts You

Multiple offers. If you’re writing on a home that drew three showings the first weekend and the listing agent is collecting offers Monday at noon, a concession request signals you’re not putting your strongest foot forward. In a competitive offer situation in Bethesda, a clean offer without concessions — or one structured with an escalation clause — typically wins over a concession-heavy one.

New construction. Builders in Bethesda and North Bethesda rarely discount the base price, but they often offer incentives — “use our preferred lender and we’ll cover your closing costs.” The mechanics are similar, but builders structure it differently and usually won’t layer concessions on top of their existing incentive programs. Negotiate the incentives, not a separate concession.

When the price is already aggressive. If you’re already getting the home below asking, adding a concession request can sour the negotiation. Pick your battles.

How the Math Works — And Why Concessions Aren’t Free

Let me be direct about something buyers sometimes miss: a seller concession funded by a price increase isn’t free.

If you offer $950,000 and ask for a $15,000 concession, the seller may accept — but they’ll often counter at $965,000 with the $15,000 credit included. You’ve borrowed $15,000 more at your mortgage rate for the life of the loan.

On a 30-year loan at 6.5%, that extra $15,000 costs you roughly $34,000 in total interest paid. The upfront saving is real. The long-term cost is also real.

This doesn’t make concessions a bad idea — sometimes having more cash available at closing is worth paying a little more over time. But go in with clear eyes. The strongest use of a concession is when you redirect it toward a rate buy-down: seller-funded points that permanently lower your interest rate, reducing your monthly payment for the duration of the loan and saving you more in the long run than the concession cost you upfront.

Understanding your full buyer closing costs in Bethesda — lender fees, Maryland recordation and transfer taxes, title costs, prepaids — is the baseline for knowing how much concession makes sense to request. You don’t want to ask for more than you can actually apply at closing.

How to Structure the Request in Your Offer

In Maryland, seller concessions are written directly into the purchase contract — a specific line stating the seller agrees to contribute $X (or X%) toward buyer closing costs.

A few things to know:

The concession amount is tied to the appraised value. If the home appraises below your offer price, your concession may need to be reduced proportionally, depending on how the contract is written and what your lender requires. This is why pricing your offer realistically — rather than inflating it solely to fund a concession — matters.

You can also request a seller concession after the home inspection if the inspection surfaces material issues and you’re renegotiating the deal. Instead of asking for repairs, ask for a closing-cost credit. Sellers often prefer it — they don’t have to manage contractors, and the deal moves forward. It shows up at settlement exactly like a pre-negotiated concession.

The request has to fit within your loan cap. Your agent should confirm your loan type and down payment percentage before structuring the number so nothing gets clawed back at closing.

What This Looks Like in Bethesda’s 2026 Market

Demand remains strong in Bethesda, Potomac, and Chevy Chase — particularly in the $700K–$1.1M range where competition is highest. At this price point, concession requests in competitive situations are largely off the table.

In North Bethesda and North Potomac, especially in newer townhome developments and condominium buildings, inventory has been softer. Homes with more than 14 days on market, price reductions, or extended new construction availability all create room to ask.

The MCPS school boundary changes that took effect in 2026 have shifted demand in some pockets. Buyers writing offers on homes that moved into higher-demand zones face more competition and less negotiating room. Buyers in zones that shifted the other direction have more leverage. Your agent should know which specific addresses and ZIP codes are in play before you structure your offer.

There’s no universal formula. The concession ask is a negotiation decision, not a checkbox — and the right answer is specific to the property, the seller’s motivation, and what’s happening in that micro-market on the day you’re writing.

Frequently Asked Questions

What is the maximum seller concession allowed in Maryland?

There’s no Maryland-specific state cap on seller concessions — the limit is set by your loan program. Conventional loans cap concessions at 3–6% depending on your down payment. FHA allows up to 6%. VA allows up to 4% for non-allowable fees. Jumbo loan limits vary by lender, typically 2–3%. Any concession that exceeds your loan cap will be reduced at closing by your lender.

Can I use a seller concession toward my down payment in Maryland?

No. Seller concessions can only be applied toward closing costs and prepaids — not the down payment. If you need help with the down payment, ask your lender about Maryland Mortgage Program (MMP) options or Montgomery County down payment assistance programs specifically for this price range.

Does asking for a seller concession weaken my offer in Bethesda?

It depends entirely on market conditions. In a competitive multiple-offer situation, yes — a concession request adds friction and can make your offer less competitive. In a softer market or on a home that’s been sitting, it’s standard practice and rarely hurts. Your agent’s read on the specific situation matters more than any general rule.

Can I negotiate a seller concession after the home inspection in Maryland?

Yes. If the inspection surfaces issues, buyers commonly ask for a closing-cost credit instead of repairs. This approach often works better for both parties — sellers avoid managing repair contractors, and buyers receive cash to handle work on their own timeline. The credit shows up at settlement exactly like a pre-negotiated concession.

Do seller concessions affect the appraised value of the home?

The concession itself doesn’t lower the appraised value — appraisers evaluate the gross sale price. However, if your offer price is inflated significantly above market value to accommodate a large concession, and the home appraises lower, your concession may need to be reduced. Structuring concessions around true market value rather than artificial price inflation keeps the deal clean.

If you’re putting together an offer in Bethesda or Montgomery County and trying to figure out whether to include a concession request — and how to structure it without weakening your position — this is exactly the kind of thing I work through with buyers before the offer goes in. The right answer is specific to your loan, the property, and what that market looks like right now.

Reach out anytime. I’m happy to run through the numbers with you.

About Pey Behin
Pey Behin is a residential real estate agent serving the Washington, DC metro area, with a focus on Bethesda, Montgomery County, and Northern Virginia. He works with buyers and sellers who want clear strategy, data-driven pricing, and direct guidance throughout the transaction process. His approach combines market analytics, negotiation expertise, and modern marketing to position clients effectively in competitive conditions.