Can someone please explain seller concessions?

Seller concessions - a credit from the seller to the buyer, which is to be applied towards closing costs and pre-paids. In most cases, the mortgage lender will cap this credit to 3% - 6% of the final purchase price.

Prior answer is correct. If the market is slow in your area, concessions may be very common. In a hot market they are very rare!

Each area of the country is different!

The top of the San Diego California real estate market was the summer of 2005. Most home values are now off by double digits!

I think we are only half way through this decline. 2010 should be the bottom.

Keep in mind, the average San Diego median home price is over $550,000. So, a 15% decline is a $82,500 loss! If you purchased last year, even with 20% down payment, your San Diego home could now be worth MUCH LESS than the amount of your mortgage!

With my take on the background of the current San Diego real estate market expressed, my opinion on the immediate future is that the San Diego real estate market is likely to accelerate down as the popular adjustable rate mortgages from the last few years come up for their first adjustment.

Yes, San Diego housing values could easily be down 25 to 30% from their summer 2005 values by the end of 2007.

For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:

http://www.brokerforyou.com/brokerforyou

Additional real estate info sites:

http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm

http://www.brokerforyou.com

http://www.san-diego-for-sale-by-owner.com

http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us

http://www.brokerforyou.com/blogger/index.htm

http://www.sandiegorealestatelibrary.info

http://www.sandiego-agent.com

http://san-diego-coastal-real-estate.blogspot.com

http://sandiegofsbo.blogspot.com

http://downtown-san-diego-real-estate-views.blogspot.com

http://san-diego-coastal-real-estate.blogspot.com

http://sandiegofsbo.blogspot.com

http://downtown-san-diego-real-estate-views.blogspot.com

http://www.brokerforyou.com/san-diego-real-estate-sales.html

http://www.poway-real-estate.info

http://www.del-mar-real-estate.info

http://www.la-jolla-real-estate.info

http://www.los-angeles-real-estate-brokers.com

http://www.san-jose-real-estate-brokers.com

http://www.orange-county-real-estate-brokers.com

http://www.san-francisco-real-estate-brokers.com

http://www.sacramento-real-estate-broker.com

http://www.alpinerealestateagent.info

http://www.bonitarealestateagent.info

http://www.carlsbadrealestateagent.info

http://www.chulavistarealestateagent.info

http://www.clairemontrealestateagent.info

http://www.elcajonrealestateagent.info

http://www.encinitasrealestateagent.info

http://www.escondidorealestateagent.info

http://www.fallbrookrealestateagent.info

http://www.jamulrealestateagent.info

http://www.miramesarealestateagent.info

http://www.nationalcityrealestateagent.info

http://www.pacificbeachrealestateagent.info

http://www.pointlomarealestateagent.info

http://www.santeerealestateagent.info

http://www.sorrentovalleyrealestateagent.info

http://www.tierrasantarealestate.info

http://www.universitycityrealestateagent.info

Here is what Wiki told about Seller Concessions
 

It works like this: suppose you agree on the price of the house at, say, $200,000. You then ask the seller for a 3% seller concession. What this means is that you add 3% to the price of the house. That's right, you're now going to pay $206,000 for that house -- but the seller is going to give you that $6,000 back when the sale takes place. You're going to use that money to cover all of your closing costs.