How this number is made
A seller concession is a credit against the buyer’s costs, not a cut in the price, though it feels like one. Loan programs cap the credit. This page applies the percent you type and does not know the cap.
- The percent is of the price, which is how many contracts write it.
- If the credit is a flat dollar amount, divide it by the price yourself or type the matching percent.
Formula
Credit = price × percent. Price net of the credit = price − credit.
Worked example
With the figures already in the form, seller credit is $8,500.
Questions
Does the lender allow this percent?
Depends on the program and the down payment. This page will not stop you from typing a credit that a loan would reject.
Is the commission calculated on the net?
Usually on the contract price, before the credit. This page does not compute commission.