Are Sellers Paying Buyers' Closing Costs in Frisco, Texas?

Are sellers paying buyers' closing costs in Frisco, Texas? Some are and some are not: a seller credit is a negotiated term that depends on the home, the price, how long it has been listed and the buyer's loan. A well-priced Frisco home in demand may not need one, while a home that has waited is where a credit request is more reasonable.

I'm Omega Mejia, a real estate agent with Simply Great Real Estate Group, and I help Frisco sellers decide ahead of time what they would give, so a credit request never catches them off guard. The short answer also sits in my FAQ.

A seller concession is money the seller agrees to put toward the buyer's costs, written into the contract. It is not a gift and it is not automatic. It shows up on the buyer's Closing Disclosure as a seller credit, so what you agree to is what the paperwork carries.

A credit is a negotiation point like price or the repair list. A buyer may offer a higher price with a credit, or a lower price with none. For you as the seller, the question is which one leaves you more at closing.

A seller can contribute only up to the limit the buyer's loan allows. Fannie Mae's Selling Guide caps contributions from interested parties, including the seller, at 3% to 9% of the lower of the sales price or appraised value on a principal residence, depending on how much the buyer borrows, and at 2% on an investment property. FHA and VA loans set their own limits.

The same guide says contributions cannot exceed the buyer's actual closing costs. An amount above the limit is treated as a sales concession that lowers the price used for the loan. I build the response to any request around the limit that applies to that buyer's loan.

In my experience, a seller concession of about $5,000 is the average I see on Frisco deals. It is not a rule and it is not a county statistic. Some contracts carry no credit, and some carry more, depending on the home, the price and how long it has been listed.

A credit near that size is a number a seller can plan for ahead of time. The lender's limit above still caps what a buyer can receive, so the first question on any request is whether the buyer's loan allows it.

A seller credit does not change the home, the appraisal or the price on its own. If the appraised value comes in below the contract price, the credit does not close that gap. It also does not fix an overpriced listing. A seller who spends their way around a high price often finds the same problem waiting later.

A credit also comes straight out of your net. That is why I put your payoff, other closing items and any repair you are weighing on the same page before you agree to anything.

A Frisco seller should pick whichever option leaves more at closing for the offer in front of them, and that answer changes from offer to offer. A credit of a given size can cost you less than a price cut of a similar size, or more. So I show you what you would keep under each choice, in dollars, not percentages.

We also read what the market is telling us. How long the home has been listed and what showings say matter more than a general headline. If few buyers are looking, the conversation starts with price and condition, not a credit. My pricing process and marketing process explain how I read those signals, and my post on whether home prices are dropping in Collin County covers the bigger picture.

A seller should decide on a credit before the first offer arrives. When a request lands, emotion and time pressure push you toward a quick answer. A plan made ahead of time keeps you steady.

I use Plan A, B and C pricing with every seller, and part of that conversation is what you would accept: a credit, a price change, a repair, or none of the above. Whatever we agree on is written into the contract exactly, so the credit covers what it says and nothing more.

If you are getting ready to sell in Frisco, start with a home valuation, then contact me and we will set your price and your credit limit before the home goes live. If repairs are part of the discussion, read selling a Frisco home as-is.

This is general information about my approach, not legal, tax, financial or insurance advice. The buyer's lender sets the limits on the buyer's loan.