Seller concessions Georgia buyers negotiate are credits the seller pays toward your closing costs, prepaids or a rate buydown, written into the purchase contract as a dollar amount. Your loan sets the limit. FHA allows up to 6% of the sales price, VA caps certain concessions at 4% of reasonable value, and conventional loans allow 3% to 9% based on down payment.
Atlanta buyers are in a good position to ask right now. In Redfin's August 2026 concessions report, sellers gave buyers concessions in 72.8% of Atlanta home sales. That was the highest share among the 29 metros Redfin tracks and 3.7 percentage points higher than a year earlier. Nationally, 44.7% of sales included a concession, up from 42.6% a year before and the highest share for any August since at least 2020.
A seller being willing to pay does not mean your lender will let you take all of it. The limit comes from your loan program, and it can shrink after you sign if the appraisal comes in low. Below we cover how the limits work, which Georgia costs a credit can pay, and how to check that the credit shows up correctly at closing.
What Redfin's Atlanta number measures
Redfin's figures come from reports by its own buyers' agents in 29 U.S. metros, calculated over rolling three-month periods. The "August" number covers the three months ending Aug. 31, 2026. Redfin counts money toward repairs, closing costs and rate buydowns as concessions. It does not count price reductions. Separately, Redfin found that 15.8% of homes had both a price drop and a concession in August.
After Atlanta, the next four metros were Charlotte (67.9%), Phoenix (67.4%), Las Vegas (66.7%) and Raleigh (66.3%). Metro Atlanta CEO's republication of the Redfin release lists the kinds of concessions buyers are getting: closing costs, repairs, mortgage-rate buydowns, appliances and changes to floor plans.
Keep in mind what this data represents. It is a share of sales handled by one brokerage's agents, not a count of every Atlanta closing, and it tells you how often concessions happen, not how large they are. It supports asking. It does not tell you what a particular seller in Gwinnett, Cobb or Decatur will agree to.
What a seller credit does for you
A seller credit lowers the cash you need at closing. A price cut lowers the price, and with it your loan and down payment. For a buyer who can afford the monthly payment but is short on cash, the credit usually helps more at the closing table.
Here is a simple comparison on a hypothetical $400,000 purchase with 5% down:
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$10,000 price cut: the price drops to $390,000. Your down payment falls by $500 and your loan by $9,500. You still pay all of your closing costs.
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$10,000 seller credit: the price stays at $400,000, but your cash to close can fall by up to $10,000 if you have at least that much in eligible closing costs and prepaids.
The trade-off is that a price cut lowers your balance and payment for the life of the loan, while a credit only helps once. Some buyers ask for both. Decide which matters more to you before you make an offer.
There is one hard limit on what the money can pay for. Under Fannie Mae's Selling Guide, seller contributions on conventional loans cannot be used for the down payment, reserves or the borrower's minimum contribution. The credit goes toward closing costs, not the money you put down.
Your loan program sets the ceiling
FHA loans: 6% of the sales price
FHA News and Views, quoting HUD Handbook 4000.1, says "Interested Parties may contribute up to 6 percent of the sales price toward the Borrowers origination fees, other closing costs and discount points." Contributions above 6% "are considered an inducement to purchase." The 6% can also go toward rate buydowns and the upfront mortgage insurance premium. Real estate commissions that the seller normally pays by law or local custom do not count against the 6%.
VA loans: 4% of reasonable value, for concessions only
VA.gov says: "We don't limit credits for a loan's closing costs, but we do limit seller's concessions to no more than 4% of your home's reasonable value." VA says concessions "include credits for the VA Funding Fee, debt payoff, or prepayment of the buyer's hazard insurance." The 4% is based on the home's reasonable value from the VA appraisal, not the contract price. For a VA buyer, a seller credit for ordinary closing costs is not subject to the 4% cap. That cap applies to items such as paying the funding fee or paying off the buyer's debts.
Conventional loans: 3%, 6% or 9%, based on loan-to-value
Fannie Mae's Selling Guide (B3-4.1-02) sets these maximum financing concessions for a principal residence or second home:
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More than 90% loan-to-value (less than 10% down): 3%
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75.01% to 90% loan-to-value: 6%
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75% loan-to-value or lower: 9%
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Investment property, at any loan-to-value: 2%
Fannie Mae counts the seller, the builder or developer, the real estate agent or broker, and their affiliates as interested parties. A builder-paid rate buydown on a new home counts toward the same cap. Fees that sellers customarily pay by local custom, and lender credits from premium pricing, do not count.
The $400,000 Atlanta example
Here is how the caps work on a hypothetical $400,000 Atlanta purchase, assuming the home appraises at the price:
| Loan | Cap | Maximum credit | | --- | --- | --- | | FHA | 6% of sales price | $24,000 | | Conventional, 5% down (95% LTV) | 3% | $12,000 | | Conventional, 20% down (80% LTV) | 6% | $24,000 | | VA | 4% of reasonable value for concessions | $16,000 in concessions; ordinary closing-cost credits not counted toward it |
In every case, the credit cannot be more than your actual costs. A $24,000 cap does not help much if your closing costs and prepaids come to $11,000.
Two traps that can shrink your credit
1. Asking for more than your closing costs. Fannie Mae says financing concessions "must be equal to or less than the sum of the borrower's closing costs. Any amount exceeding the borrower's closing costs must be treated as a sales concession." Concessions above the limits "must be deducted from the property's sales price." Put simply, a credit that is too large on a conventional loan does not turn into extra cash for you, and it can reduce the price your lender uses in its calculations. Size the request to the costs on your Loan Estimate.
2. A low appraisal. Fannie Mae calculates the cap using "the lower of the sales price or appraised value (not the loan amount)." Suppose you have 5% down on a $400,000 contract and the home appraises at $390,000. Your 3% cap drops from $12,000 to $11,700. A low appraisal can also push your loan-to-value into a lower tier. On VA loans the 4% concession cap is already based on the appraised reasonable value. If your request is right at the limit, leave some room.
How to write the credit into a Georgia contract
The Georgia purchase agreement has a blank for a seller's contribution at closing. How you fill it in matters.
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Get a Loan Estimate first. Before you make an offer, ask your lender for an estimate of your closing costs, prepaids and escrow deposits at your likely price. That total is the most a credit can usefully cover.
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Ask for a dollar amount. Write "$9,000" rather than a vague phrase like "closing costs." A specific number is easier to negotiate, easier for the lender to approve, and easier to check at closing.
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Check it against your program's cap. Run the number through the FHA, VA or conventional limit above, using a conservative appraisal assumption.
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Confirm with your agent and lender before you sign. Ask both whether your loan program allows the full amount as written, and how the contract language treats a credit your loan cannot fully use.
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Decide on a buydown up front. If you want part of the credit to buy down your rate, tell your lender early so the points appear on your Loan Estimate and count toward the same cap.
Georgia closing costs a seller credit can go toward
Two Georgia taxes come up at almost every purchase closing, and they usually fall on different sides of the deal.
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Intangible recording tax (usually the buyer). The Georgia Department of Revenue sets it at "$1.50 for each $500.00 or fractional part of the face amount of the note" on long-term notes secured by real estate, with a cap of $25,000 per note. On a $380,000 loan that is $1,140. According to Georgia Title & Escrow Company, the borrower commonly pays this tax as a closing charge, so a seller credit can go toward it.
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Transfer tax (usually the seller). The Georgia Department of Revenue sets it at $1 for the first $1,000 plus 10 cents for each additional $100. That works out to $400 on a $400,000 sale. The DOR says "the seller is liable for the real estate transfer tax, though frequently the parties agree in the sales contract that the buyer will pay the tax." Georgia Title & Escrow says the standard GAR purchase agreement assigns it to the seller. It is declared on Form PT-61 through GSCCCA before the deed is recorded. Read your contract to make sure this cost has not been moved to you.
Other buyer-side costs a credit commonly goes toward include title charges, attorney fees, lender fees, prepaid interest and insurance, and the initial deposit into your escrow account for property taxes and insurance. On FHA loans, discount points and the upfront mortgage insurance premium are also eligible.
Who handles the money at a Georgia closing
Georgia requires a licensed attorney at closing. According to R.S. Johnson Legal, the Georgia Supreme Court ruled unanimously in 2003 (In re UPL Advisory Opinion 2003-2) that only a licensed Georgia attorney may prepare or facilitate the execution of a deed, and that a lawyer cannot hand this off to a non-lawyer. Per Georgia Title & Escrow, the closing attorney calculates the transfer and intangibles taxes on the settlement statement and pays them to the clerk of superior court at recording.
When you have a mortgage, the closing attorney is typically chosen by the lender and represents the lender. That attorney will apply the credit as the contract and loan documents describe it, but they do not represent you. If you have questions about how your credit is being applied, raise them with your agent and lender early. If you want your own legal advice, hire your own attorney.
What to check on your Closing Disclosure
The CFPB says "Lenders are required to provide your Closing Disclosure three business days before your scheduled closing." Use those days to check the credit.
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A general credit appears as a lump sum labeled Seller Credit in the Summaries of Transactions section. The CFPB's advice: "Check that your Seller Credit reflects what you agreed upon with the seller."
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A credit tied to a specific cost appears in the Seller-Paid column of the Closing Cost Details on page 2. This follows Regulation Z Comment 38(j)(2)(v)-1.
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Either way, add up the seller-paid amounts and the lump-sum credit and compare the total with the dollar figure in your contract. The attorney's settlement statement should show the same amount. If the numbers differ, ask before closing day.
Checklist before you make an offer
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Get a Loan Estimate at your likely price and down payment.
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Total your closing costs, prepaids and escrow deposits. That total is the most you should ask for.
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Find your program's cap: FHA 6% of price, VA 4% of reasonable value for concessions, conventional 3%, 6% or 9% by loan-to-value (2% for investment property).
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Leave room for an appraisal below the contract price.
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Ask for a specific dollar amount in the seller-contribution blank, and confirm with your lender that it fits.
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Check that the transfer tax stays with the seller unless you agreed otherwise.
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Compare your Closing Disclosure and the attorney's settlement statement with the contract amount.
