Utah FSBO Seller Concessions: What to Offer and What to Avoid

When you're selling your Utah home without a realtor, one of the most common negotiating tools buyers will ask you to use is seller concessions. Understanding what utah fsbo seller concessions you should offer—and where to draw the line—can be the difference between a clean closing and leaving thousands of dollars on the table.

Photo by Vitaly Gariev on Unsplash

What Are Seller Concessions?

Seller concessions are costs you agree to cover on behalf of the buyer at closing. These typically appear as a credit on the settlement statement and reduce how much cash the buyer has to bring to the table. In Utah real estate transactions, concessions are usually negotiated as part of the initial offer or counter-offer in the REPC (Real Estate Purchase Contract).

Common concessions include:

• Closing cost credits — covering some or all of the buyer's loan origination fees, title fees, or prepaid expenses
• Repair credits — offering a dollar amount instead of making repairs yourself
• Rate buydown contributions — contributing toward the buyer's mortgage interest rate
• Home warranty payments — paying for a one-year home warranty policy at closing

How Much Are Sellers in Utah Typically Conceding?

In recent years, Utah's market has shifted. During the 2021–2022 seller's market, concessions were rare—buyers waived everything to win. Since then, higher interest rates have made buyers more cost-sensitive, particularly in the Salt Lake Valley, Utah County, and St. George areas. Today, it's not unusual for buyers to ask for 1–3% of the purchase price in concessions.

On a $450,000 home, that's $4,500–$13,500. As a FSBO seller, you're already saving on the listing agent commission—but concessions can erode that savings quickly if you're not strategic.

When Concessions Make Sense for Utah FSBO Sellers

Concessions can be worth offering in specific situations:

When your home has been on market 30+ days. Days on market in Utah are tracked on the MLS. If your listing has been sitting, buyers will notice and assume something is wrong. Offering a closing cost credit can restart momentum without cutting your price.

When you won't do repairs. Instead of haggling about the inspection report item by item, offering a flat repair credit—sometimes called an "as-is" credit—gives buyers certainty and keeps the deal moving. See our guide on handling inspection repair priorities for how to decide which items are worth fixing vs. crediting.

When the buyer is financing and cash-tight. Many buyers in Utah are using FHA or VA loans and are short on closing cash. A seller-paid credit applied toward their closing costs can be the difference between a funded deal and a collapsed transaction.

What to Avoid with Seller Concessions

Don't overdo it to get a higher offer price. Some buyers and agents try to inflate the sale price so they can ask for bigger concessions, keeping their net cost the same. This can cause serious appraisal problems. If your home appraises below the inflated purchase price and the buyer wants out, you're back to square one. In Utah, appraisals in rapidly appreciating markets like Lehi, Saratoga Springs, and Herriman already run tight—don't add risk.

Don't agree to concessions that exceed loan program limits. FHA loans cap seller concessions at 6% of the purchase price. Conventional loans cap concessions at 3% for down payments under 10%, and 6% for down payments of 10–25%. If the concession you agreed to exceeds these limits, the deal can fall apart during underwriting. Always confirm the buyer's loan type before agreeing to a concession amount.

Don't confuse concessions with price reductions. A price reduction shows up as a lower comparable sale in your neighborhood. A seller concession doesn't affect the recorded sale price. For FSBO sellers who may sell again or care about neighborhood values, this distinction matters.

Negotiating Concessions in the Utah REPC

Under the Utah REPC, seller concessions are typically written into the Additional Terms section or the closing cost addendum. The language should specify:

• The exact dollar amount (not a percentage, which can create disputes)
• What the credit is for (closing costs, repairs, rate buydown, etc.)
• That the credit is contingent on the sale price being appraised at or above the purchase price

If you're unsure how to structure the concession language correctly, this is worth a quick review with a Utah real estate attorney before you sign.

Bottom Line: Concessions Are a Tool, Not a Giveaway

Utah FSBO seller concessions are a legitimate negotiating tool—but they work best when you've thought through the tradeoffs. Know your walkaway number before you start negotiating. If the buyer is asking for more in concessions than you're willing to give, that's a counter-offer situation, not a deal-breaker.

As a FSBO seller, you're already saving $10,000–$15,000 or more by not paying a listing agent. Giving back $3,000–$5,000 in concessions to close a deal that works for both parties is often the smart move.

Ready to get started? Tyler offers a free 15-minute consultation — schedule yours at utahfsbohelp.com/contact.