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Kenna Real Estate Group · Colorado buyers

Seller Concessions and Rate Buydowns in Colorado: What to Ask For in 2026

63% of Denver-area sales now include a seller concession. Here is what you can ask for, the loan limits, how a 2-1 buydown works, and the exact words to put in your offer.

A live person answers. Not a robot, not a phone tree.

The short answer

Ask for a credit, not a lower price. A $10,000 credit used as a 2-1 buydown saves $616 a month in year one on a $480,000 loan. The same $10,000 off the price saves $66 a month. Sellers in Colorado are giving credits on 63% of sales, so the ask is normal, and homes past 30 days on market with a price cut are the ones that say yes.

Denver sales with a concession

63%

national average is 46%

Average about $10,000 per sale.

2-1 buydown, year one

$616

a month saved

On a $480,000 loan at a 7% note rate.

Same $10,000 as a price cut

$66

a month saved

Over 30 years. The buydown wins on payment.

Best candidates

30+ days

on market with a cut

Ask in the offer, then again after inspection.

Sales that include a seller concession, 2026Denver metro63%United States46%Average Denver concession: about $9,600 to $11,400 per sale.

What can a seller pay for?

  • Closing costs: lender fees, title, appraisal, recording.
  • Prepaids: the first year of insurance, property tax escrow, prepaid interest.
  • Rate buydown: temporary (2-1 or 1-0) or permanent points.
  • Repairs as credit: a dollar credit instead of the seller hiring the contractor.
  • HOA or metro district transfer fees and, on a condo, prepaid dues.

How much can the seller give? Limits by loan

LoanDown paymentMax seller contribution
ConventionalUnder 10%3% of price
Conventional10% to 25%6% of price
ConventionalOver 25%9% of price
FHA3.5% and up6% of price
VA0%4% of price plus all reasonable closing costs
USDA0%6% of price

The credit cannot exceed your actual closing costs, prepaids and buydown cost. On a $600,000 home with 5% down conventional, the cap is $18,000. Read what closing costs are in Colorado and FHA and VA buying.

How a 2-1 buydown works

The seller deposits the buydown cost with the lender at closing. In year one you pay as if your rate were 2 points lower. In year two, 1 point lower. In year three the full note rate applies. You qualify at the full rate, so the buydown is pure savings, and if rates fall you refinance and the unused deposit comes back to you as a principal reduction.

2-1 buydown on a $480,000 loan at a 7% note rate$2,577Year 1 at 5%$2,878Year 2 at 6%$3,193Year 3 on at 7%Savings: $616 a month in year one, $315 a month in year two. Seller cost: about $11,200, paid at closing.

What to write in the offer

Use plain words the listing agent can read in five seconds: "Seller to credit Buyer $10,000 at closing toward Buyer's closing costs, prepaids and/or rate buydown." Keep the price at or near list if the home is fresh. Ask for a bigger credit instead of a lower price when the home has sat, because the seller's net is the same and your payment is better. After inspection, ask for a credit, not repairs: it closes faster and you pick the contractor.

Builder incentives are the biggest concessions in Colorado

Builders sit on a 15-year inventory peak and are paying $10,000 to $25,000 in closing costs and buying rates down on quick move-in homes, through their own lender in most cases. See which builders are offering what and new construction homes for sale.

Does a concession cost me anything?

Sometimes a slightly higher price, if the seller adds the credit to the price to protect their net. Check that the home still appraises at the higher number. A live person runs both versions of the deal with you in five minutes: 303-955-4220.

Get the buyer concession playbook

One page: the ask by loan type, the 2-1 buydown math on your price, the offer wording, and the inspection credit script. Fill in the form below and we email it today.

Get the guide by email Use the form at the bottom of this page. We send it the same day, and a live person follows up once.

Homes where the ask works

Keep reading

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Questions people ask

What is a seller concession?

Money the seller contributes at closing toward costs that are normally yours: closing costs, prepaid taxes and insurance, repairs, or a mortgage rate buydown. In 2026 about 63% of Denver-area sales include one, averaging about $10,000.

How much can a seller pay toward my closing costs?

Conventional loans allow 3% of the price with under 10% down, 6% with 10% to 25% down. FHA allows 6%. VA allows 4% plus all reasonable closing costs. The concession cannot exceed your actual costs.

What is a 2-1 buydown?

The seller or builder pays a lump sum at closing so your rate is 2 points lower in year one and 1 point lower in year two, then returns to the note rate. On a $480,000 loan at 7% that is $616 a month saved in year one and $315 in year two.

Is a rate buydown better than a price cut?

For the monthly payment, yes. A $10,000 price cut lowers a 7% payment about $66 a month for 30 years. The same $10,000 as a 2-1 buydown saves $616 a month in year one and $315 in year two, and you can refinance if rates fall.

Can I ask for concessions on a new construction home?

Yes, and builders are the most generous sellers in Colorado right now: closing cost credits of $10,000 to $25,000 and rate buydowns on quick move-in homes, tied to the builder's lender.

When should I ask for a concession?

In the offer, and again after inspection. Homes past 30 days on market with a price cut are the best candidates. Ask for a credit instead of repairs; it closes faster.

Get the buyer concession playbook or ask a question

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