Are Home Sellers Paying Buyer Closing Costs Again in Metro Richmond?

Metro Richmond Homeowner Resource Center | Buyer Guide

By Christine Case, REALTOR® | NextHome Advantage

Can a home seller pay a buyer's closing costs in Virginia?

Yes.

Seller-paid closing costs, often referred to as seller concessions or seller credits, can sometimes be negotiated as part of a home purchase.

Depending on the transaction and your loan program, a seller contribution may help cover certain closing costs, prepaid expenses, discount points or other allowable costs.

And with more homes available for sale across Virginia than a year ago, buyers may encounter situations where sellers are more willing to discuss terms beyond simply the purchase price. Virginia had 28,357 active listings at the end of July 2026, up 13.4% from the year before.

But there's an important word in all of this:

Negotiate.

A seller doesn't automatically have to pay your closing costs, and asking for them isn't necessarily the right strategy on every house.

Here's what buyers should understand.

Buying a house involves more than your down payment.

Depending on your loan and transaction, closing-related expenses may include things such as:

• Lender fees
• Appraisal costs
• Title and settlement charges
• Recording fees
• Prepaid property taxes
• Homeowners insurance
• Discount points
• Other loan- or transaction-related costs

Your lender should provide a Loan Estimate showing the expected costs associated with your financing.

And yes...

That number can surprise first-time buyers.

You've saved for the down payment, you've found the house, and then you discover there's another pile of expenses waiting at the closing table.

That's why seller concessions can be worth understanding.

A seller concession generally means the seller agrees to contribute money toward certain buyer expenses as part of the negotiated purchase contract.

Virginia REALTORS®' current Residential Purchase Contract specifically includes a section addressing seller concessions, reinforcing that concessions are one of the financial terms buyers and sellers can negotiate in a Virginia home purchase.

For example:

Imagine you're purchasing a home and instead of negotiating only over the sales price, your offer asks the seller to contribute a certain amount toward allowable closing costs.

If the seller agrees, and the contribution complies with your loan requirements, that money can reduce the amount of cash you need for eligible expenses at closing.

And that can be a BIG deal for some buyers.

Here's where I think buyers sometimes focus on the wrong number.

They immediately ask:

“How much can I get them to come down on the price?”

Fair question.

But sometimes I want to ask something different:

“What are we actually trying to accomplish?”

If your biggest concern is cash out of pocket at closing, a seller credit may potentially help you more immediately than a modest reduction in purchase price.

If your biggest concern is the monthly payment, we may want to look at an entirely different combination of price, financing and possible seller assistance.

That's why I don't believe in negotiating just for the sake of saying:

“We got $10,000 off!”

I care about what actually improves the transaction for you.

Because sellers have goals too.

Maybe they want to:

Get the house under contract.

Close by a particular date.

Move on to their next home.

Protect the overall sales price.

Or perhaps the home has been sitting on the market and the seller is becoming more motivated.

This is where market conditions matter.

Virginia inventory has grown compared with last year. More inventory doesn't automatically mean every seller will negotiate, but it can mean buyers have more alternatives than they did when inventory was extremely tight.

A house that received six offers its first weekend may give us very little negotiating leverage.

A house that's been sitting for several weeks with no offers?

That's a different conversation.

Sometimes, yes.

Depending on your mortgage program and lender requirements, seller contributions may be used toward discount points or an allowable interest-rate buydown.

For example, the U.S. Department of Veterans Affairs specifically identifies loan discount points and funds for temporary buydowns among closing costs that buyers and sellers can negotiate.

This is one reason I want buyers working with their lender before we structure the offer.

I can help negotiate the real-estate terms.

Your lender tells us exactly what your particular loan allows and what would produce the greatest financial benefit.

Then we can build the offer accordingly.

It depends on your financing.

Please don't let someone tell you:

“Sellers can always pay X%.”

It's more complicated than that.

Contribution limits can vary based on the loan program, occupancy, down payment/equity and the type of expense being paid.

For example, Fannie Mae's current rules for certain conventional loans allow maximum financing concessions ranging from 3% to 9% for principal residences and second homes, depending on loan-to-value. Investment properties have different limits. Fannie Mae also makes clear that these contributions can't simply be used for the buyer's down payment or required reserves.

VA loans have their own rules. The VA states that sellers or builders may offer credits toward some or all buyer closing costs, while certain defined seller concessions are subject to a 4% limit.

Other loan programs have their own requirements.

Translation into normal human language:

Ask your lender before we write the offer.

We'll determine what's allowed for your financing rather than relying on a rule somebody remembered from the last house they bought.

Now we're getting to the really interesting question.

Let's say you're considering two possible negotiations:

Option A: Ask the seller to reduce the purchase price.

Option B: Keep the price higher but ask the seller to contribute toward allowable closing costs.

Which is better?

There isn't one answer.

A price reduction reduces the amount you're borrowing, but depending on the size of the reduction, the effect on your monthly payment may be relatively modest.

A seller credit, on the other hand, may reduce the amount of cash you need at closing or potentially help with financing costs.

That's why we should run the actual numbers.

Don't negotiate based on what sounds like the bigger win.

Negotiate based on what actually helps you.

You can potentially ask.

Whether you should is another matter.

This is where having someone interpret the market becomes important.

Imagine two homes:

HOUSE A

Listed yesterday.

Beautifully updated.

Priced correctly.

Busy open house.

Multiple interested buyers.

Asking the seller for a large closing-cost contribution could make your offer less competitive.

HOUSE B

On the market 38 days.

Several price reductions.

Vacant.

No current offers.

Seller has already moved.

Suddenly...

we may have something to talk about.

Same buyer.

Same financing.

Completely different negotiating environment.

One of the biggest lessons I want buyers to learn is that a real-estate offer isn't simply:

“How much?”

An offer can involve several terms, depending on the property and circumstances.

Those might include:

• Purchase price
• Seller concessions
• Closing date
• Inspection terms
• Financing
• Appraisal provisions
• Personal property
• Other negotiated terms

Virginia REALTORS® actually updated its Residential Purchase Contract in 2026, including clearly organized sections for financing terms and seller concessions.

The strongest offer isn't always the offer with the highest number.

And the best deal for a buyer isn't always the deal with the lowest price.

Are sellers paying buyer closing costs in Virginia in 2026?

Some are. Seller concessions are negotiable and depend heavily on the individual property, competing offers, seller motivation, financing and local market conditions. Growing statewide inventory may create additional negotiating opportunities in some situations, but conditions vary significantly by neighborhood and price range.

Can a seller pay all of my closing costs?

Possibly, but the amount and eligible expenses depend on your loan program, transaction and applicable financing rules. Your lender should calculate exactly what is permitted.

Can seller concessions pay my down payment?

Not necessarily, and with many common loan programs, no. For example, Fannie Mae states interested-party contributions cannot be used to make the borrower's required down payment or satisfy required reserves or minimum borrower contributions.

Can the seller help buy down my mortgage rate?

Potentially. Certain loan programs permit seller funds to be applied toward allowable discount points or rate-buydown costs. Your lender should determine what is permitted and whether it makes financial sense for you.

Should I ask for seller-paid closing costs when making an offer?

It depends on the property. Days on market, competing offers, price history, comparable sales and seller motivation can all influence whether asking for concessions makes strategic sense.

Yes, Metro Richmond homebuyers may be able to negotiate seller-paid closing costs in 2026.

But I don't want you automatically asking for them on every house.

And I don't want you automatically assuming the seller won't consider them either.

Look at the house.

Look at the competition.

Look at the seller's position.

Look at your financing.

Then build an offer around your goals and the situation in front of us.

That's the difference between simply writing an offer...

…and having a strategy.

Good real estate decisions start with good information, not pressure.

If you're considering buying a home in Metro Richmond, Chesterfield, Midlothian, Richmond, Henrico, Glen Allen or surrounding Central Virginia, I'm always happy to help you understand your options.

• Christine Case, REALTOR®
• NextHome Advantage
• Helping You Make Confident Real Estate Decisions.

Christine Case | NextHome Advantage

This article is for general educational purposes. Loan programs, contribution limits and contract terms vary. Buyers should consult their mortgage lender regarding financing requirements applicable to their individual situation.

These are the live authoritative links I'd embed in the article rather than sending readers to generic secondary sites:

Virginia REALTORS®, 2026 Residential Purchase Contract Resources

Virginia REALTORS®, July 2026 Virginia Housing Market Takeaways

Fannie Mae, Interested Party Contribution Rules

U.S. Department of Veterans Affairs, VA Closing Costs & Seller Contributions

Thinking about selling and want a straight answer on your own house? I'm Christine Case, a REALTOR® with NextHome Advantage, and I would rather help you understand your options than rush you into anything. Start with what living in Midlothian is really like, browse more straight answers on the blog, or send me your question and I'll answer it myself.