How Mark Stillings Helps Buyers Reduce Out‑of‑Pocket Costs: Negotiating Seller Concessions for Closing Costs

How can a buyer reduce out‑of‑pocket closing costs by having the seller cover them — and what exactly are those closing costs for VA, FHA or Conventional loans in the San Antonio area?

 

With the right strategy, buyers can ask the seller to contribute toward their closing costs (via concessions) and significantly reduce the cash needed at closing. This article explains what typical closing costs include for VA, FHA, and Conventional loans in the San Antonio market and how Mark Stillings, a veteran buyer’s agent, helps clients negotiate those costs.

 

What “closing costs” actually cover

Closing costs are the fees and prepaid items buyers pay (or have the seller pay) at the closing of a home purchase. They include things like lender fees, appraisal, title insurance, prepaid taxes/insurance, and program‑specific costs (e.g., funding fees, mortgage insurance). In Texas, buyers should generally expect closing costs in the range of 2% to 6% of purchase price. (texasrealestatesource.com)
Typical closing cost items include:

• Loan origination / lender processing fee
• Appraisal fee
• Credit report fee
• Title insurance and title search fees
• Recording/filing fees
• Prepaid items (homeowner’s insurance, property taxes, interest)
• Program‑specific insurance or fees: for FHA there’s upfront MIP (mortgage insurance premium); for VA there’s the VA funding fee, etc. (rocketmortgage.com)
• Discount points (if buying down the rate)
• Escrow/impound set‑ups

Understanding exactly what makes up the total helps buyers and their agent negotiate for the seller to pick up some or all of those costs.

Why negotiating seller concessions matters

With 18 years as a buyer’s agent in the San Antonio area, Mark Stillings has helped hundreds of buyers lower their cash needed at closing by negotiating seller contributions (or “concessions”) toward closing costs. Buyers still get the same home, but with fewer upfront expenses out of pocket.
Key points to keep in mind:

• Seller concessions are capped: each loan type has limits on what the seller can contribute.
• Concessions must be correctly documented in the offer and on the final closing statement.
• A strong negotiation position is more likely when the buyer has solid financing and makes a clean, well‑structured offer.
• Reducing closing costs frees up funds for other expenses like furniture, upgrades, or reserves.

What closing costs look like on a ~$340K purchase in San Antonio

Here’s a breakdown of what buyers might expect in closing costs — and how much they could ask the seller to cover — based on a $340,000 purchase price in the San Antonio area.

Overall percentage estimate

Texas buyers’ closing costs generally range 2%–6% of the purchase price. (houzeo.com)

• 2% = $6,800
• 6% = $20,400
  So buyers should anticipate $7,000 to $20,000 in closing costs before negotiations.

Loan‑type breakdown

FHA loan

• Closing costs typically range 2–6% of the loan amount.
• For a $340,000 purchase with 3.5% down, loan amount ≈ $328,100.
• 3% closing costs = ~$9,800; 6% = ~$19,700.
• FHA loans include an upfront mortgage insurance premium (UFMIP) of 1.75%, or ~$5,742. This can often be included in seller concessions.

VA loan

• VA loan closing costs usually run 2%–4% of the purchase price.
• On $340,000, that’s ~$6,800 to ~$13,600.
• The VA allows sellers to contribute up to 4% of the purchase price toward buyer closing costs, including the VA funding fee.

Conventional loan

• Conventional loan closing costs usually range from 2%–3%.
• That’s about $6,800 to $10,200 on a $340,000 purchase.
• Seller contributions depend on the down payment but can go up to 3%–6%.

Example scenario

Suppose a buyer is purchasing a $340,000 home with 10% down using a conventional loan:

• Estimated closing costs: ~3% = $10,200.
• If Mark negotiates a 3% seller concession ($10,200), the buyer pays $0 out of pocket for closing costs.

Or if a buyer is using an FHA loan and total costs + UFMIP come to ~$14,000, negotiating a 6% seller concession could reduce that to just ~$4,000 out of pocket.

Mark Stillings’ proven strategy for negotiating seller‑paid closing costs

Here’s how Mark leverages nearly two decades of experience to reduce buyer closing costs:

1. Pre‑approval and clean offers — Ensures buyers are fully underwritten and ready, which boosts negotiation leverage.
2. Detailed cost breakdown — Works with the buyer’s lender to itemize closing costs and identify negotiable items.
3. Contract structuring — Requests a specific dollar amount or percentage as a seller concession, keeping it within allowable limits.
4. Market strategy — Uses real‑time market data (inventory levels, DOM, etc.) to support the concession request.
5. Loan limit expertise — Advises based on specific loan limits: 6% for FHA, 4% for VA, 3%–6% for Conventional.
6. Win‑win terms — If needed, structures the deal with incentives for the seller (e.g., quicker close) in exchange for paying closing costs.
7. Verification at closing — Ensures the negotiated concession appears correctly on the closing disclosure.

 

For a $340,000 home in San Antonio, buyers typically face $7,000–$20,000 in closing costs depending on the loan. With an experienced agent like Mark Stillings, buyers can often shift much of that expense to the seller through strategic concessions — dramatically reducing the out‑of‑pocket burden on closing day.

 

If you're thinking about buying a home and want to reduce your out‑of‑pocket costs, connect with Mark Stillings for a personalized closing‑cost strategy. He’ll help you evaluate your options, structure your offer, and negotiate to keep more money in your pocket.
 Contact Mark at 210.772.3123
 Email: mark@markstillings.com
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— Mark Stillings, Associate Broker, M.B.A
Serving buyers throughout Greater San Antonio