What does a credit represent for the seller at closing?

A credit represents an increase in the amount the seller will receive at closing in a real estate transaction. This typically occurs when the seller has negotiated certain concessions or when there are adjustments made for specific fees or expenses. For example, if the seller agrees to cover some closing costs for the buyer as a form of incentive to close the deal, this would be treated as a credit toward the seller’s proceeds, effectively increasing the net amount they receive after all adjustments have been made.

In transactions, it is common for the seller to have various credits applied, such as to reimburse them for repairs or to cover buyer incentives. Thus, these credits are accounted for at closing and positively affect the seller's overall financial outcome from the sale.

The other choices do not accurately reflect what credit means for the seller at closing. A decrease in the amount to receive would imply a reduction in their financial benefit, while payments made directly to the buyer or fees deducted from the sale do not represent credits but rather other transactional elements.