1) Price- this is likely the first thing the seller will consider. Most people want the highest price possible for their home. If the buyer is asking for closing costs, the seller will subtract this amount from the offer price to figure what the net amount is. For example, let's say two buyers write offers for the same price of $150,000. However, one buyer is asking for the seller to pay $4,000 towards their closing costs, and the other is not asking for any. One offer is a net of $150k while the other is only a net of $146k. Obviously the higher net offer is usually more desirable to a seller.
2) Closing Costs- Another thing to keep in mind about asking for seller paid closing costs is the appraisal. The appraiser is hired by the bank to value the house and substantiate the purchase price for the loan. Appraisers must use past sold comparable homes to justify value. When inventory is low and demand is high, the prices are increasing at a fast pace. The increasing prices make it harder for appraisers to substantiate values. Let's say there are two offers, one for $150k no seller concessions and one for $154k asking for $4000 seller paid closing costs. The net is about the same, but the first offer is better because the house only needs to appraise at $150k instead of $154k. A low appraisal can derail a loan and the transaction.