Seller Concessions in the USA
For the past few years, it’s been mostly a seller’s market. Homes were flying off the market, and sellers had the upper hand. But as the number of homes for sale continues to grow, the dynamics are shifting. The market is balancing out, and buyers are gaining some ground. For sellers, this means being more flexible to secure a sale—and one strategy that can help is offering seller concessions.
As the National Association of Realtors (NAR) explains:
As home inventory begins to grow and buyers regain some advantage in the market, sellers may consider offering more in negotiations to make the deal more attractive and get to the closing table.
What Are Seller Concessions?
Seller concessions are homebuying costs that a seller agrees to cover in an effort to help close a deal. The goal is to make the property more attractive to buyers by covering certain costs that might otherwise be a hurdle. According to NAR data, nearly 1 in 4 sellers (24%) offered a concession in 2024.
Here are a few of the most common types of concessions:
- Covering Closing Costs: The seller pays part or all of the buyer’s closing costs, which can include appraisal fees, title insurance, and loan fees.
- Price Adjustments: Instead of handling repairs or updates before the sale, a seller might reduce the purchase price to reflect the work that still needs to be done.
- Adding a Home Warranty: A seller may offer a home warranty to give the buyer peace of mind, knowing that key systems and appliances are covered for the first year.
The best part? These concessions don’t require you to come up with additional cash; they simply get subtracted from your profits at closing. And not all concessions are about money.
Sometimes, simple extras can make a big difference. For example, if the buyer is moving from an apartment and has never had a yard before, they might ask if you’re willing to leave behind your lawn mower. Small gestures like these can go a long way in helping to seal the deal.
How Concessions Help Sellers
Offering concessions isn’t just about helping buyers—it’s a smart strategy to help sellers get their homes sold. As Dennis Shirshikov, Professor of Finance and Economics at City University of New York/Queens College, told The Mortgage Reports:
Pricing homes realistically and being willing to offer concessions, such as covering a portion of closing costs or including upgrades, will be key to closing deals . . . in a less frenzied market.
Let’s say you’ve accepted an offer, but after the buyer’s inspection, they request that you make some repairs. Rather than starting the process over with a new buyer, you could offer a concession.
Instead of handling the repairs, you could offer a price reduction that reflects the cost of those repairs, or you could agree to cover part of the buyer’s closing costs, allowing them to use that savings to tackle the repairs themselves.
In either case, a concession can be an effective way to meet in the middle, avoiding the hassle of re-listing the home. But it’s important to work with a real estate agent who can help you navigate these negotiations to make sure you don’t give away too much and still get the best deal possible.
Conclusion
As the market continues to shift, seller concessions are becoming more common in some areas. The key to making them work is partnering with a skilled real estate agent who can guide you through the process and help you decide when and how to offer them strategically. With the right approach, concessions can help you close the deal without sacrificing too much of your profit. We have the best real estate agents to guide you on this journey. Contact us now!
That’s where we come in. Ready to make your home stand out? Let’s talk about how seller concessions might work for you.
What’s a concession you’d be willing to offer to get your home sold?
