For the past few years, sellers have had the upper hand in the market. But as housing inventory increases, market conditions are shifting. With more options available to buyers, sellers are finding they need to be more flexible to close a deal. One effective strategy? Offering 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 costs that a homeowner agrees to cover to help attract buyers and finalize a sale. According to NAR, nearly 1 in 4 sellers (24%) offered a concession in 2024. Here are some of the most common types:
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Covering Closing Costs – Sellers may pay for part (or all) of the buyer’s closing costs, such as appraisal fees, title insurance, or loan fees.
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Price Adjustments – Instead of making repairs, a seller might lower the purchase price to offset necessary updates.
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Including a Home Warranty – Offering a home warranty can give buyers peace of mind that key repairs will be covered in their first year.
The best part? You don’t have to come up with extra cash upfront—concessions are typically deducted from your proceeds at closing. And not all concessions are financial—sometimes, it’s about offering extra perks.
For example, if your buyer is moving from an apartment and has never owned a yard before, they might ask if you’d leave behind your lawn mower. Small gestures like this can help seal the deal.
How Concessions Benefit Sellers
Offering concessions can be a powerful tool in negotiations. 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.”
Consider this scenario:
You’ve accepted an offer, but after the inspection, the buyer requests repairs before finalizing the sale. Instead of searching for a new buyer, you have options:
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Make the Repairs – You handle the necessary fixes yourself.
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Offer a Price Reduction – Lower the sale price to compensate for the needed repairs.
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Cover Buyer Closing Costs – Offer to pay part of their closing costs so they can use the savings for repairs.
Each option helps keep the deal moving forward while ensuring both parties walk away satisfied.
The Importance of a Skilled Agent
Navigating concessions requires strategy. A knowledgeable real estate agent can help you determine when and how to offer concessions—so you don’t give away too much while still securing a successful sale.
As the market becomes more balanced, seller concessions are making a comeback. Having the right agent by your side ensures you use them strategically to benefit your sale. That’s where I come in.
What’s one concession you’d be willing to offer to move things along? Let’s discuss!
