For the last few years, the market has primarily favored sellers. However, things are starting to change as more homes become available for sale. This shift is helping to balance the market. Consequently, some sellers are realizing they need to be a little more flexible to make a sale. One effective approach? Providing concessions.

The National Association of Realtors (NAR) explains that...

“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 Contributions?

Concessions refer to the costs that a seller agrees to pay in order to help their home sell faster. According to the National Association of Realtors (NAR), about 24% of sellers offered some form of concession in 2024. Here are some of the most common types of concessions:

• Helping with Closing Costs: Sometimes, the seller chips in to cover part—or even all—of the buyer’s closing costs. This could include things like appraisal fees, title insurance, or loan fees, making it easier on the buyer’s wallet.

• Lowering the Price Instead of Making Repairs: If the home needs some updates, the seller might skip the repairs and simply lower the sale price, letting the buyer handle the fixes with a little extra budget.

• Throwing in a Home Warranty: To give the buyer some peace of mind, the seller might include a home warranty, which covers certain repairs and appliances during the first year.

No need to stress about finding extra cash to make this work. These items will be deducted from your profits at closing, so it’s not about bringing more money to the table. Plus, remember that not all concessions revolve around money.

You might consider adding some extras to the deal. For instance, if your buyer is moving from an apartment and has never had a yard, they could ask if you'd be open to leaving your lawn mower behind. That’s another way to keep them satisfied.

How Seller Concessions Can Benefit Sellers

Offering concessions can be a savvy move for sellers looking to close a deal. According to Dennis Shirshikov, a Professor of Finance and Economics at City University of New York/Queens College, this approach can make a significant difference.

““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.”
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— Dennis Shirshikov, Professor of Finance and Economics, City University of New York/Queens College

Imagine you’ve accepted an offer from a buyer, but after the inspection, they’ve asked you to make some repairs before they take possession of the house.

Instead of beginning from scratch to find a new buyer, consider offering a concession. One option is to handle the repairs and cover the costs yourself. If dealing with contractors sounds too much, you could simply lower your asking price by the estimated cost of the repairs. Another approach is to offer to pay part of your buyer's closing costs, allowing them to use those savings for their own repairs.

A concession can really help both parties find common ground. Having an agent on your side is crucial for navigating these negotiations effectively.

A skilled real estate agent can guide you on when and how to offer concessions, helping you strike the right balance between making your house appealing and not giving away too much. It’s about finding that sweet spot.

Bottom Line

With the market stabilizing, we're seeing seller concessions making a return in certain areas. The important part is having an agent who can help you navigate the process to ensure everything works out in your favor. That's where I can assist you.

What kind of concession would you be open to in order to keep things moving?