Seller Concessions: A Smart Move to Get Your Home Sold

In recent years, sellers have had the upper hand in the housing market. But as inventory increases and the market evens out, sellers are finding they need to be more flexible to attract buyers. One effective strategy? Offering seller concessions.

What Are Seller Concessions?

Seller concessions are incentives that homeowners offer buyers to help sweeten the deal. According to recent data, nearly one in four home sellers (24%) provided concessions in 2024. Here are a few common types:

• Covering Closing Costs: Sellers may agree to pay a portion (or all) of the buyer’s closing costs, which can include appraisal fees, title insurance, and loan origination fees.

• Price Adjustments: Rather than making repairs, some sellers reduce the sale price to compensate buyers for necessary updates.

• Including a Home Warranty: Offering a home warranty can provide buyers with peace of mind, knowing they’ll be covered for major repairs in their first year of homeownership.

The good news? These concessions don’t require sellers to come up with extra cash upfront. Instead, they’re deducted from the final proceeds at closing.

Why Seller Concessions Can Work in Your Favor

Providing concessions can be a powerful tool to secure a deal, particularly in a market that is no longer overwhelmingly favoring sellers. As Dennis Shirshikov, Professor of Finance and Economics at City University of New York, explains:

"Pricing homes realistically and being open to concessions, such as covering closing costs or including upgrades, will be essential to closing deals in a more balanced market."

For example, imagine you’ve accepted an offer, but the buyer requests repairs after an inspection. Instead of searching for a new buyer, you could negotiate a concession. You might:

• Complete the repairs yourself to ensure a smooth closing.

• Offer a price reduction to account for the cost of repairs.

• Cover part of the buyer’s closing costs, allowing them to use their savings for renovations.

This flexibility can keep the deal on track while making your home more appealing to buyers.

The Role of an Expert Agent

Navigating seller concessions effectively requires skillful negotiation. A knowledgeable real estate agent can help you determine the best approach, ensuring you offer just enough to close the deal without giving away too much.

Bottom Line

As the housing market shifts, seller concessions are making a comeback. The key is knowing when and how to use them to your advantage. Having an experienced real estate professional on your side can make all the difference.

What’s one concession you’d consider offering to sell your home faster?