Over the past few years, sellers have enjoyed a strong market. However, with more homes now available, market conditions are leveling out. This shift means sellers may need to be more strategic to attract buyers and close deals. One effective approach? 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 incentives that help buyers with homebuying costs, making a property more appealing. According to the National Association of Realtors (NAR), nearly 1 in 4 sellers (24%) offered a concession in 2024. Common types of concessions include:

• Covering Closing Costs: Sellers may pay part or all of a buyer’s closing costs, such as appraisal fees, title insurance, or loan fees.

• Price Adjustments: Instead of handling repairs, a seller might lower the purchase price to compensate for necessary updates.

• Adding a Home Warranty: Offering a home warranty can provide buyers with peace of mind by covering key repairs in the first year.

The best part? These concessions don’t require sellers to come up with extra cash. Instead, they are deducted from the final sale proceeds at closing.

Not all concessions are financial. Sellers can also offer personal touches, such as leaving behind a lawn mower for first-time homeowners transitioning from an apartment. Small gestures like these can make a big difference in sealing the deal.

How Concessions Benefit Sellers

In a market that’s becoming less competitive for sellers, offering concessions can be a powerful way to encourage buyers to move forward with a purchase. As Dennis Shirshikov, Professor of Finance and Economics at City University of New York/Queens College, explains:

“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.”

For example, if a buyer requests repairs after an inspection, sellers have options. Instead of delaying the sale or searching for a new buyer, a seller could:

• Cover the repair costs directly.

• Reduce the home’s price to reflect the cost of repairs.

• Offer to pay part of the buyer’s closing costs, allowing them to use the savings for repairs.

These strategies help keep transactions moving forward while maintaining a fair deal for both parties.

The Importance of Expert Guidance

Navigating seller concessions effectively requires a solid strategy, and that’s where an experienced real estate agent comes in. A knowledgeable agent can help sellers determine when and how to offer concessions, ensuring they remain competitive without giving away too much.

Bottom Line

As the market balances out, seller concessions are becoming a valuable tool for closing deals. By working with an experienced agent, sellers can use concessions strategically to attract buyers and finalize sales.

If you’re considering selling your home and want to explore how concessions can benefit your sale, reach out to Mike Panza and the team at Panza Home Group for expert guidance.