Seller Concessions: A Key Strategy to Sell Your Home
Over the past few years, the housing market has largely favored sellers. However, as the inventory of available homes increases, market conditions are shifting. This shift is leading to a more balanced market, where some sellers are finding they need to be more flexible to secure a deal. One effective approach? Offering concessions.
As the National Association of Realtors (NAR) puts it:
"With housing inventory on the rise and buyers regaining some leverage, sellers may consider offering more incentives to make their home stand out and successfully close the deal."
What Are Seller Concessions?
Seller concessions are costs that homeowners agree to cover to help facilitate the sale of their property. According to NAR, nearly 1 in 4 home sellers (24%) offered concessions in 2024. Here are some of the most common ones:
The good news? These concessions typically come out of the seller’s net proceeds at closing rather than requiring extra out-of-pocket cash. Plus, not all concessions involve money—sometimes, offering to leave behind appliances or yard equipment can be just as valuable to a buyer.
Why Concessions Benefit Sellers?
Providing concessions can be a powerful tool for sellers looking to close deals. As Dennis Shirshikov, Professor of Finance and Economics at City University of New York/Queens College, explains:
"Pricing homes realistically and being open to concessions—whether covering part of closing costs or including upgrades—will be essential for getting deals done in a slower market."
For example, if a buyer requests repairs after an inspection, rather than relisting your home and starting over, you could offer a concession. You might choose to complete the repairs yourself, lower the price by the estimated repair costs, or even contribute toward the buyer’s closing expenses, allowing them to use those savings for the repairs.
Navigating concessions effectively requires strategy. A skilled real estate agent can help you determine the best approach, ensuring you strike the right balance between making your home attractive to buyers and protecting your bottom line.
Bottom Line
As the market evens out, seller concessions are becoming a more common tool in certain areas to help close deals. Whether it’s covering part of a buyer’s closing costs, offering a home warranty, or adjusting the price to account for necessary repairs, strategic concessions can make your home more appealing and help you secure a sale faster. The key to making these concessions work to your advantage is partnering with an experienced real estate agent who can guide you through the process. With the right approach, you can strike a balance between meeting buyer expectations and protecting your bottom line.
If you were selling your home, what type of concession would you consider to help move the sale forward?