Seller Concessions: A Smart Strategy To Get Your House Sold

Seller Concessions: A Smart Strategy To Get Your House Sold

Over the past few years, the market has favored sellers. But with more homes now available, things are starting to balance out. This shift means some sellers need to be more flexible to secure 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 the seller agrees to cover to help close a deal. According to the National Association of Realtors (NAR), nearly 24% of sellers offered concessions in 2024. Common types include:

• Covering Closing Costs: Sellers may pay for some or all of the buyer’s closing costs, such as appraisal fees, title insurance, or loan fees.
• Price Adjustments: Instead of making repairs, a seller might lower the home’s price to offset the cost of updates the buyer will handle.
• Adding a Home Warranty: Some sellers include a home warranty to cover key repairs for the buyer’s first year of ownership.

These concessions come from the seller’s profits at closing, so they don’t require additional upfront cash.

Not all concessions are financial. Sellers can also offer extras, like leaving behind a lawn mower for a buyer moving from an apartment.

How Concessions Help Sellers

Offering concessions can be a strategic move to secure a sale. 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.”

For instance, if you accept an offer but the inspection reveals necessary repairs, the buyer may ask you to address them before closing.

Instead of searching for a new buyer, you could offer a concession. You might cover the repair costs yourself or lower the home’s price by the estimated repair amount. Another option is to pay part of the buyer’s closing costs, allowing them to use the savings for repairs.

Concessions help find a middle ground, but it’s crucial to have a real estate agent guide you. The right agent ensures you offer just enough to secure the sale without giving up too much.

Bottom Line

As the market evens out, seller concessions are becoming more common. Having an expert to navigate these negotiations can help you get the best outcome.

What concession would you consider to close the deal?