For the past few years, the real estate market has largely favored sellers. But now, things are starting to shift as more homes become available, creating a more balanced market. With this change, some sellers may need to be more flexible to finalize a deal. One effective strategy to consider? Offering concessions.

According to the National Association of Realtors (NAR):

“As home inventory increases and buyers gain more leverage in the market, sellers may want to offer more during negotiations to make their property more appealing and close the deal.”

What Are Seller Concessions?

Seller concessions are costs that the seller agrees to cover to help facilitate the sale. In 2024, nearly 1 in 4 sellers (24%) offered some form of concession. Here are a few common types:

• Covering Closing Costs: The seller can pay some or all of the buyer’s closing costs, such as appraisal fees, title insurance, or loan fees.

• Price Adjustments: Instead of making repairs, the seller might reduce the purchase price to account for updates the buyer will need to make.

• Adding a Home Warranty: The seller may include a home warranty to give the buyer peace of mind that major repairs will be covered during the first year.

The best part? Offering concessions doesn’t mean you need to come up with extra cash. These costs will be subtracted from your profits at closing, not added as additional expenses. Not all concessions are money-related, either. For instance, if your buyer is transitioning from an apartment and hasn’t had a yard before, offering to leave your lawn mower could be a small but thoughtful gesture that helps seal the deal.

Why Seller Concessions Work

Offering concessions can be a smart way for sellers to close a deal, especially in a more balanced market. As Dennis Shirshikov, Professor of Finance and Economics at City University of New York, explains:

“Pricing homes realistically and being willing to offer concessions, such as covering part of the closing costs or including upgrades, will be key to closing deals in a less frenzied market.”

For example, let’s say a buyer accepts your offer, but after the inspection, they ask for some repairs before closing. Instead of relisting your home and starting the process over, you could offer a concession. You could either pay for the repairs yourself, lower the price to cover the repair costs, or contribute to the buyer’s closing expenses to help them fund the repairs.

Concessions provide a way to meet the buyer halfway without restarting the whole selling process.

How an Agent Can Help

Having a skilled real estate agent by your side is crucial in making concessions work for you. They can guide you on when and how to offer concessions, ensuring you don’t give away too much while still getting your home sold.

Bottom Line

As the market becomes more balanced, seller concessions are becoming more common again. Having an experienced agent to help you navigate the process is key to making sure the deal works out in your favor. That’s where I come in.

What kind of concession would you consider offering to move your sale along?