The Power of Concessions: A Win-Win for Buyers and Sellers

The real estate market is always shifting, and lately, we’ve noticed a change. For the past few years, sellers held most of the cards, but now, as more homes come on the market, things are starting to balance out. That means sellers may need to be a little more flexible to get to the finish line—and that’s where concessions can make all the difference.

What Are Seller Concessions?

Seller concessions are a way for homeowners to sweeten the deal and help buyers feel more confident in their purchase. According to the National Association of Realtors (NAR), nearly 1 in 4 sellers offered a concession in 2024. It’s a strategy that can bridge the gap between buyer and seller, making everyone feel like they got a fair deal.

Here are a few common types of concessions:

• Covering Closing Costs – Buyers have a lot of upfront expenses, and covering some (or all) of their closing costs—such as appraisal fees, title insurance, or loan fees—can be a huge relief.
• Price Adjustments – If your home needs some updates but you’d rather not handle the repairs, lowering the purchase price can help buyers feel comfortable tackling those projects themselves.
• Including a Home Warranty – A home warranty can provide buyers peace of mind that they won’t be on their own if a major system or appliance needs repairs in the first year.

And here’s the best part: these concessions don’t mean you need to come up with extra cash. They’re simply adjustments that are settled at closing, allowing for flexibility without putting an additional strain on your finances.

More Than Just Dollars and Cents

Sometimes, it’s the little things that make a big impact. Maybe your buyers are moving from an apartment and have never owned a home with a yard—offering to leave your lawn mower behind could be a simple yet meaningful gesture. Or perhaps they fell in love with a light fixture you were planning to take—letting them keep it might be the extra touch that seals the deal.

How Concessions Help Sellers

At the end of the day, seller concessions aren’t just about giving—they’re about finding common ground to help both sides feel good about the transaction. 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 a portion of closing costs or including upgrades, will be key to closing deals in a less frenzied market.”

For example, let’s say a buyer’s home inspection reveals some needed repairs. Instead of starting from scratch with a new buyer, you might offer a concession—whether that’s handling the repairs yourself, reducing the price, or covering some closing costs so the buyer can manage the updates after closing.

In the end, a well-placed concession can help you move forward with confidence, rather than getting stuck in negotiations.

The Importance of Having the Right Realtor

Navigating concessions is an art, and having an experienced real estate team on your side makes all the difference. We can help you decide when and how to offer concessions that make sense—ensuring you’re not giving away too much but still making your home as appealing as possible. It’s all about striking the right balance, and that’s where we come in.

Bottom Line

As the market shifts, seller concessions are becoming an important tool for getting homes sold. If you’re wondering whether concessions could work for you, let’s talk. We’re here to guide you through the process and help you find solutions that work in your favor.

What’s a concession you’d consider to move things along? Let’s chat about the best strategy for your home!