Seller Concessions 101: What They Are & Why They Matter

For the past few years, the real estate market has heavily favored sellers, with homes flying off the market at record speeds. But as inventory increases, we’re seeing a more balanced market emerge—meaning sellers may need to be more flexible to close deals.

One strategy that can make a difference? Offering seller concessions.

What Are Seller Concessions?

Seller concessions are incentives a homeowner offers to make their listing more appealing to buyers. In fact, according to the National Association of Realtors (NAR), nearly 1 in 4 home sellers (24%) offered a concession in 2024.

Some of the most common concessions include:

✅ Covering Closing Costs – Sellers can pay a portion (or all) of a buyer’s closing costs, such as loan fees, title insurance, or appraisal expenses.
✅ Price Adjustments – Instead of making repairs after an inspection, a seller may lower the home price to account for necessary updates.
✅ Adding a Home Warranty – Offering a one-year home warranty gives buyers peace of mind that major repairs will be covered.

The good news? These concessions don’t require sellers to come up with extra cash—they’re typically deducted from the proceeds at closing.

Beyond Money: Creative Concessions That Make an Impact

Not all seller concessions are strictly financial. Sometimes, a simple personal touch can help seal the deal.

For example, if your buyer is moving from an apartment and has never owned a home with a yard, offering to leave behind your lawn mower could be a valuable perk. Small gestures like this can help buyers feel more comfortable moving forward with the purchase.

How Concessions Help Sellers Close Deals

In a more balanced market, sellers who are willing to negotiate often have a competitive edge. As Dennis Shirshikov, Professor of Finance and Economics at CUNY 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."

Here’s a real-world example:

🔹 A seller receives an offer, but after the inspection, the buyer requests repairs. Instead of losing the deal, the seller can:
💡 Option 1: Complete the repairs before closing.
💡 Option 2: Reduce the home price to offset the cost of repairs.
💡 Option 3: Offer to cover part of the buyer’s closing costs, allowing them to use those savings for repairs.

A well-structured concession keeps the sale on track while ensuring both parties walk away satisfied.

The Key? Smart Negotiation with a Pro

While concessions can help secure a sale, they also require careful negotiation. Offering too much can cut into your profits, while offering too little might not sway buyers in your favor.

That’s where having the right real estate agent makes all the difference. A skilled agent can:
✔ Help you determine when and how to offer concessions.
✔ Ensure you stay competitive without giving away too much.
✔ Strategically position your home to attract serious buyers.

As the market shifts, seller concessions are making a comeback—but strategy matters. Working with an experienced agent can help you find the right balance, close deals faster, and protect your bottom line.

👉 Thinking about selling? Let’s chat about how to position your home for success!