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If You’re Selling Your Home Soon, Don’t Let the Word ‘Concession’ Scare You
Dolly Kaiser
In recent years, it hasn’t been unusual to list a home and have it go under contract in a matter of days—often with multiple offers, sometimes above asking price, and occasionally with eager backup buyers waiting in the wings. During that time, many sellers didn’t even need to entertain a buyer’s request for a concession. In fact, buyers were often the ones waiving contingencies just to compete.
So if you’re planning to sell soon, it’s only natural to expect a similar experience.
But the reality is, in many areas and price ranges, the market is adjusting—and it’s important to understand what those changes mean, and what they don’t.
What Is a Seller Concession?
According to Redfin, 44.4% of home sales in the U.S. during the first quarter of 2025 included some form of seller concession. That’s up from 39.3% a year ago and just shy of the record 45.1% seen in early 2023.
But what exactly is a seller concession?
A concession refers to anything a seller provides to help reduce the buyer’s out-of-pocket costs—not including price drops or post-offer price negotiations. Think of it as a financial “sweetener” to help a deal go through.
Here are some common examples:
- Money toward closing costs – A seller might agree to cover part (or all) of the buyer’s closing fees, which can be thousands of dollars.
- Mortgage-rate buydowns – Sellers may contribute funds to help lower the buyer’s mortgage interest rate for the first few years or for the life of the loan.
- Repair credits – Instead of making repairs, some sellers offer a lump sum credit so buyers can handle it themselves after closing.
- Prepaid HOA fees – In some cases, sellers may agree to cover months of homeowners association dues upfront.
- Home warranty plans – A seller might purchase a home warranty on the buyer’s behalf to cover systems or appliances for the first year of ownership.
While the reasons for offering concessions can vary, one thing is clear: they’re becoming more common—and not just in response to inspection requests or minor fixes. If you’re planning to sell in the near future, these kinds of negotiations are something you should be prepared to discuss.
Why It’s Happening (And Why It May Not Affect You)
At its core, this shift comes down to supply and demand.
In many markets, there simply aren’t as many buyers competing for each listing as there were during the frenzy of the past few years. That gives buyers more negotiating power, and concessions are one of the ways sellers are responding.
But this isn’t a nationwide, across-the-board trend…
For example, sellers in Seattle gave concessions in 71.3% of transactions during Q1, which was the highest rate among the 24 major metro areas analyzed. That’s nearly double what it was a year ago.
On the other hand, it was a completely different story in New York City. Concessions there dropped to just 5.5% of transactions, which was down significantly from a year ago and the lowest among major metros.
So, while the data may indicate that there’s an uptick in many areas, it all comes down to your local market.
Agreeing to a Concession Doesn’t Mean You’re “Losing”
The word “concession” can make it sound like the seller is “giving in” or getting the short end of the stick. But in reality, concessions are a common part of real estate negotiation—and have been for decades.
The red-hot seller’s market that defined the past few years created some short-term amnesia. Sellers got used to saying “no” to repairs, waiving contingencies, and watching buyers line up with offers over asking. But historically, that hasn’t always been the norm.
In fact, in balanced markets—or even slightly buyer-leaning ones—concessions are just part of doing business. They help deals move forward. They help buyers feel supported. And they can allow sellers to maintain their list price while still giving buyers a financial break.
And keep in mind that home prices remain near historic highs in many areas. So even if you offer money toward closing costs or repairs, you may still walk away with substantial equity gains.
If you’re asked to consider a concession, don’t think of it as giving in to something other sellers didn’t have to do. In today’s market, a little flexibility might be the difference between sitting on the market and closing the deal.
Rely on Your Local Agent’s Insight to Price and Prepare
If you’re planning to sell in the near future, one of the most valuable tools at your disposal is a real estate agent with a strong pulse on your local market.
What’s happening in one neighborhood—or even one price range—can look very different just a few miles away. A knowledgeable agent will know what kinds of offers are common, how frequently concessions are showing up, and whether your home is likely to spark competition or invite negotiation.
That insight can shape everything from pricing strategy to how you respond to offers. And if concessions are part of the equation, it won’t catch you off guard. You’ll be prepared—practically and emotionally—to navigate the market with confidence.
The Takeaway:
Seller concessions are becoming more common—but that doesn’t mean the sky is falling. It just means buyers have a bit more leverage than they did during the peak of the seller’s market.
And even then, everything depends on location, price point, and timing. Some sellers are still seeing multiple offers and bidding wars. Others are needing to give a little more to get to the finish line.
Either way, today’s sellers are still in a strong position overall. A well-priced, well-presented home—especially one backed by a knowledgeable agent—is likely to sell. If that sale includes a concession or two, that’s not a defeat. It’s just part of the deal.
For Sellers Today and Always.....
22 Things I’ve Learned
Helping People Sell Their Home In Temple/Belton
1.
YOU HAVE TO KNOW YOUR NUMBERS! If you don’t know how much you
owe on your home loan, how much taxes you might owe, what liens you might have
or the cost of potential repairs... you’re in for a big surprise when it comes
time to closing.
2.
Both Realtors & Buyers know if you’re not serious about
selling your home. So if you aren’t ready yet, maybe I should find out more
info for you before you put your home on the market.
3.
Unlike a garage sale... you can’t just randomly make up a price
for your home because that’s what you want/need... there is a method to pricing
your home and even after that it’s still ultimately up to the market to decide
how much your home is worth and how much someone is willing to pay.
4.
Not everything sells the first day on the market... yes some
areas of town might have homes that are in hot demand...but yours might take a
little longer and that’s ok. Before putting your home on the market I’ll let you
know what to expect when you’re expecting...an offer on your home.
5.
Don’t take it personal if someone gives you negative feedback.
Even the most “PERFECT” home can get negative feedback... some people are just
negative. But... also don't ignore it, if we get continued feedback that your
home smells like ???... we'll need to
figure something out.
6.
ZIP IT!!! Don’t tell anyone why you’re selling (except me of
course) You never know who could divulge that info and then get back to a
potential buyer... if they know you “NEED TO SELL FAST” it could cost you $$$
7.
Crappy photos can cost you TIME & MONEY!!! It’s 2021,
homebuyers start their search online and if your listing photos look like they
were taken with a flip phone (actually seen this) then potential buyers could
just keep swiping left and on to the next. Selling your home online is like
online dating... you have to put your best possible shots out there and don’t
be afraid to use angles and filters.
8.
Keep it clean! You wouldn’t buy dirty clothes would you? Or a
filthy car? Then why would think a buyer would think anything positive about a
dirty house... all that says is you might be the type of owner who doesn’t care
to maintain a home and there could be underlying issues. Your home doesn’t have
to be professionally staged to sell... the easiest advice is just KEEP IT
CLEAN!
9.
It’s possible to be UPSIDE DOWN on a home! Yes, sometimes the
numbers just don’t work... either because you’re trying to sell too soon and
don’t have enough equity, you’ve done a loan modification or home equity loan,
refinanced etc. Before putting on the market we’ll go over all this and get you
an estimate of costs to sell so we know what to expect at closing.
10. MONEY
MAKES PEOPLE FUNNY... it’s very possible that after you sell your first home
you could be seeing a check bigger than you’ve ever seen before. Because of
this stress & anxiety levels could be high. Be sure to have a plan in place
so the money is not going to waste.
11. If
you’re married, you and your partner HAVE TO BE ON THE SAME PAGE!!! There’s
nothing worse than when one person doesn’t want to sell and another one does.
It makes everything difficult and uncomfortable.
12.
The Realtor you list your home with MATTERS! Unfortunately, it’s
pretty dang easy to get a Real Estate license, so because of that there’s some
agents out there who will do anything to get a listing and at any price...
which isn’t always in your best interest. Make sure before deciding on a
Realtor® you find out their track record and how experienced they are selling a
home like yours.
13.
On that same note... if you’re able to negotiate a Realtor® down
on their commission... and we’re supposed to be the professional negotiators...
what makes you think they’ll be able negotiate with other Realtors when it
comes time to make a deal on your home?
14.
Make your home available... we don’t need a million people to
buy your home...we just need ONE... so every showing counts... and if we’re
constantly having to tell buyers the home can’t be seen today... they’re going
to move on to the next.
15.
If you think about the sale of your home like a Basketball
game... there’s 4 quarters to a transaction... the first being when it’s active
and looking for a buyer... the second being when you’re in option period with a
buyer performing inspections... the third being when you’re waiting for the
appraisal...and the 4th being when you’re waiting to close! But unlike
basketball there’s no way to know how long each quarter will last and what kind
of surprises will come up. The key is to keep pushing forward and have an
experienced Realtor there with you to be your MVP and get you the
"W".
16.
If you find out during the “Option Period” your home needs major
repairs...DONT FREAK OUT! We’ll talk you through your options and let you know
what the best and most affordable route to take is.
17.
EVERYTHING is negotiable, don’t be surprised if a buyer ask for
your fridge, curtains, furniture or play-set... we’ve even seen buyers ask for
a sellers dog!!! ( not negotiable or course) But despite our furry friends know
that everything else could be the bargaining chip we need to make a deal.
18.
It’s OK if you decide to change your mind once it goes on the
market and things “get real”! Once you start having people look and walk
through your home things start to get very real and can make you start having
second thoughts... if this happens no hard feelings. All we want is to make
sure you’re happy... and if that means holding off on things until another
time... it’s all good.
19.
WE WILL NOT MAKE YOU HOMELESS... if you’re looking to sell and
buy a new home we will come up with a plan that works for everyone. Have
comfort knowing we help people do this EVERY DAY and we're not going to get you
in a situation where someone is pushing you out of your home before you know
where you're going!
20.
There will be a point you’ll have to start packing and buyers
will start to move in! I know... CRAZY RIGHT? On most transactions once funding
is complete the new buyer legally owns the home and you’ll need to be out of
there! We will make sure you don’t get caught in an awkward situation.
21.
Every home and every transaction is different, so don’t be
scared by some of the horror stories that are out there... someone else’s bad
experience selling their home doesn’t mean that’s what you’re going to go
through.
22.
TAKE YOUR TIME before deciding to sell your home. It’s very rare
that someone wakes up one day and says... “I want to sell my home today”! It’s
a big decision and you should take your time and find out as much as possible
before putting your home on the market.
My company has helped thousands of homeowners just like you sell their home right here in Central Texas. Want to know more? Have a question I didn’t cover above? Then make sure you ask for my “Ultimate Sellers Guide” and if you have any questions about where to start or anything Real Estate related, Text/Call me.
Fall Real Estate Market Expected to Be Slightly More Buyer Friendly
Summer is almost over, which means the temperatures are about to cool off. And while there’s no guarantee, it looks like the housing market may cool along with it—at least slightly.
According to a recent article from realtor.com, many experts expect that, while the fall buying season will be competitive, it won’t be quite as frenzied as the spring or fall.
One indicator supporting that projection is the pace of price growth. According to the article, the national median home price hit $385,000 the week ending August 14 (the highest on record). That price represented a 8.2 percent increase year over year—a definite increase in price, but significantly less than the 17.2 percent increase from April 2020 to April 2021. Inventory is also starting to increase (according to data from the National Association of REALTORS®,1.32 million homes were available for sale in July 2021—a 7.3 increase from June)—and the more inventory is available in the fall, the easier the home search process will be for buyers.
The Takeaway:
So, what does this mean for you? There’s no denying that fall is shaping up to be a competitive season for real estate—but with slowing price growth and increasing inventory, it could prove to be less competitive than it has been for quite a while.
Tips For Making A Safe Move During The COVID-19 Pandemic
- Drive instead of fly. Car travel puts you at less risk of exposure to COVID-19 than air travel. However, make sure to plan ahead and implement safety practices (like wearing a mask and frequent hand washing) when you stop for gas, to use the restroom, or to pick up snacks.
- Research your movers. If you’re going to hire movers, make sure to call ahead and ask about their COVID-19 safety policies, practices, and procedures.
- Choose cardboard over plastic. If your movers are going to be moving your belongings, pack in cardboard instead of plastic. COVID-19 can last up to one day on cardboard—but up to three days on plastic.
- Disinfect new points of contact. When you arrive at your new home, make sure you disinfect any frequent points of contact, like doorknobs and cabinet pulls.
- Wipe everything down. Once your boxes and furniture have been unloaded at your new residence, make sure to wipe them down before you unpack. Wash your hands after you touch anything the movers may have touched.
Why Home Prices are Still Rising Despite the Global Pandemic???
“The slight increase this week is because prices are sticky. Home sellers are strongly resistant to lowering prices, and they’d gotten really close to declining, so we see a bounce-back. I don’t think this is a return to big price increases.”
Social distancing is one of the most responsible things you can do right now—both to protect your health and the health of the people in your community. And with social distancing in full swing, searching for a home in the traditional sense—including going to tour homes in person—is getting put on the back burner.
But just because you can’t see homes in person doesn’t mean your home search has to suffer! A recent article from realtor.com outlined tips for conducting a virtual house hunt that’s just as good as the real thing, including:
Look for red flags in listing photos. You don’t want to waste your time virtually touring homes that aren’t going to be the right fit. When going through a listing, look for red flags that might indicate that a listing isn’t what it seems—and isn’t worth your time (for example, photos that are stretched in an effort to make the room look bigger, or a complete lack of photos of the home’s interior).
Ask your real estate agent to go into detail during virtual tours. Thanks to technology like Zoom or FaceTime, your agent can take you on a virtual tour of potential properties. But video doesn’t catch all the small details you would catch if you were physically in the space (like the finishes on cabinets, or crown molding on the ceiling)—so make sure to ask your agent to talk you through those details.
Check out the neighborhood. There are a ton of interactive map tools on the internet that will give you insights into a potential home’s neighborhood—so make sure you use them.
Bottom line? If you’re looking for a home right now, you’re going to have to get creative with your home search. But with a little creativity, technology, and patience, there’s no reason your virtual home search can’t be just as effective as a traditional search!