Seller Concessions: A Smart Strategy To Get Your House Sold
For the past few years, it’s been mostly a seller’s market. But dynamics are shifting as the number of homes for sale grows. And that means that the market is balancing out a bit. As a result, some sellers are finding they need to be more flexible to close a deal. One strategy that can help? 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?
Concessions are homebuying costs that a sellers agrees to cover as a way to get their house sold. And based on data from the National Association of Realtors (NAR), nearly 1 out of every 4 sellers (24%) offered a concession in 2024. Here are a few of the most common types of concessions:
- Covering Closing Costs: The seller pays for part (or all) of the buyer’s closing costs, like appraisal fees, title insurance, or loan fees.
- Price Adjustments: Instead of making repairs, a seller might lower the purchase price to make up for updates the buyer will need to tackle.
- Adding a Home Warranty: A seller may throw in a home warranty, giving the buyer peace of mind key repairs will be covered in the first year.
And don’t worry. This doesn’t mean you have to come up with more cash to make it happen. These are things that get subtracted from your profits at closing – not more funds you have to bring to the table. And not all concessions are about money.
There are other extras you could throw in. Like, if your buyer is coming from an apartment and has never had a yard before, they may ask if you’d be willing to leave your lawn mower behind. That’s another lever you could pull to keep them happy.
How Concessions Help Sellers
Offering concessions can be a smart strategy for sellers to get a deal done. As Dennis Shirshikov, Professor of Finance and Economics, 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 example, let’s say you accepted an offer from a buyer, but after their inspection, you found out there are some repairs they want you to tackle before you hand over the keys.
Rather than starting at square one and searching for a new buyer, you could offer a concession. One option is you can take on the repairs and cover the costs yourself. But, if you really don’t want the hassle of dealing with contractors, you could reduce your price by however much repairs would cost. Alternatively, you could offer to pay a portion of your buyer’s closing expenses with the idea they’d use the money they saved at closing toward doing the repairs themselves.
Either way, a concession can be a great way to meet in the middle. However, it’s important to have an agent on your side to help with these negotiations.
A good real estate agent can help you decide when and how to offer concessions, so you don’t give away too much while still ensuring your house gets sold. It’s all about finding the right balance.
Bottom Line
With the market becoming more balanced, seller concessions are coming back into play in some areas. The key is having an agent to help guide you through the process, so things work out in your favor. That’s where I come in.
What’s a concession you’d consider to move things along?
Seller Concessions: A Smart Strategy To Get Your House Sold
The real estate market has seen a dramatic shift in recent years. While it was once a seller’s market, favoring those listing their homes, an increase in home inventory has begun to tip the scales toward market balance. As a result, many sellers are exploring ways to maintain a competitive edge and ensure a smooth transaction. One highly effective concession strategy that can make all the difference? Seller concessions.
Understanding Seller Concessions
At its core, seller concessions are incentives offered by the seller to sweeten the deal for buyers. These can range from covering closing costs to providing a home warranty or even adjusting the purchase price to account for necessary home repairs. As the National Association of Realtors (NAR) notes, nearly one in four sellers offered some form of concession in 2024. Why? Because a well-crafted property sale strategy can be the key to ensuring your house gets sold in an increasingly competitive market.
Types of Seller Concessions
- Covering Closing Costs
One of the most common buyer incentives is offering to cover part or all of the closing costs, which may include appraisal fees, loan fees, and title insurance. These expenses can be a significant financial burden for buyers, so alleviating them makes the purchase more appealing. - Price Adjustments
Instead of completing home repairs, a seller might lower the purchase price to compensate for necessary updates. This approach allows buyers to tailor the renovations to their preferences. - Providing a Home Warranty
A home warranty offers peace of mind to buyers by covering the cost of essential repairs within the first year. This can be a particularly attractive option for first-time buyers who may be unfamiliar with home maintenance. - Non-Monetary Perks
Not all concessions are financial. A seller can throw in extras such as appliances, furniture, or even a lawn mower to make the deal more attractive.
How Seller Concessions Benefit Sellers
While concessions might seem like an added expense, they can actually be a smart strategy that helps sellers secure a deal faster and with fewer obstacles.
- Attract More Buyers
In a market where buyers have more choices due to increased homes for sale, offering concessions can make your listing stand out. - Speed Up the Selling Process
A well-placed concession strategy can prevent a deal from falling apart during real estate negotiations, particularly if issues arise during the buyer’s inspection. - Increase Net Profit
While concessions might reduce your profits at closing, they can help you avoid costly delays or additional carrying costs.
Negotiating Seller Concessions
Successful real estate negotiations require finesse. A good real estate agent will guide you through the process, ensuring that concessions are structured in a way that benefits both parties. The goal is to strike a balance—offering enough buyer advantages to close the deal while preserving the seller’s financial interests.
Key Factors to Consider
- Market Conditions
In a strong seller’s market, concessions may not be necessary. However, in a more balanced market, they can provide an advantage in the market. - Buyer’s Financial Situation
Some buyers, especially those seeking first-time home buyer loans in West Palm Beach, may have limited cash on hand. Covering homebuying costs like loan fees can be a deal-clincher. - Type of Property
The age and condition of your home will impact whether repairs or a home warranty are more appealing to buyers.
The Role of a Real Estate Agent
A good real estate agent plays a crucial role in crafting an effective strategy to get your house sold. They analyze current market trends, assess buyer behavior, and recommend the right mix of concessions. An experienced agent will also handle the buyer-seller agreement and ensure that all concessions are properly documented.
Financial Strategies for Buyers and Sellers
For buyers, finding the right mortgage is just as critical as securing concessions. If you’re buying a home in West Palm Beach, consider working with a West Palm Beach mortgage broker who can help navigate affordable West Palm Beach home loans. Whether you’re looking for the best mortgage rates in West Palm Beach, exploring West Palm Beach refinancing options, or seeking guidance from local mortgage lenders in West Palm Beach, these professionals can provide tailored property loan advice in West Palm Beach.
Tools for Buyers
- West Palm Beach mortgage calculators help buyers determine how much house they can afford.
- Mortgage preapproval in West Palm Beach strengthens a buyer’s offer, making it more attractive to sellers.
- For investors, a commercial mortgage broker in West Palm Beach can assist with financing income-generating properties.
Making Seller Concessions Work for You
To maximize the benefits of seller concessions, sellers should work closely with their agent to structure deals that appeal to buyers while protecting their own financial interests. Offering the right mix of buyer incentives can be the difference between a stagnant listing and a successful sale.
Additional Considerations for Sellers
- Timing Matters: Understanding when to offer concessions can be key. If your home has been on the market longer than expected, strategic incentives can attract buyers.
- Local Market Trends: Working with a knowledgeable agent ensures you are aware of what other sellers are offering in your area.
- Competitive Edge: In a crowded market, concessions help differentiate your listing from others, making it more appealing to potential buyers.
Final Thoughts
As the real estate market continues to evolve, employing a well-planned concession strategy can give sellers a crucial advantage in the market. By understanding the various types of seller concessions, leveraging effective real estate negotiations, and working with a good real estate agent, you can create a smart strategy that leads to a smooth and profitable transaction. Whether it’s covering closing costs, offering price adjustments, or providing a home warranty, the right approach ensures a win-win situation for both parties.
Thinking about selling your home? Now is the time to strategize and make the most of every opportunity to attract the right buyer and get your home sold—on your terms.
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