In today’s real estate market, serious buyers are out there but they’re feeling the pinch of high interest rates and upfront costs. As a seller, that means one thing: it’s time to get strategic.
What is one of the most effective tools sellers are using right now? Seller concessions.
What Is a Seller Concession?
A seller concession is when you, the seller, agree to cover certain costs on behalf of the buyer to help close the deal. These might include:
- A credit toward closing costs.
- Funds for a temporary or permanent mortgage rate buy-down.
- A credit for repairs or upgrades.
- A few months of HOA dues or property taxes.
- To pay their buyer's agent fee.
In short: instead of lowering your price, you offer a targeted financial incentive that helps the buyer say yes—while still protecting your bottom line.
Why Offer a Concession Instead of Dropping the Price?
Let’s say you’re listing your home at $1,000,000.
You could drop the price to $980,000 to attract interest. OR you could keep the price at $1,000,000 and offer a $20,000 credit that helps the buyer lower their monthly mortgage payment by using it for a rate buy-down.
Here’s the thing: many buyers value monthly affordability more than the overall price.That credit might be the reason they can afford to move forward—without you needing to take a price hit.
Here’s a Real Example:
|
Option |
Sale Price |
Concession |
Monthly Payment (est.) |
Perceived Value |
|
Lower Price |
$980,000 |
$0 |
~$6,674/mo @ 7.25% |
Lower price, but high payment |
|
Concession |
$1,000,000 |
$20,000 rate buydown |
~$5,836/mo (Year 1 @ 5.75%) |
Higher price, lower payment |
In this case, the seller nets about the same, but the buyer gets a more affordable monthly payment—and is more likely to write an offer.
The Bottom Line
In a market where buyers are rate-sensitive and cautious, small financial incentives can make a big difference. A seller concession helps your listing:
- Stand out without a major price cut.
- Attract well-qualified, motivated buyers.
- Close faster and with fewer negotiations.
As a listing agent, I help my sellers decide when and how to offer concessions strategically—so you're not giving up more than you need to, but you're still putting yourself in the strongest position to sell.
Thinking of Selling?
If you're curious about what a strategic concession might look like for your property—or whether it's the right move for your situation—let’s talk. I’ll walk you through your options and help you decide what makes the most sense in today’s market.
