A new report reveals that a growing number of home sellers are offering concessions to buyers. In fact, about 44% of U.S. home transactions in the first quarter of 2025 involved these types of agreements, marking an increase from last year. This shift indicates that the real estate market is becoming more favorable for buyers, especially in competitive areas.
What Are Home Seller Concessions?
Home seller concessions are agreements made between buyers and sellers to adjust the terms of the sale, often based on new conditions. For example, a seller might offer to reduce the price of the home or cover the costs for repairs revealed in a home inspection. These concessions can also include offering money to help with mortgage-rate buydowns or covering certain closing costs. As competition in the market intensifies, more sellers are using these strategies to secure deals without lowering the sale price.
Why Home Seller Concessions Are on the Rise
In today’s real estate landscape, high home prices and mortgage rates are impacting both buyers and sellers. For sellers, the desire to get the highest possible price for their property is at odds with the reality of fewer buyers being able to afford these elevated costs. Home seller concessions offer a way for buyers to afford homes while still allowing sellers to keep their asking price intact.
With listings at a five-year high and economic uncertainty in the mix, sellers are turning to these agreements more frequently. They see it as a way to make deals happen while protecting their net proceeds. In places like Seattle, where over 70% of transactions involve concessions, this trend is especially noticeable.
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Source: www.investopedia.com
