Sellers May Be Open to Offering Concessions

In real estate, negotiation is a big part of the game—and one of the most helpful tools in your corner is something called a seller concession. It might sound a little formal, but it’s really just a way for sellers to help cover some of the buyer’s costs, which can be a win for both sides. Whether you're buying your first home or you've done this a few times before, understanding how concessions work can help you save money and feel more confident during the process. And the best part? A REALTOR® can walk you through it all, spot opportunities you might miss, and help make sure the deal works in your favor.

What are Seller Concessions?

Seller concessions are a powerful, often underutilized tool in real estate. They’re costs that the seller agrees to cover to help reduce the buyer’s out-of-pocket expenses. Buyers can use concessions to cover:

• Closing costs

• Inspection or repair credits

• Title insurance

• Appraisal fees

• And more

Why This Matters Now

In today’s market—especially when a home has been on the market for a while—sellers are often more open to negotiation, which can create opportunities for both sides. According to a March 2025 Redfin article, nearly half of sellers in some metro areas are offering concessions to help close the deal.

For buyers, this can mean:

• Lower upfront costs, making homeownership more accessible

• The ability to afford homes that might have been just out of reach

• Room to negotiate repairs or upgrades before moving in

For sellers, offering concessions can:

• Attract more buyers, especially in a competitive or slower market

• Help the home stand out among similar listings

• Lead to a faster sale, sometimes even at a higher overall price when structured strategically

Things to Keep in Mind

Buyers and sellers should be aware of loan limits, appraisal requirements, and the importance of a solid negotiation strategy when considering seller concessions.

• Most loan programs (like FHA, VA, and conventional loans) have limits on how much a seller can contribute

• The home must still appraise for the full sale price, including the concession

• Seller concessions should be part of a broader negotiation strategy. Work with a knowledgeable real estate professional to structure the deal effectively

Recent data from Keeping Current Matters and Redfin shows that 44% of home sellers are offering concessions—such as help with closing costs or repair credits—as high prices, mortgage rates, and economic uncertainty reduce buyer demand. In cities like Seattle, over 70% of sellers are making such offers. Redfin agents note that many buyers, especially first-timers, now rely on concessions to afford homeownership.

Seller concessions are a win-win when used strategically. They can ease the financial burden for buyers while helping sellers close deals faster and at favorable terms. Whether you're buying or selling, understanding this tool can give you a valuable edge in your next real estate transaction.

Working with a skilled REALTOR® can help both parties navigate these negotiations and make the most of what seller concessions have to offer.