Maximizing Sales: The Power of Seller Concessions

According to keepingcurrentmatters.com, the real estate market is shifting as inventory increases, creating a more balanced environment. As a result, sellers need to be more flexible to close deals, and one effective strategy is offering concessions.

What Are Seller Concessions? Seller concessions are incentives provided to buyers to help facilitate a sale. The National Association of Realtors (NAR) reports that nearly 24% of sellers in 2024 offered concessions. Common types include:

• Covering Closing Costs: Sellers may pay part or all of the buyer’s closing costs, such as appraisal fees, title insurance, or loan fees.

• Price Adjustments: Instead of making repairs, sellers can lower the purchase price to compensate for necessary updates.

• Offering a Home Warranty: A home warranty gives buyers peace of mind by covering key repairs in the first year.

These concessions are deducted from the sale proceeds, so sellers don’t need extra cash at closing.

How Concessions Help Close Deals In a less competitive market, offering concessions can attract buyers. As Dennis Shirshikov, Professor of Finance and Economics at City University of New York/Queens College, explains:

“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, if a buyer requests repairs after an inspection, sellers can either make the repairs, lower the price, or contribute toward closing expenses, allowing buyers to handle the repairs themselves.

The Value of Expert Guidance A skilled real estate agent can help determine when and how to offer concessions, ensuring sellers remain competitive without giving away too much.

As the market balances, seller concessions are becoming more common. Working with an experienced agent can help sellers negotiate effectively and achieve the best possible outcome.

Source: keepingcurrentmatters.com