Winning Strategies: How Seller Concessions Can Help Seal the Deal

According to Keeping Current Matter, the real estate market is shifting as inventory increases, creating a more balanced environment for buyers and sellers. With this change, some sellers are finding that flexibility can be key to closing a deal. One effective strategy? Offering concessions.

Understanding Seller Concessions

Seller concessions are incentives offered to buyers to make a home purchase more appealing. According to recent data, nearly 24% of sellers in 2024 provided some form of concession to facilitate their sale. Here are some of the most common types:

• Covering Closing Costs: Sellers can agree to pay for part or all of a buyer’s closing costs, such as appraisal fees, title insurance, or loan fees, reducing the upfront expenses for the buyer.

• Price Adjustments: Instead of making repairs, sellers may lower the purchase price to account for necessary updates the buyer will need to handle.

• Adding a Home Warranty: Offering a home warranty can give buyers peace of mind, covering key repairs during their first year of ownership.

The good news? These concessions typically come out of the seller’s profits at closing, rather than requiring additional out-of-pocket expenses. Plus, not all concessions are financial—sometimes, small gestures like leaving behind a lawn mower for a first-time homeowner with a yard can make a difference.

The Advantage of Offering Concessions

Seller concessions can be a powerful tool in negotiations. For instance, if a buyer requests repairs after an inspection, offering a concession can keep the deal on track. Sellers have options:

• Handling Repairs: Taking care of necessary fixes before closing to ensure a smoother transaction.

• Reducing the Purchase Price: Adjusting the price to reflect repair costs, allowing the buyer to handle them post-sale.

• Covering Buyer’s Closing Costs: Easing the buyer’s financial burden so they can allocate funds toward repairs themselves.

By strategically using concessions, sellers can make their home stand out, attract serious buyers, and ultimately achieve a successful sale.

Bottom Line

As the market continues to evolve, seller concessions are becoming a valuable tool for securing deals. Understanding how and when to offer these incentives can make all the difference in ensuring a smooth and successful home sale.


source: www.keepingcurrentmatters.com