The real estate market is shifting. With more homes for sale than in recent years, buyers have more options—and sellers are facing stiffer competition to close the deal. One of the most effective strategies to stand out? Seller concessions.
In this post, we’ll break down what concessions are, why they’re becoming more common, and how you can use them to your advantage without losing money.
Why Concessions Are Back in the Spotlight
According to recent data, almost half of all home sellers are offering concessions to buyers in 2025. This is a significant increase compared to just a few years ago when homes were selling in days—often over asking price—without the need for extra incentives.
The reason? Inventory has increased, giving buyers more choices and more negotiating power. Sellers who want to move quickly are finding that offering a concession can be the difference between a home that lingers on the market and one that sells.
What Exactly Is a Seller Concession?
A seller concession is anything you, as the seller, agree to do or offer to make your property more appealing to buyers. Concessions can take many forms, such as:
-
Covering closing costs – Helps buyers reduce upfront expenses.
-
Reducing the asking price – Makes your home more competitive in the market.
-
Making repairs – Addresses issues that could deter buyers.
-
Offering a home warranty – Provides buyers peace of mind after closing.
Why Concessions Don’t Mean Losing Money
Here’s the key mindset shift: Think of concessions as tools, not trade-offs.
Since home prices have risen about 55% in the last five years, most sellers have room to make a concession or two while still walking away with a strong profit. Even a small adjustment can make your listing stand out in a crowded market—and help you avoid costly price drops later.
How to Choose the Right Concessions
Not all concessions work equally well in every situation. The right strategy depends on your property, the local market, and your ideal buyer profile. For example:
-
If your home is in great shape, offering to cover part of the closing costs might be enough.
-
If your property needs updates, targeted repairs could make it more attractive.
-
If you’re targeting first-time homebuyers, a home warranty or reduced upfront costs can be very appealing.
Bottom Line
Concessions aren’t a sign of weakness—they’re a smart selling strategy in a competitive market. With more inventory on the market, sellers who adapt to today’s conditions will find themselves signing contracts faster and at better terms.
Not sure which concessions will get you the best results? Let’s connect and discuss what’s working for sellers right now in your neighborhood.
