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s the housing market shifts in favor of buyers, sellers may need to offer more concessions to make their homes attractive and secure a sale. According to Cooper Thayer, ABR, broker-associate at Keller Williams Action Realty in Denver, "buyers can be deterred if they don't feel like they're getting some kind of deal." Concessions are essentially when the seller covers certain costs associated with the purchase of the home, making homeownership more accessible for buyers by reducing upfront costs.

    In a market where buyers have more negotiating power, concessions can help sellers stand out. According to NAR data, only 24% of sellers nationwide offered a concession in 2024, down from 33% the previous year. However, with more homes on the market and pending home sales increasing, sellers may need to differentiate themselves by offering concessions.

    Concessions can cover a wide range of costs, including title searches, home repairs, and fees for real estate agents and appraisers. Closing costs were the most common concession in 2024, particularly in markets with high volumes of first-time buyers. In Salt Lake City, where the median age of residents is 33, Scott Robins, an associate broker at Summit Sotheby's International Realty, notes that "first-time home buyers are huge in our area" and often need help with concessions.

    Robbins says 2-1 buydowns as a seller concession are popular, where the seller pays to reduce the buyer's mortgage rate by two percentage points for the first year and one percentage point for the second year. Home repair credits are also common, particularly in new construction, where builders can offer incentives to attract buyers.

    Marlene Llamas Leon, ABR, CIPS, of LPT Realty in Miami recalls a recent deal on a large estate where her sellers chose to make a concession after discovering six roof leaks during an inspection. The buyer opted for a price reduction instead of a credit. Thayer advises his sellers to make repairs before putting their homes on the market to minimize potential concessions and objections from buyers.