Short Answer
Seller concessions are incentives you offer to the buyer as part of the sale, such as paying a portion of the buyer's closing costs, buying down their interest rate, or including a home warranty. Concessions are common in buyer's markets or when a home has been on the market for a while. They can help close the deal but reduce your net proceeds. The most common concession is a credit toward the buyer's closing costs, typically 2% to 3% of the purchase price.
Seller concessions are a tool to make your home more attractive to buyers and help overcome obstacles to closing. The most common concession is a credit toward the buyer's closing costs, which reduces the cash the buyer needs to close. This can be especially helpful for first-time buyers who may have limited cash reserves. You can also offer to buy down the buyer's interest rate through a temporary or permanent rate buydown, which reduces their monthly payment. Other concessions include paying for the buyer's home warranty, covering HOA fees for a period, or including appliances or furniture in the sale. Concessions are most common in buyer's markets, when homes are sitting on the market, or when you need to attract a specific type of buyer. However, concessions reduce your net proceeds from the sale. Every dollar you give in concessions is a dollar less in your pocket. Your agent can help you determine whether offering concessions makes sense for your situation and how to structure them to maximize their impact while minimizing the cost to you.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Seller concessions can be an effective tool to get a deal done, but they should be used strategically. I have seen sellers offer concessions that made the difference between selling and sitting on the market. I have also seen sellers offer concessions they did not need to. I will help you evaluate whether concessions make sense in your situation and how to structure them to get the best outcome for you.
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