Selling a home often involves negotiation. One tool that can help you attract buyers, smooth out deal hiccups, and close faster is the seller concession. Instead of cutting your asking price, you can offer to cover certain costs or provide credits that reduce the buyer’s upfront expenses
Whether you’re selling a home in Seattle, WA, Austin, TX, or Chicago, IL, this Redfin guide will walk you through seller concession examples, why they matter, and how to know when offering them makes sense.
What are seller concessions?
Seller concessions are incentives that a seller agrees to provide during the home sale process. They typically involve covering or offsetting some of the buyer’s expenses, which can lower upfront costs and make the purchase more affordable.
Common concessions include:
- Paying for closing costs such as escrow, title insurance, or loan origination fees
- Offering cedits for repairs or upgrades flagged during a home inspection
- Contributing toward a buyer’s interest rate buydown to reduce monthly mortgage payments
- Providing perks such as home warranties, cosmetic allowances, or even personal property like appliances
In short: concessions don’t change the price of your home, but they do change the financial picture for the buyer.
When do seller concessions make sense?
Seller concessions often emerge during negotiations to help smooth out cost or timing challenges. These are the most common situations:
- During inspection negotiations: If issues are discovered during home inspection, sellers may offer credits instead of completing repairs.
- When financing requires fixes: Some loans (FHA, VA) require homes to meet certain standards. A seller concession can cover the cost.
- In slower markets: Concessions can help attract budget-conscious buyers.
- For a faster close: Sellers may offer credits to encourage a quick timeline.
Common seller concession examples
Seller concessions can aid…