Homebuyers

More Home Sellers Are Offering Concessions. This Is How Homebuyers Can Save Big

In a real estate market that can often feel challenging when it comes to affordability, homebuyers may be surprised to learn they have more power than they might think.

One of the smartest tools at their disposal are seller concessions. These perks, which can range from the seller contributing to closing costs to making expensive repairs, have skyrocketed recently. They’re particularly common in Florida, Texas, and other markets where buyers have more homes to choose from.

“The only concessions in my 25 years in the business until about a year ago would be something like a carpeting allowance,” said Jeff Lichtenstein, a real estate broker at Florida’s Echo Fine Properties in Palm Beach Gardens, Fla. “Today, nearly everything is a concession. It’s wise to see what one can negotiate.”

But the key lies in knowing what to ask for—and when.

What exactly are seller concessions? 

Seller concessions are terms a seller agrees to cover as part of the home sale. This is to make the deal more appealing—or keep it from breaking down. 

“Concessions are a way for homebuyers to get what essentially is a credit at closing toward things like repairs, home inspection issues, closing costs, and any other items,” said Jason Gelios, a Realtor at Community Choice Realty in South East Michigan.

Think of them as real estate’s version of deal sweeteners. And more sellers are willing to toss them in the pot—especially if their home has lingered on the market longer than expected or if they’re juggling a job relocation or contingent home purchase of their own.

For buyers, this is an opportunity to save thousands at closing or secure a more affordable monthly mortgage payment. 

The most valuable concessions to ask for

Concessions aren’t offered out of thin air—they’re negotiated.

And not all concessions are created equal. The best options depend on your financial situation and the specific details of the home you’re considering. That said, there are a few tried-and-true concessions:

Closing costs: One of the most common—and useful—concessions is to ask for a seller to contribute to your closing costs. These fees typically run 2% to 5% of the home’s purchase price.

On a $400,000 home, that’s up to $20,000 in out-of-pocket expenses. Buyers can ask the seller to cover the cost (or a portion of it). This can significantly reduce how much money you need to bring to the closing table.

Mortgage interest rate buydown: Some buyers negotiate for the seller to cover a mortgage rate buydown. This is essentially prepaying interest upfront to lower your rate. A 2–1 buydown, for example, lowers your rate by two percentage points for the first year of your mortgage, then one percentage point for the second. Then the rate reverts to rate you locked in when you closed on your loan.

This saves buyers money in the first years of owning a home.

“I recently worked with a seller who gave a $10,000 credit to cover the buyer’s rate buydown,” said Ron Myers of Ron Buys Florida Homes. “The seller was willing to cover the extra costs just to close fast and move on.”

Repairs and credits: After receiving the inspection report, buyers may not want to simply walk away if problems are found. Instead, you may ask the seller to either make the necessary repairs or issue a credit at closing. That way, you’re not stuck footing the bill for an outdated HVAC system or a leaky roof on day one.

Gelios also had buyers who benefited from concessions after a home inspection.

“My homebuyers and I were at a home inspection, which revealed several issues with the sewer drainage lines,” said Gelios. “[This] constituted us asking for a $2,000 concession, or credit, at closing to fix the issue.”

HOA fees or home warranty: In communities with homeowners associations (HOAs), annual dues can add up significantly.

Some buyers can request that the seller cover the first year. Others request a home warranty—essentially an insurance plan that covers key systems and appliances. This can provide them with peace of mind that they’re not on the hook for costly repairs without an added monthly expense.

Timing is everything when asking for concessions on a home

When buyers ask for concessions matters almost as much as what they’re asking to gain. 

If a home has been on the market for a few weeks or longer, the seller may already be prepared to consider price cuts. They may also be more open to a request that keeps the offer price high, but cuts costs elsewhere.

Similarly, if the seller has already relocated or is under pressure to close quickly, a concession can be a win-win.

Concessions can also be built into your initial offer. Some buyers include them in the purchase agreement from the outset, particularly if they are aware that the property has experienced recent price drops or has visible repair issues.

In other cases, the post-inspection phase is your opportunity to revisit terms and pursue credits.

Don’t overplay your hand when seeking concessions

Yes, today’s buyers have more leverage—but don’t confuse that with carte blanche.

Lowballing the offer and asking for hefty concessions can backfire, especially if the home just hit the market or there’s another interested party.

The goal isn’t to “win” every term. It’s to make a strong, fair offer that meets your needs and still feels like a good deal to the seller.

Often, buyers are better served keeping the purchase price intact and negotiating for concessions that help reduce the amount of cash upfront or provides them with lower mortgage payments.

Remember: Concessions are tools. Used wisely, they can help you buy a home that otherwise might have been just out of reach—or give you the breathing room you need to move in confidently and comfortably.