Smart Moves for Sellers: How Concessions Can Seal the Deal in a Competitive Market

Smart Moves for Sellers: 

How Concessions Can Seal the Deal in a Competitive Market

For the past few years, the real estate market has been largely in favor of sellers. However, as inventory grows and the market begins to balance, sellers may find themselves needing to adjust their approach to close a deal. One effective strategy? Offering seller concessions.

As the National Association of Realtors (NAR) highlights:

“With more homes on the market and buyers gaining more leverage, sellers may need to offer incentives in negotiations to make their property stand out and seal the deal.”

What Are Seller Concessions?

Seller concessions are homebuying costs the seller agrees to cover to help make the transaction smoother and more attractive for buyers. According to NAR data, nearly 24% of sellers offered concessions in 2024. Some of the most common concessions include:

• Covering Closing Costs: Sellers can agree to pay some or all of the buyer’s closing expenses, such as appraisal fees, title insurance, or loan fees.

• Price Adjustments: Instead of handling repairs, a seller may reduce the home’s price, reflecting the buyer’s expected expenses for future updates.

• Adding a Home Warranty: Offering a home warranty provides peace of mind to buyers, ensuring key repairs are covered in the first year of ownership.

And don’t worry—seller concessions don’t mean you need extra cash. These costs are deducted from your final profits, so it’s a way to get the deal done without pulling out additional funds. Plus, not all concessions involve money. You can include extras like leaving behind a lawnmower for a buyer new to owning a yard. It’s all about making the transaction work for both parties.

Why Seller Concessions Work

Offering concessions can be a smart way to get your home sold, especially as the market becomes more balanced. Dennis Shirshikov, a Professor of Finance and Economics at City University of New York/Queens College, explains:

“Realistic pricing and offering concessions, such as covering closing costs or adding upgrades, are key to closing deals in a less competitive market.”

For example, let’s say your buyer has made an offer, but their inspection reveals needed repairs. Rather than starting over with a new buyer, you can offer a concession. You could take on the repair costs yourself or adjust the price to reflect the cost of repairs. Alternatively, you could cover part of the buyer’s closing costs, which would give them the flexibility to handle repairs once they’ve moved in.

Either way, a concession can help bridge the gap and keep the deal on track. Having an experienced agent by your side is crucial during these negotiations to ensure you’re making the right decision while still getting the most for your home.

Why Choose Sac Platinum Realty?

At Sac Platinum Realty, we pride ourselves on offering expert guidance and a tailored approach to every client. Our team of top-producing agents understands the nuances of today’s market and is dedicated to helping you navigate the selling process smoothly and successfully. Whether it’s strategizing with seller concessions or maximizing the value of your property, we’re here to ensure you achieve the best outcome possible.

Take the Next Step with Sac Platinum Realty!

Ready to learn more about how Sac Platinum Realty can help you sell your home for top dollar? Visit our website, follow us on Facebook and Instagram, and subscribe to our YouTube channel for all the latest tips, updates, and insights about the Sacramento real estate market!