Let’s Make a Deal: Why Concessions and Incentives Are Back in the Housing Market
Negotiations are officially back on the table. More buyers are asking for better deals, and more sellers—and builders—are giving them.
Whether you’re looking to buy or sell today, there are two terms you’re going to hear a lot: concessions and incentives. While they sound similar, they play different roles in a real estate transaction:
A Concession: Something a seller agrees to during negotiations to get a deal across the finish line.
An Incentive: A perk a builder or seller advertises upfront to attract buyers into the door.
Here is a breakdown of what you need to know about both and how they could play a massive role in your next move.
More Sellers Are Agreeing to Concessions
If you feel like buyers have a bit more leverage lately, you're right. According to recent data from Redfin, almost half (46%) of homeowners who sold recently gave the buyer a concession. That’s the highest share on record for this time of year
Even more telling? Roughly 1 in 7 (16%) sellers went a step further, cutting their asking price and offering a concession on top.
Common Seller Concessions Include:
Covering a portion of the buyer's closing costs.
Taking care of specific repairs flagged during home inspections.
Offering a cash credit at closing to trim the buyer's upfront costs.
The Takeaway: When buyers have more options to choose from, concessions are how homeowners keep a deal on track instead of watching a buyer walk away.
Builders Are Cutting Prices, Too
Think builders don't negotiate? Think again. Newly built homes are seeing the exact same push and pull. Data from the National Association of Home Builders (NAHB) shows that 62% of builders are actively offering incentives, and about 35% are cutting prices outright.
Typical Builder Incentives Right Now:
Price adjustments: Direct drops on the base price of the home.
Mortgage rate buydowns: Paying to lower the buyer's interest rate for the first few years (or the life) of the loan.
Free upgrades: Throwing in high-end finishes, smart home tech, or premium appliances at no extra cost.
This isn't a temporary blip, either. This marks the 15th straight month where more than 60% of builders have offered incentives to sweeten the deal.
As Danielle Hale, Chief Economist at Realtor.com, explains:
"New construction has been one of the steadiest parts of the housing market over the past few years, but builders are clearly responding to today’s affordability pressures and higher levels of existing-home inventory."
What This Means for Your Move
🛒 If You’re Buying: It’s Time to Ask
Whether you have your eye on an existing house or a brand-new build, don't be afraid to negotiate. There is a very high probability that the seller or builder will meet you partway on price, terms, or perks to secure your contract.
🔑 If You’re Selling: Expect the Request
Buyers are looking for relief from affordability pressures. Because even builders of brand-new homes are making concessions, holding firm on every single term could mean your house sits on the market longer—or you lose the sale altogether.
The Bottom Line
Sellers and builders are both giving buyers more to work with this year. Because real estate is hyper-local, the exact strategy you should use depends entirely on your specific neighborhood.
Want to know what kind of concessions and incentives are standard in our local market right now? Let’s connect and map out your strategy.
