This Market’s Giving Buyers the Upper Hand on Concessions

In markets where inventory is climbing, sellers and builders are doing more to attract buyers—think paid closing costs, mortgage rate buy-downs, and other money-saving perks. In real estate, these are known as concessions and incentives.

So, what’s the difference?

• A concession is when a seller agrees to give something up—like covering your closing costs—to help seal the deal.
• An incentive is a benefit offered upfront—like a rate buy-down or appliance package—to entice buyers from the start.

Today’s most common perks include:

• Help with closing costs
• Mortgage rate buy-downs
• Price reductions or discounts
• Free upgrades or new appliances
• Home warranties or minor repairs

For buyers, especially those watching their budget closely, these extras can make a huge difference. As the National Association of Realtors puts it:

“They can help reduce the upfront costs associated with purchasing a home.”

Builders Are Making It Easier To Buy

And it’s not just the occasional builder offering this. According to Zonda, 56% of to-be-built homes and 74% of quick move-ins had incentives in March alone. Why? Builders don’t want to hold onto inventory—they want to sell.

The National Association of Home Builders confirms it: more price cuts, more offers, and more chances for buyers to negotiate.

Builders Are Negotiating – and That’s Good News for Buyers Roughly 30% of homebuilders reduced prices in each of the first four months this year. That doesn’t mean everyone’s cutting prices—but it does show that many are open to negotiating to get deals done.

This isn’t a red flag for the market—it’s a green light for opportunity. With most builders offering incentives and nearly 1 in 3 adjusting prices, chances are your builder is ready to work with you to help you close.

Existing Home Sellers Are Getting Competitive, Too

It’s not just new construction. More existing homes (the ones previously lived in) are hitting the market—creating more competition for sellers. That’s why 44% of sellers gave concessions to buyers in March alone. Whether it’s help with closing costs, repairs, or price flexibility, today’s buyers have more room to negotiate—on both new and existing homes.

A More Balanced Market Means More Buyer Perks If you compare today’s data to the pre-pandemic years, that 44% concession rate isn’t unusual—it’s actually a return to a more typical market. After several years where sellers held all the leverage, things are starting to even out. And for buyers, that shift brings real advantages.

But let’s be clear: concessions don’t always mean a major price cut. While some sellers are open to negotiating on price, others are offering value in different ways—like covering repairs, including appliances, or helping with closing costs.

And with home values up over 57% in the past five years, many sellers have room to offer these extras while still walking away with a strong profit. That means today’s buyers can win more without sellers losing out.

Bottom Line

Whether you’re exploring a brand-new build or considering a previously lived-in home, chances are good you’ll find opportunities to benefit from concessions or incentives in today’s market. From price adjustments to help with closing costs, these extras can make a real impact—especially when every dollar counts.

So here’s the question: If a seller or builder were willing to offer you something additional, what would help you take the next step with confidence?

Let’s talk about what’s possible. Connect with a local agent to explore which incentives are realistic in your area based on current inventory levels and buyer demand. A smart strategy could help you unlock the best value in your next move.