The "Take It or Leave It" Mentality Is Disappearing in Today's Housing Market

Negotiation is making a comeback. Buyers are finding more opportunities to negotiate, sellers are becoming more willing to make concessions, and builders are sweetening the deal with added incentives.

Whether you're buying or selling in today's market, you'll likely hear two terms come up often: concessions and incentives.

• A concession is something a seller agrees to provide during negotiations to help move a transaction forward.
• An incentive is a benefit offered upfront by a builder or sometimes a seller to make a property more appealing and encourage buyers to act.

Here's what you should know about both—and how they could help you, whether you're buying or selling in today's market.

More Sellers Are Offering Concessions

According to Redfin, nearly half (46%) of homeowners who recently sold their homes offered a concession to help close the deal—the highest share recorded for this time of year. Even more telling, about 1 in 7 sellers (16%) not only reduced their asking price but also included a concession to make their home even more attractive to buyers (see chart below).

What types of concessions are sellers offering in today's market?

A seller may agree to cover part of your closing costs, pay for certain repairs, or offer a credit to help reduce your upfront expenses. These concessions can make a transaction more appealing and help keep a deal together in a market where buyers have more choices. And it's not just individual homeowners offering these benefits—builders are doing the same.

Builders Are Cutting Prices, Too

The new construction market is experiencing a similar shift. According to the National Association of Home Builders (NAHB), 62% of builders are currently offering incentives to attract buyers, while 35% have reduced prices to stay competitive (see chart below).

Common builder incentives include:

• Price reductions
• Mortgage rate buydowns to help lower monthly payments
• Complimentary upgrades, such as premium finishes, upgraded flooring, or new appliances

According to Danielle Hale, Chief Economist at Realtor.com, builders are adjusting to changing market conditions.

While new construction has remained one of the strongest segments of the housing market in recent years, affordability challenges and a growing supply of existing homes have led many builders to become more competitive by offering incentives and pricing adjustments.

Even builders, who are often viewed as less willing to negotiate have been offering price reductions and attractive incentives to win over buyers. In fact, this trend has continued for more than a year. The latest data shows this marks the 15th consecutive month that more than 60% of builders have offered incentives, highlighting just how competitive the new construction market has become.

How This Impacts Your Next Move

If you’re buying a home, this is a great time to negotiate. Whether you're considering an existing home or new construction, sellers and builders are more willing than they have been in recent years to negotiate on price, offer concessions, or provide incentives that can help lower your overall costs.

If you’re selling, be prepared for buyers to negotiate. With even many builders of brand-new homes offering concessions and incentives, today's buyers have more options and greater negotiating power. Being flexible on price or terms could be the difference between closing the sale quickly and watching your home sit on the market longer.

Bottom Line

Today's housing market offers more opportunities for buyers than it has in recent years. Sellers and builders are increasingly willing to negotiate through concessions, price adjustments, and other incentives to help get deals across the finish line.

Whether you're buying or selling, working with a local real estate expert can help you understand what's typical in your market and negotiate the best possible outcome based on current inventory and competition.