If you've been thinking about buying a home, now might be one of the most buyer-friendly times in recent memory. One big reason? Concessions. Also known as incentives, these perks can ease the financial burden of buying and help you land a better deal. Whether you're eyeing new construction or an existing home, there's a good chance sellers are more willing to sweeten the deal than they were just a few years ago.
Let’s explore what concessions are, why they matter right now, and how you can take full advantage of them in today’s housing market.
What Are Concessions and Incentives in Real Estate?
In the world of real estate, a concession is when a seller agrees to something that benefits the buyer—often to keep a deal from falling through. This might include covering part of your closing costs, agreeing to repairs, or offering you a discount.
On the other hand, an incentive is usually something a builder or seller advertises upfront to attract buyers. It could be a new appliance package, a mortgage rate buy-down, or an upgraded kitchen.
While they serve slightly different purposes, both concessions and incentives work to your advantage as a buyer.
Common concessions and incentives include:
Help with closing costs
Temporary mortgage rate buy-downs
Price reductions
Appliance packages or upgrades
Home warranties
Minor repairs covered by the seller
These aren’t just small perks. As the National Association of Realtors (NAR) puts it, "They can help reduce the upfront costs associated with purchasing a home."
Why Are More Sellers Offering Concessions Right Now?
One word: competition.
Housing inventory is growing in many parts of the country. That means buyers have more choices—and sellers know it. To stay competitive, they’re offering extras to make their properties stand out.
In fact, over 44% of sellers of existing homes gave concessions to buyers in March. That’s according to recent data, and it marks a shift back toward a more balanced market.
During the pandemic-fueled seller’s market, multiple offers and bidding wars were the norm. Buyers had little leverage. But today? The power is shifting.
This isn’t a downturn—it’s a normalization. And it’s opening doors for buyers who may have felt shut out in recent years.
Homebuilders Are Leading the Charge on Incentives
If you’re considering a brand-new home, you’re in luck. Builders across the country are offering a wide array of buyer incentives right now.
According to Zonda, a trusted real estate data firm:
“Incentives continued to be popular in March, offered by builders on 56% of to-be-built homes and 74% of quick move-in homes.”
That means three out of four ready-to-move-in new homes likely come with an incentive. Why? Builders don’t want unsold inventory sitting on the books. Offering incentives is a strategic move to keep homes moving and buyers interested.
And these aren't just token gestures. Incentives might include a few thousand dollars toward your closing costs, help buying down your mortgage rate, or a package of luxury upgrades that would otherwise cost extra.
According to the National Association of Home Builders (NAHB), around 30% of builders lowered prices in each of the first four months this year. While not all builders are slashing prices, a significant number are clearly willing to negotiate.
That tells you one thing: Builders want to make deals.
How Existing Home Sellers Are Stepping Up
It’s not just new homes where buyers are gaining ground. Sellers of existing homes are also becoming more flexible.
As more resale homes hit the market, competition increases. This has led to nearly half of sellers in March agreeing to some form of buyer concession. That might be helping cover your closing costs, paying for needed repairs, or including appliances in the sale.
In previous years, you might have had to waive inspections or offer well above asking price just to stay in the game. Now, the tables are turning.
Even though prices haven’t dropped dramatically, sellers are realizing that offering a few concessions is a great way to close a deal faster—especially when homes aren’t flying off the shelves like they used to.
What This Means for You as a Buyer
For today’s buyers, this is great news.
When sellers are more willing to negotiate, you can end up with a better overall value, even if home prices haven’t fallen dramatically. A seller-paid closing cost, for example, can save you thousands out of pocket. A temporary mortgage rate buy-down can make your monthly payments more manageable, especially during your first few years in the home.
Let’s break down how some of these concessions can help:
1. Closing Cost Assistance
Closing costs can range from 2% to 5% of the home price. On a $400,000 home, that’s up to $20,000. If the seller covers some or all of that, you keep more cash in your pocket.
2. Mortgage Rate Buy-Downs
This concession temporarily lowers your interest rate. A lower rate means lower monthly payments—a huge benefit in the first couple of years when you may be adjusting to homeownership costs.
3. Home Upgrades and Repairs
Sellers may agree to make minor repairs or even throw in upgrades like new flooring, appliances, or smart home tech. These add value and convenience without increasing your initial cost.
4. Price Reductions
While price cuts aren’t always offered, they do happen. Even a 1-2% discount can make a significant difference in both your upfront and long-term costs.
Don’t Miss This Window of Opportunity
The current market offers a unique window of opportunity for buyers. With more listings available and sellers actively offering deals, it's an ideal time to explore your options.
While nobody can predict exactly how long this trend will last, market conditions are favoring buyers more than they have in years. And if you act now, you can take advantage of concessions and incentives before the landscape shifts again.
Tips for Getting the Best Deal as a Buyer
Want to make the most of today’s market? Here’s how:
Work with an experienced real estate agent. They’ll know how to spot opportunities and negotiate on your behalf.
Get pre-approved for a mortgage. This strengthens your position and makes you a more attractive buyer.
Ask about incentives. Don’t assume they’ll be offered automatically. Always ask what the seller or builder is willing to include.
Be flexible. If you’re open to different move-in dates or home types, you might unlock even better deals.
Consult with a mortgage expert. Understanding your financing options, including how a rate buy-down works, is key to maximizing value.
Bottom Line: Use Concessions To Your Advantage
Whether you’re buying a new build or an existing home, the chances are high that the seller is open to offering concessions. From covering closing costs to rate buy-downs and more, these incentives can make homeownership more affordable and accessible.
At Best Option Mortgage, we specialize in helping homebuyers navigate this kind of market. Our team can work closely with your real estate agent to ensure you’re getting the best deal possible—and the right mortgage solution to match.
Ready to explore your buying power?
Let’s talk about how we can help you secure a mortgage with built-in savings. Contact Best Option Mortgage today and let’s put those concessions to work for you.
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Best Option Mortgage is a DBA of ML Mortgage Corp. ML Mortgage Corp. is a state-licensed mortgage lender, NMLS ID #362312, licensed by the CA Department of Financial Protection and Innovation under the Finance Lenders Law, License #60DBO69831. For other states, visit www.mlmortgage.net. To verify licenses, visit www.nmlsconsumeraccess.org. All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2025 ML Mortgage Corp. All rights reserved.