Negotiation Strategy

What Are Real Estate Concessions — and When Should You Ask?

Concessions can save you thousands at closing or help a deal get done. Here's exactly how they work for both buyers and sellers.

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Negotiation Guide

Concessions 101

A real estate concession is when one party agrees to give something of value to make a deal work. They're one of the most powerful and underused negotiating tools in real estate — and most buyers and sellers don't fully understand how to use them effectively.

Seller Concessions

  • Paying a portion of the buyer's closing costs
  • Covering repair costs found in inspection
  • Including appliances or furniture in the sale
  • Providing a 1-year home warranty
  • Reducing price in lieu of making repairs
  • Paying for a rate buydown to lower buyer's payment

Buyer Concessions

  • Offering a flexible or seller-preferred closing date
  • Agreeing to a rent-back period for the seller
  • Waiving minor repair requests after inspection
  • Removing contingencies to simplify the deal
  • Increasing earnest money to show strong commitment
  • Accepting the home as-is cosmetically

When Do Concessions Make Sense?

In a buyer's market, sellers often need to offer concessions to attract offers. In a seller's market, buyers use non-price concessions to win competitive situations. The key is knowing what the other party values most — and that requires local market knowledge and negotiating experience.

We negotiate concessions on behalf of our clients every week. Knowing when and how to ask — or offer — can be the difference between a deal that closes and one that falls apart.

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