U.S. home sellers are ready to make a deal. Property owners offered buyers concessions at near-record rates in the first quarter of 2025, amid declining demand. With mortgage rates in the high 6% range, applications for mortgages decreased almost 13% in the week ending April 18, nudging sellers to create incentives to buy.¹

Sweetening the deal

Some 44.4% of sellers gave buyers concessions, just shy of the record-high 45.1% at the start of 2023, according to Redfin.² Seller concessions are recorded when an agent reports a seller provided something that helped reduce the buyer's total cost of purchasing the home, such as money toward repairs, closing costs, and/or mortgage-rate buydowns.

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Though homebuyers are facing high home prices, increased mortgage rates, and economic uncertainty, those in the market have more options to choose from — and more negotiating power. Active home listings entered 2025 at a five-year high, and in March, the inventory of newly built homes climbed to its highest point since 2009, according to U.S. Census Bureau data.^3,4

Bargaining chips

More than half of Americans equate owning a home with financial success, according to Empower research. Now, buyers are getting increasingly savvy when it comes to affording their dream home, particularly first-time buyers: Redfin reports that today’s concessions expand far beyond repairs, with buyers negotiating for mortgage-rate buydowns and even months’ worth of homeowners’ association (HOA) fees.⁵

The negotiation can help sellers too, allowing them to get to closing without lowering their sale price. Buyers in some parts of the U.S. are seeing increased flexibility from motivated sellers, with some throwing in personal items, from pianos to patio furniture, to get sales done.

Follow the money

Buyers who set their sights on a new city may find their money goes further in some metro areas thanks to such concessions. In Seattle, 71% of sellers are giving concessions — the highest rate among the metros Redfin analyzed and nearly double the share from a year ago. After Seattle, the states with the greatest increase in seller concessions in Q1 2025 vs Q1 2024 were Portland, Oregon; Atlanta, San Diego, and Denver. New York saw the biggest drop in concessions (5.5% vs 15.7%), followed by Miami (to 33.8% vs 46.9%) and San Antonio, Texas (44.4% vs 55.3%).⁶

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How do seller concessions work in practice?

Some of the most common seller concessions include:⁷

• Closing costs, including title insurance, appraisal costs, and lender fees
• Repairs and inspection fees
• Mortgage rate buydown through mortgage discount points
• Homeowners insurance premiums or HOA fees
• Home warranty
• Moving expenses

There are limits on how much a seller can offer a buyer when closing a deal. The total value of concessions is typically limited to a percentage of the home's sale price or appraisal value, whichever is lower. The maximum seller concessions depend on the type of loan:⁸