Nearly Half of Home Sellers Are Giving Concessions Right Now. Here's What to Ask For:

Buyers Have More Negotiating Power Right Now… Here's How to Use It

If you've been thinking about buying a home, there's some good news.

For the first time in several years, buyers are finding themselves with a little more negotiating power. According to Redfin, nearly 46% of sellers across the country offered some type of concession to buyers in May. That's the highest percentage they've ever recorded for the month of May.

So, what does that actually mean?

It means that even if a seller isn't willing to lower their asking price, they may still be willing to help make the purchase more affordable in other ways.

A seller concession is simply something the seller agrees to pay for or credit back to the buyer to help get the transaction across the finish line.

The most common concessions include repair credits, closing cost credits, and mortgage rate buydowns.

Repair credits allow the buyer to complete repairs after closing rather than having the seller do the work beforehand. Closing cost credits help reduce the amount of cash a buyer needs to bring to the closing table. A mortgage rate buydown is when the seller contributes toward lowering the buyer's interest rate, which can significantly reduce the monthly payment.

One thing many buyers don't realize is that these concessions are negotiated separately from the purchase price. A seller may be firm on price but still be willing to contribute toward closing costs or offer a repair credit. Sometimes that can provide more value than simply negotiating a lower purchase price.

So why are we seeing more concessions?

The answer is fairly simple. Buyers have more choices than they did over the past few years. Inventory has been increasing, homes are taking a little longer to sell, and sellers know they have to compete for qualified buyers.

That doesn't mean we've suddenly shifted into a buyer's market everywhere. Here in San Diego, well-priced homes are still selling relatively quickly. But buyers today generally have more room to negotiate than they did when almost every home was receiving multiple offers.

When it comes to negotiating concessions, every situation is different.

If coming up with cash at closing is your biggest concern, asking the seller to contribute toward your closing costs may be the best strategy.

If your monthly payment is stretching your budget, a mortgage rate buydown could save you more money than negotiating a slightly lower purchase price.

And if the home needs repairs, I often prefer negotiating a repair credit rather than having the seller complete the work. That gives you the opportunity to choose your own contractor and make sure the work is done the way you want it.

Depending on the home and the seller's situation, it's also possible to negotiate more than one concession.

One thing I've noticed recently is that many buyers assume they either have to pay full price or walk away. That's simply not the case.

Every seller has different priorities. Some want the highest possible price. Others are more focused on closing quickly, avoiding repairs, or moving on to their next home. Understanding what's important to the seller is often what leads to the strongest negotiation.

That's where having an experienced agent can make a real difference.

The bottom line is this: today's market isn't about trying to "win" against the seller. It's about putting together a deal that works for both sides.

If you're thinking about buying, don't assume the list price is the only thing that's negotiable. There may be opportunities to reduce your upfront costs, lower your monthly payment, or receive credits that make the purchase much more affordable.

Every property is different, and every negotiation is different. If you're considering buying a home and would like to know what might be possible in today's market, I'd be happy to walk through the options with you and help you build the strongest strategy.