In some areas where there are more homes on the market, both sellers and builders are offering extra perks to attract buyers—things like covering closing costs, buying down the mortgage rate, and other incentives. In real estate, we call these “concessions” or “incentives.”

 

When a seller or builder throws in something extra to help make the deal better for you—like covering some costs—that's what we call a concession or an incentive.

 

• A concession is when a seller a , grees to give something up or make a compromise to help close the deal.

• An incentive, on the other handis something a builder or seller offers upfront—kind of like a bonus—to catch a buyer’s attention and encourage them to make an offer.

These days, some of the most common ones you’ll see are:

 

• Help covering closing costs
• Temporary mortgage rate buy-downs to lower your monthly payment for a bit
• Price cuts or discounts
• Free upgrades or included appliances
• A home warranty for peace of mind
• Small repairs taken care of before you move in

For buyers, getting any of these extras can make a big difference—especially if you're trying to stick to a tight budget. Like the National Association of Realtors (NAR) puts it:

 

 

It’s not just one builder offering a few extras—lots of builders are using this strategy these days. As Zonda puts it:

 

 

The reason for that is they don’t want their inventory just sitting around—they want it sold. And according to the National Association of Home Builders (NAHB), one of the strategies a lot of builders are using to keep things moving is making price adjustments (check out the graph below):

 

 

About 30% of builders dropped their prices in the first four months of the year. While that doesn’t mean most builders are lowering prices, it does show that some are open to negotiating with buyers to close a deal.

 

This isn’t a sign that the market’s in trouble—it’s actually an opportunity for you. The fact that most builders are offering incentives and around 3 out of 10 are lowering prices means that if you're considering a newly built home, your builder will likely be willing to help make the deal easier for you.

 

More existing homes—ones that have been lived in before—are hitting the market too, so sellers are facing more competition. That’s why, in March, over 44% of sellers offered concessions to buyers (check out the graph below):

 

 

If you look at the graph and compare it to pre-pandemic years, you’ll see that 44% is actually pretty close to normal. After years of sellers having the upper hand, the market is starting to balance out again, and that’s something that can work in your favor as a buyer.

 

Just keep in mind, concessions don’t always mean a huge price cut. While more sellers are willing to compromise on price, that’s not always their go-to move. Sometimes it’s as simple as the seller covering repairs, leaving behind appliances, or helping with your closing costs.

 

Given that home values have gone up by more than 57% in the past 5 years, offering small concessions is a smart way for sellers to make their home more appealing to buyers while still turning a profit.

 

Whether you're eyeing a brand-new home or something a bit older, there's a good chance you can take advantage of concessions or incentives.

 

If a seller or builder offered you something extra, what would make the biggest difference for you to go ahead with the deal?

 

Let’s chat about it and see if it makes sense, considering the inventory and competition in our local market.