AUGUST 2025 #5
You may have noticed the word concessions popping up more often in real estate over the past year. But what exactly are seller concessions-and why are we seeing them more now?
In real estate, seller concessions are a tool used to make a listing more attractive to potential buyers. They can be negotiated before or during the escrow period and applied in several ways, such as:
💰Covering some or all of the buyer's closing costs
🛠️ Helping with necessary repairs
💸 Buying down the buyer's mortgage interest rate
🏡 Providing a home warranty for the buyer
These incentives can make a big difference in helping a deal move forward, especially in today's market.
So why are we seeing more seller concessions now? If you recall from our July Keys, we saw about 37% more listings and a 3% decrease in closings across Los Angeles, Orange, and Riverside Counties. With more competition and fewer sales, offering concessions can make a property stand out-giving buyers added flexibility to use the funds in a way that benefits them most.
In short, seller concessions are becoming a strategic tool to bridge the gap between buyers and sellers in a shifting market.
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