Keys With Victor

AUGUST 2025 #5

What Are Seller Concessions And Why Are They Trending?

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.