Concessions and Incentives: What Today’s Buyers Need to Know

In markets where inventory is rising, both homebuilders and sellers are offering buyers more incentives than we’ve seen in recent years. These benefits—known in the industry as concessions or incentives—are aimed at helping deals move forward in a more competitive landscape.

What Are Concessions and Incentives?

Concessions are compromises sellers agree to during negotiations—such as covering part of a buyer’s closing costs—to help seal the deal.
Incentives are typically offered up front by sellers or builders to attract buyers. These are advertised perks meant to stand out in a crowded market.

Common examples include:

• Contributions toward closing costs

• Mortgage rate buy-downs

• Price reductions or discounts

• Appliance packages or home upgrades

• Prepaid home warranties

• Minor repairs

For buyers, these offerings can make a real difference, especially when managing a tight budget. As the National Association of Realtors puts it, these benefits can help ease the upfront cost of homeownership.

New Construction: Builders Are Offering More

Builders, in particular, are actively offering incentives to avoid sitting on unsold inventory. According to Zonda, incentives were offered on:

• 56% of to-be-built homes

• 74% of quick move-in homes (available in under 90 days)

Beyond perks, many builders are also adjusting pricing. Data from the National Association of Home Builders (NAHB) shows around 30% of builders reduced prices each month in the first quarter of the year.

This reflects a willingness to negotiate—not market weakness. It’s a signal that builders are motivated to make a deal.

Resale Market: Sellers Are Stepping Up

Existing home sellers are also responding to increased competition. In March, 44% of sellers offered concessions to buyers—whether in the form of price adjustments, paid closing costs, or included repairs and appliances.

While we’re not seeing steep discounts across the board, we are seeing the market normalize after years of seller dominance. Small concessions help listings stand out and still allow sellers to walk away with strong profits—especially considering home values have climbed over 57% in the last five years.

What This Means for Buyers

Buyers today have more negotiating power than they’ve had in recent memory. Whether you’re looking at new construction or a resale, incentives are on the table—and they can make a meaningful impact on your bottom line.

If you’re ready to buy, let’s talk about what’s realistic in your price point and local market. The Laura Smith Real Estate Team is here to help you navigate every step—from strategy to closing.

Let’s connect and find out what kind of deal is possible for you.