Hidden Opportunity for Buyers Right Now: Incentives and Seller Concessions

In areas where housing inventory is rising, both sellers and builders are offering various incentives to attract buyers. Sometimes, they even cover unexpected buyer expenses—commonly referred to in the industry as incentives or seller concessions.

What Are Incentives and Seller Concessions?

Incentives are benefits offered by the seller or builder to ease the financial burden on the buyer. Specifically:

• A concession is something a seller gives up or offers to help move negotiations forward.

• An incentive is a pre-advertised benefit aimed at catching buyer interest.

Common incentives include:• Partial coverage of closing costs• Temporary mortgage rate buy-downs• Price discounts• Free appliances or home upgrades• Home warranties• Minor repair assistance

According to the National Association of Realtors (NAR), these offers can significantly help with upfront costs—especially important for budget-conscious buyers.

Builders Are Offering More Than Ever

To sell off unsold inventory quickly, builders are aggressively using incentives. Market research firm Zonda reports that as of March:

• 56% of new homes

• and 74% of quick move-in homes are offering incentives.

  
  

  

  
  

  Roughly 30% of builders are even reducing prices to close deals.

This isn’t a warning sign—it’s a window of opportunity for buyers to negotiate. If you're exploring new construction, now is a great time to speak with builders.

Existing Home Sellers Are Joining In

The trend isn’t limited to new homes. With more listings on the market, competition among sellers has increased. In March, 44% of existing home listings included a concession.This shift marks a return to pre-pandemic market dynamics, creating a more balanced environment that benefits both buyers and sellers.

Keep in mind: concessions don’t always mean cutting the price. They could include covering part of the buyer’s closing costs, including appliances, or paying for repairs.And given that home prices have risen over 57% nationally in the past 5 years, sellers can still profit even after offering some concessions.

In Summary

Whether you’re eyeing a new build or a resale home, today’s market offers buyers meaningful advantages. If you're concerned about closing costs or high interest rates, now is the time to act.

What kind of incentive would help you most right now?To find out what's realistically available in your area based on local competition and inventory, reach out today.

Hans Han | Chicago BDB

📞 773-717-2227 | 📧 ChicagoBDB@gmail.com