In today’s changing real estate market, one trend is becoming increasingly clear — more sellers and homebuilders are offering enticing extras to help get deals done. These offerings, known as concessions or incentives, are making it easier and more affordable for many buyers to move forward with a home purchase.

Whether you’re considering a brand-new home or an existing property, understanding what these concessions are — and how they can benefit you — could be the key to unlocking your next move.

What Are Concessions and Incentives?

In real estate, concessions and incentives are terms used to describe perks or financial help that sellers and builders offer buyers to make a deal more attractive.

• A concession is a compromise. For example, a seller might agree to cover your closing costs, make certain repairs, or leave behind appliances to help close the deal.

• An incentive is a pre-advertised benefit — something the builder or seller promotes in advance to draw in buyers. This might include discounted upgrades, rate buy-downs, or warranties.

These extras can significantly reduce your upfront expenses or long-term costs. And in a time when buyers are juggling affordability concerns like elevated mortgage rates and rising prices, they can be a game changer.

According to the National Association of Realtors (NAR):

“. . . they can help reduce the upfront costs associated with purchasing a home.”

Let’s take a closer look at how builders and sellers are using these strategies right now.

Builders Are Stepping Up Their Offers

Homebuilders are among the most active in offering buyer incentives — and it’s not hard to understand why. Builders often work with strict timelines, and unsold homes sitting on the market can hurt their bottom line.

As a result, many are making it easier for buyers to move in quickly and affordably.

Research from Zonda shows that:

These offerings range from closing cost assistance and interest rate buy-downs to free upgrades and price reductions. And some builders are even willing to negotiate further — especially if they need to offload inventory fast.

According to the National Association of Home Builders (NAHB), around 30% of builders lowered prices in each of the first four months of this year. While most builders are still holding steady on price, this data shows some flexibility and a willingness to work with buyers to make deals happen.

What does this mean for you? If you’re considering new construction, now may be the ideal time to explore your options and see what incentives might be available.

Existing Home Sellers Are Offering More, Too

It’s not just homebuilders adjusting their strategies. Homeowners listing their previously lived-in homes are also stepping up to meet buyers halfway.

With inventory increasing in many markets, today’s sellers are facing more competition. To stand out, many are making concessions to keep buyers interested and close the deal.

In March, over 44% of existing home sellers provided concessions to buyers. Whether it was covering closing costs, including home warranties, or offering repair credits, many sellers are more open than before to helping buyers afford their new homes.

This level of seller generosity is actually a return to more pre-pandemic norms, when buyers and sellers had a more balanced relationship. In recent years, sellers had the upper hand — often fielding multiple offers with little need to compromise. But now, the landscape is changing in buyers’ favor.

Keep in mind: Concessions from sellers aren’t always about slashing prices. Sometimes, it’s the small things — like agreeing to leave behind a washer and dryer or repairing an aging roof — that make a home more attractive.

And from the seller’s perspective, this still makes sense financially. Home prices have appreciated significantly in the past five years — over 57% nationwide, according to housing data. That kind of equity gives sellers room to negotiate without losing out.

Why This Matters for Buyers

For many homebuyers, especially first-time buyers or those with tight budgets, the possibility of concessions or incentives can be the difference between waiting and moving forward confidently.

Let’s say you’re looking at a $400,000 home and the seller offers:

• $10,000 toward closing costs

• A mortgage rate buy-down that saves you $200/month for the first two years

• And includes key appliances

These aren’t small details — they could save you thousands upfront and in your first years as a homeowner.

Even if the purchase price stays the same, the overall affordability of the home improves when sellers or builders offer perks like these.

That’s why it’s so important to work with a real estate agent who understands the local market and knows where and how to find these opportunities. They can help you determine:

• Which builders are offering incentives in your area

• Whether sellers are open to negotiation

• What strategies are working for other buyers in similar price ranges

Bottom Line

In a market where affordability matters more than ever, concessions and incentives are making a noticeable difference for buyers.

Whether you’re considering a new construction home or something more established, these added benefits can help lower your costs, ease your transition, and make your purchase more comfortable financially.

If you’re house hunting this season, now’s a great time to talk with a local real estate professional. They’ll help you spot opportunities where incentives might be available and guide you through negotiating the best deal possible.

What concession would make the biggest difference in your homebuying journey? Let’s talk about it and see what’s available near you.