As the housing market moves into its traditionally slower season, sellers may find that even the most enthusiastic buyers hesitate to commit. If your home is priced right and mortgage rates are easing, but potential buyers still can’t decide, it might be time to consider offering concessions to sweeten the deal.
Concessions can make all the difference—especially in a competitive market—and don’t have to be extravagant. Here’s a breakdown of practical incentives and strategies that can help sellers turn a hesitant buyer into a committed homeowner.
Financial Incentives Buyers Will Appreciate
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Rate Buy-Downs: One of the most impactful ways to attract buyers is by offering to reduce their mortgage rate. Sellers can cover the cost of lowering the buyer’s rate for the first year or two.
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For around 1% of the sale price, you can cut the buyer’s rate by 0.25% for the first year. Paying more can extend the rate reduction further.
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Builders are already leveraging this strategy, with some offering rates as low as 4%.
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Assumable Mortgages: If you have a low-interest mortgage, check if it’s assumable. FHA- and VA-backed loans are often transferable, and advertising this feature can make your property particularly attractive in today’s higher-rate environment.
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Closing Cost Credits: Covering part or all of the buyer’s closing costs—which typically range from 5% to 7% of the sale price—can ease their financial burden and encourage them to act.
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HOA Fee Coverage: If your home is part of a homeowner’s association, offering to pay the buyer’s HOA dues for the first year or more can provide meaningful relief, particularly for first-time buyers.
Property-Related Sweeteners
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Pre-Listing Inspections: Having your home inspected and addressing any issues before listing can reassure buyers. Additionally, offer to cover the cost of the buyer’s inspection to further build trust.
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Home Warranties: Most buyers expect a seller-paid one-year home warranty, but offering an additional year or two of coverage can set your property apart and provide extra peace of mind.
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Repairs and Upgrades: If the buyer’s inspection reveals issues, consider covering some or all of the repair costs. Taking care of these problems proactively can help move the deal forward.
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Include Desired Items: Sometimes, a buyer falls in love with specific items in your home. Be flexible about including furniture, appliances, or other desirable items in the sale.
Lifestyle and Logistical Concessions
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Cover Moving Costs: Offering to pay for some or all of the buyer’s moving expenses—which can run into the thousands—can make your home stand out.
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Flexible Timelines: Whether the buyer wants to close quickly or take their time, accommodating their preferred schedule can be a deciding factor.
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Agent Commissions: In today’s market, buyers often cover their agent’s commission. Offering to pay this fee on their behalf can be a significant gesture that sets your property apart.
The Bottom Line: Make It Easier for Buyers
In real estate, everything is negotiable. Offering meaningful concessions can make your home more attractive, help it stand out in a crowded market, and lead to a quicker, smoother sale. Whether it’s financial assistance, property-related perks, or logistical help, any cost you can take off the buyer’s shoulders is a step toward closing the deal.
Want to learn more about how to position your home effectively in today’s market? Contact us for expert advice and personalized strategies to help you sell with confidence.
