What are the most and least common instances of concessions in the housing market, according to Redfin?
If you’re a home buyer, this is actually encouraging news.
According to Redfin, seller concessions are becoming increasingly common as many markets shift in favor of buyers. A concession is anything a seller offers to help reduce a buyer’s costs, such as covering closing costs, paying for repairs, or helping buy down a mortgage rate.
The most common instances of concessions are found in major Sun Belt markets where buyers have more negotiating power. Redfin found that concessions were especially prevalent in:
- Atlanta (the highest share of concessions)
- Charlotte
- Phoenix
- Las Vegas
- Raleigh
- Nashville
- Houston
- Denver
- Riverside, California
- Virginia Beach
These markets tend to have more homes for sale relative to buyer demand, which encourages sellers to offer incentives to help close deals.
On the other hand, the least common instances of concessions are found in stronger housing markets where sellers still hold more leverage. Redfin specifically highlighted the San Francisco Bay Area and New York as places where concessions are far less common.
For buyers, the takeaway is simple: if you’re shopping in a buyer-friendly market, don’t be afraid to negotiate. Many sellers are willing to help with closing costs, repairs, mortgage-rate buydowns, or other incentives, and those concessions can save you thousands of dollars over the course of your home purchase.