Sellers Are Sweetening Deals as Buyer Power Grows

Home sellers gave concessions to buyers in 44.4% of U.S. home-sale transactions in the first quarter of 2025. That’s an increase from 39.3% this time last year and just below the 45.1% peak seen in early 2023. More sellers are offering concessions as market conditions shift to favor buyers.

What’s behind this shift? For one, housing inventory has surged to a five-year high, giving buyers more options. Combine that with elevated mortgage rates and rising home prices, and it’s easy to see why buyers are hesitant—and why sellers are doing more to close the deal.

A concession might include money toward repairs, closing costs, or mortgage-rate buydowns. Redfin notes that these do not include list price reductions, but rather costs that help reduce the buyer’s total out-of-pocket expenses.

Buyer Uncertainty Is Driving Market Dynamics

With the economy showing signs of strain, 13% of pending home sales were canceled in March. That means roughly 52,000 home-purchase agreements were scrapped—up slightly from the same time last year and one of the highest cancellation rates since 2017.

Buyers aren’t just looking for cosmetic concessions anymore. “Buyers used to ask for concessions to cover little things like repairs. Now they’re negotiating concessions so they can afford to buy a home,” said Chaley McVay, a Redfin Premier real estate agent. From mortgage-rate buydowns to covering HOA fees, sellers are finding creative ways to meet buyer needs without drastically slashing listing prices.

Which Markets Are Leading the Concession Surge?

Seattle tops the charts: 71.3% of home sales in Q1 involved seller concessions—nearly double the 36.4% share from the same time last year. Portland wasn’t far behind at 63.9%, up 14.2 percentage points. These metros are seeing more competition and overpriced listings, prompting sellers to negotiate harder.

“It’s super common to see seller concessions for condos and new-construction townhomes, but less so for single-family homes—unless the single-family home has been sitting on the market for a while,” said Stephanie Kastner, a Redfin agent in Seattle.

Other high-concession metros include Los Angeles (56.1%), Atlanta (61.5%), San Diego (60.7%), and Denver (59.2%). Meanwhile, markets like New York, Miami, and San Antonio saw a notable drop in concession rates, largely because sellers are pricing more realistically from the start.

Concessions Aren’t Always Enough—Some Sellers Are Also Cutting Prices

In a growing number of cases, sellers are not just offering concession—they’re also reducing prices or accepting offers below asking.

Roughly one in five homes (21.5%) that sold in Q1 had a final sale price below the asking price and a concession. And about 1 in 10 (9.9%) involved a trifecta: a price cut, a concession, and a sale below the list price.

This signals a shift in how sellers approach pricing strategy. When homes linger on the market, multiple incentives become the key to getting a deal across the finish line.

What This Means for Buyers and Sellers in Orange County

Even though Orange County wasn’t explicitly listed among the top or bottom concession markets, these national patterns reflect what we’re starting to see locally. Elevated home prices and increased inventory are giving buyers more leverage—and savvy sellers are adjusting their strategies accordingly.

If you're buying, it’s a good time to negotiate. If you're selling, offering targeted concessions can be the edge you need in a crowded market. At Whitestone Real Estate, we’re constantly tracking the data to help you navigate the best deal—whether you’re listing a coastal gem or shopping for your dream home in South OC.

Bottomline

With concessions near record highs, the 2025 housing market is giving buyers more power—and sellers more incentive to adapt. In Orange County’s ever-evolving real estate scene, understanding these shifts can make or break your next move. If you're thinking about buying or selling in this dynamic environment, I’m here to help you maximize every opportunity. Let’s chat about how to make your real estate goals a reality—on your terms.

Reference: Katz, L. (2025, April 21). 44% of Home Sellers Are Giving Concessions to Buyers—Just Shy of the Highest Level on Record. Redfin.