In today’s evolving housing market, buyers are starting to see more than just new listings — they’re also seeing added value. As inventory increases in many areas, both homebuilders and homeowners are stepping up to make their properties more appealing. These added benefits, known in the real estate world as concessions or incentives, are becoming increasingly common and can provide meaningful financial relief for buyers.

What Are Concessions and Incentives?

A concession is when a seller agrees to a term or makes a compromise to help close a deal. An incentive, by contrast, is a benefit proactively offered by a builder or seller to attract potential buyers. Both can be incredibly helpful, especially for buyers navigating tight budgets. Some popular incentives and concessions include:

- Assistance with closing costs
- Temporary mortgage rate buy-downs
- Price discounts
- Home upgrades or included appliances
- Home warranties
- Minor home repairs

These perks can reduce upfront costs and make purchasing a home more achievable. The National Association of Realtors (NAR) notes:

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

Builders Are Helping Buyers Make the Move

The good news doesn’t stop with resale homes. Builders are also making it easier to purchase new construction. According to Zonda:

“Incentives continued to be popular in March, offered by builders on 56% of to-be-built homes and 74% of quick move-in (QMI) homes, which can likely be occupied within 90 days.”

This trend shows that builders are actively working to move their inventory and are open to negotiating with buyers. In fact, data from the National Association of Home Builders (NAHB) shows that about 30% of builders adjusted prices lower in each of the first four months of the year.

While most builders are holding firm on pricing, the fact that many are willing to negotiate or offer special incentives highlights a significant opportunity for today’s buyers. Builders understand that offering a financial break or an extra feature can make a big difference in helping buyers say yes to a new home.

Resale Sellers Are Offering More Too

In addition to new construction, existing home sellers are also stepping up. With more homes hitting the market, sellers are facing increased competition — giving buyers more leverage. In March, over 44% of sellers offered concessions to buyers, according to the latest data:

Interestingly, this percentage is in line with pre-pandemic levels, indicating a return to a more balanced market. That balance is good news for buyers, who now have more room to negotiate and benefit from added value in their home purchases.

Concessions don’t always come in the form of large discounts. Often, they include practical benefits like covering repairs, including appliances, or helping with closing costs — all of which can make a big difference without significantly cutting into the seller’s profits. And considering home values have increased by over 57% in the past five years, sellers still have plenty of equity to work with.

Bottom Line

Whether you’re considering a brand-new build or a charming existing home, now is a great time to explore what incentives and concessions may be available. The current market climate offers buyers more advantages than in recent years — and taking advantage of these opportunities can make your homeownership journey more affordable and successful.

If you’re curious about what concessions or incentives may be available in your area, or if you want help negotiating a great deal, reach out to Mike Panza and the team at Panza Home Group. They’re ready to guide you through the process and help you make the most of today’s market. For more info, contact the team here: https://panzarealestate.com/team/mike-panza