US Homebuyers Get More Seller Perks Than NYC Buyers
In August, 44.7% of U.S. home sales included seller concessions—cash for repairs, closing costs, or mortgage‑rate buydowns—up from 42.6% a year earlier. New York City buyers, however, saw only 5.7% of sales with concessions, the lowest among major metros. The surge reflects a buyer‑favorable market…
By Felo News Desk · Published
In August, a record‑high 44.7% of U.S. home sales featured seller concessions, a jump from 42.6% a year earlier and the strongest buyer’s market Redfin has tracked since 2013. Concessions—cash toward repairs, closing costs or mortgage‑rate buydowns—are not price cuts, but they can make a purchase more affordable for buyers. Yet the same trend is not universal. In the New York metro area, only 5.7% of sales included any seller perk, the second‑lowest share among 29 major metros.
What Are Seller Concessions and Why Do They Matter?
Seller concessions are incentives that sellers offer to sweeten a deal. They can cover the cost of repairs, help pay for closing costs, or lower the effective mortgage rate through a buydown. These perks do not change the listing price but can reduce the buyer’s out‑of‑pocket expense. When inventory is high and buyers have many options, sellers are more willing to offer concessions to close a deal quickly.
National Surge in Concessions
Redfin’s analysis of 3,000+ transactions submitted by buyers’ agents shows that 15.8% of homes sold in August received both a price cut and a seller concession—the highest share in the data set. The trend is strongest in the Sun Belt, where pandemic‑era construction booms have left a surplus of inventory. Atlanta tops the list with concessions in 72.8% of transactions, followed by Charlotte (67.9%), Phoenix (67.4%), Las Vegas (66.7%) and Raleigh (66.3%). Nashville, Houston and Las Vegas now rank among the country’s five strongest buyer’s markets, with more than twice as many sellers as buyers.
New York City Stands Out
Unlike the Sun Belt, the New York metro remains a balanced market. Buyers and sellers are roughly equal in number, giving buyers less leverage to demand extras. Concession rates slipped 0.9 percentage points from a year earlier, falling to 5.7%—the second‑lowest among major metros. San Jose, California, is the only city with a lower rate at 4.2%. In contrast, San Francisco, Chicago and Philadelphia see concession rates of 18.6%, 21.9% and 25.5% respectively.
What This Means for Buyers and Sellers
For buyers, the data suggest that negotiating seller concessions is more likely in markets with high inventory and a buyer advantage. In places like Atlanta or Phoenix, buyers can expect to negotiate cash for repairs or closing costs in a majority of transactions. In NYC, however, buyers may need to focus on price reductions or other terms, as concessions are rare.
For sellers, the trend indicates that offering concessions can be a strategic move to attract buyers in a competitive market. In high‑inventory areas, sellers who provide incentives are more likely to close deals quickly. In balanced markets, sellers may need to rely on price competitiveness instead.
Overall, the surge in seller concessions reflects a shift in the national housing market toward buyer‑friendly conditions, driven by abundant inventory and changing demand dynamics. Buyers nationwide should be prepared to negotiate for perks, while sellers should weigh the benefits of offering concessions against the potential impact on their bottom line.
Next Steps for Homebuyers
Homebuyers looking to capitalize on concessions should work closely with a knowledgeable real‑estate agent who can identify markets with high concession rates and negotiate effectively. They should also consider the total cost of ownership, including repairs and closing costs, when evaluating a property. For those in NYC, focusing on price negotiations and exploring other incentives—such as seller-paid closing costs—may be more realistic.
Unresolved Questions
It remains unclear how long the current buyer advantage will persist, especially as inventory levels fluctuate and interest rates change. Buyers and sellers alike should stay informed about market trends and adjust their strategies accordingly.
“Buyers know they can be picky. They’re asking for every concession under the sun,” said Amanda Peterson, a Redfin Premier agent in Dallas, in the report.
“The perks are especially common in the Sun Belt, where pandemic‑era building booms have collided with softer demand.”
Key facts
- 44.7% of U.S. home sales in August featured seller concessions
- NYC buyers received concessions in only 5.7% of sales
- Sun Belt markets lead with concessions over 60%
- Concessions cover repairs, closing costs, or mortgage‑rate buydowns, not price cuts
- Buyers in high‑inventory markets have more negotiating power
Why it matters
Seller concessions can significantly reduce a buyer’s upfront costs, making homeownership more attainable. Understanding where concessions are common helps buyers and sellers strategize in a shifting market.
Frequently asked questions
What is a seller concession?
A financial incentive offered by the seller to help cover buyer costs, such as repairs, closing costs, or mortgage‑rate buydowns.
Does a concession reduce the sale price?
No, concessions do not lower the listing or final sale price.
Why are NYC buyers getting fewer concessions?
NYC remains a balanced market with equal numbers of buyers and sellers, limiting buyers’ negotiating leverage.
How can I negotiate a concession?
Work with a real‑estate agent who can identify markets with high concession rates and present a strong offer.
Will concessions become more common nationwide?
It depends on inventory levels and market dynamics; high inventory tends to increase concession rates.
Sources
- [1] nypost.com — originally reported as “Nearly half of US homebuyers are scoring seller perks — but NYC buyers are getting almost nothing”
