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With mortgage rates elevated and economic uncertainty hanging in the air, homebuyer demand has taken a hit. But sellers are getting creative by offering concessions at near-record levels, according to data issued Monday by Redfin.
In the first quarter of 2025, a whopping 44.4 percent of homesellers offered concessions, short of a record 45.1 percent at the start of 2023, data shows. The concessions range from covering repairs to helping buyers with mortgage-rate buydowns — financial reprieves that can make a difference for first-time buyers.
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“Buyers used to ask for concessions to cover little things like repairs,” Redfin agent Chaley McVay said. “Now they’re negotiating concessions so they can afford to buy a home. A lot of sellers are offering money for mortgage-rate buydowns, and I had one seller cover seven months of HOA fees for the buyer.”
Data submitted by Redfin buyers’ agents
The rise in concessions isn’t merely about cautious buyers; it’s also a result of growing competition among sellers. Housing supply hit a five-year high in the first quarter, and with more inventory on the market, sellers are rushing to stand out without lowering listing prices. That’s where concessions come in.
Redfin’s data suggests that many of those homes are lingering unsold because they are overpriced. Instead of cutting the listing price outright, some sellers are using concessions to sweeten the deal, while protecting their asking price.
“Sellers are feeling nervous because a lot of them bought at the top of the market in 2021 and 2022, and will now be re-buying at a higher mortgage rate,” McVay added. “They’re worried about net proceeds. That’s why I recommend my buyers ask for concessions instead of a lower sale price—it can be a win-win because then the buyer is catching a break and the seller doesn’t have to go below the price they had in their head.”
This strategy has been especially prevalent in Seattle and Portland. In Seattle, concessions were offered in 71.3 percent of transactions in Q1, nearly double the 36.4 percent seen the year before. After those two cities, the highest concession rates were found in Atlanta, San Diego and Denver.
Closed Redfin deals in metros with at least 50 closed deals during the first quarter
Stephanie Kastner | Redfin Premier agent in Seattle
“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,” Stephanie Kastner, a Redfin Premier real estate agent in Seattle, said. “Condos have become a tougher sell because of skyrocketing HOA fees and insurance. And builders are offering concessions because it’s in their best interest to keep sale prices high; they’re willing to pay buyers’ closing costs and maybe provide a free washer-dryer if it means they don’t have to drop the listing price.”
On the other hand, some areas saw a sharp drop in concessions. New York had the lowest share in Q1, with just 5.5 percent of home sales including concessions — down nearly 16 percent in percentage points from the previous year. Miami (-13.1 ppts to 33.8 percent), San Antonio (-10.9 ppts to 44.4 percent), Tampa, Florida (-9.2 ppts to 33.9 percent) and Phoenix (-3.5 ppts to 51.2 percent) also saw noticeable declines.
Meanwhile, some sellers are deploying a combination of strategies. In the first quarter, aproximately 21.5 percent of homes sold below asking price and included a concession. About 16 percent of sales involved both a price cut and a concession, while 9.9 percent included a concession, price cut and a final sales price below the original listing price.
Still, not all buyers are biting. Economic uncertainty continues to loom, and many are walking away from deals.
Redfin reports that 13 percent of pending home sales were canceled in March, marking the third-highest March cancellation rate on record since 2017, behind only March 2020 during the early days of the pandemic.
