Homebuyer Concessions and Incentives: How to Save on Closing Costs, Rates & More

In many markets today, inventory is rising. Because of this, builders and sellers are offering more to attract buyers. These offers are called concessions or incentives—and they can save you money.

💡 Concessions vs. Incentives: What’s the Difference?

Although the terms are often used interchangeably, they have different meanings.

• A concession is something a seller gives up to reach a deal.

• An incentive is a benefit offered upfront to attract interest.

In today’s market, some of the most common include:

• Help with closing costs

• Mortgage rate buy-downs

• Price discounts

• Appliance packages or upgrades

• Home warranties

• Minor repairs

These extras help reduce your upfront expenses. As the National Association of Realtors (NAR) puts it:

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

🏗️ Builders Are Offering More

Because homes are taking longer to sell, many builders are increasing incentives.  As Zonda says:

• 56% of to-be-built homes included incentives

• 74% of quick move-in homes offered them too

Although most aren’t cutting prices, many are open to negotiation. So, if you’re buying new construction, there’s a good chance you’ll get something extra.

🏘️ Resale Home Sellers Are Also Offering More

It’s not just builders. More existing homes are hitting the market. Because of this, competition among sellers has increased.

In March, 44% of existing-home sellers offered concessions. That number brings us back to pre-pandemic trends, showing the market is balancing again.

But concessions aren’t always about price. Often, sellers offer help with closing costs, handle repairs, or leave behind appliances. These extras can still add real value.

And with home prices up more than 57% over the last five years, sellers can still profit—while making the deal more appealing for buyers.

✅ Bottom Line

Whether you’re buying a new home or an older one, concessions and incentives can make a difference. They lower costs and give you more flexibility.

What would help you most? A lower interest rate? Covered closing costs? A move-in-ready kitchen?

Let’s connect to find out how I can help you find your perfect home with the best deal possible.