Home sellers across the US are increasingly offering incentives to attract buyers as the housing market continues to shift toward house hunters.
Sellers are covering closing costs and repair bills, offering mortgage-rate buydowns and even including appliances as they compete to move properties.
Redfin data shows that 44.7 percent of US homebuyers received concessions from sellers in August. That was up from 42.6 percent a year earlier and marked the highest share recorded for the month since at least 2020.
The figures highlight the markets where buyers may have the greatest negotiating power. Eight of the 10 cities with the highest rates of seller concessions are located in the Sun Belt.
Atlanta ranked first nationwide, with sellers offering concessions in 72.8 percent of home sales in August. In other words, nearly three out of every four transactions included an extra incentive.
Charlotte, North Carolina, was second at 67.9 percent, followed closely by Phoenix at 67.4 percent.
Las Vegas ranked next, with concessions included in 66.7 percent of sales, while Raleigh, North Carolina, recorded a rate of 66.3 percent.
Nashville, Tennessee, placed sixth at 63.1 percent. Houston and Denver followed at nearly identical levels, with rates of 58.5 percent and 58.4 percent respectively.
Atlanta ranked first nationwide, with sellers offering concessions in 72.8 percent of August home sales—meaning nearly three out of four deals included an extra incentive
Riverside, California, followed at 58 percent, while Virginia Beach, Virginia, recorded concessions in 57.7 percent of home sales.
Seller concessions can cover closing costs, repairs or mortgage-rate buydowns. They are separate from a straightforward reduction in the property’s asking price.
Amanda Peterson, a Redfin real estate agent in Dallas, said buyers are making more demands because they recognize they have a wide selection of homes to choose from.
She said builders, particularly those selling new homes, are offering concessions of $10,000 or $20,000, mortgage-rate buydowns and appliances to win over buyers.
‘Buyers know they can be picky. They’re asking for every concession under the sun,’ she explained.
‘I had clients walk away from a home they loved because the pantry was too small and they didn’t like the laundry room – even after the sellers offered to alter the floor plan. There are so many homes for sale that buyers are holding out for one that checks every box.’
The shift is particularly clear across the Sun Belt, where builders increased construction during the pandemic as Americans moved toward warmer states and smaller cities.
However, demand has cooled in many of those markets, giving buyers more properties to consider and forcing sellers to compete more aggressively for their business.
Nashville, Houston and Las Vegas are among the five strongest buyer’s markets in the country, with the number of sellers more than double the number of buyers.
Charlotte, North Carolina, pictured, ranked second at 67.9 percent
Phoenix, Arizona, pictured, recorded a concession rate of 67.4 percent.
Across the US, 15.8 percent of homes that sold in August had both a price cut and a seller concession, meaning buyers were getting two different forms of savings.
Meanwhile, 59.5 percent of homes sold for less than their original asking price in August, according to separate Redfin data.
In West Palm Beach, Florida, 85 percent of homes sold below asking, followed by Miami at 83 percent and Austin and San Antonio at 82 percent each.
The picture is very different in some major markets, however, with concessions given in just 4.2 percent of San Jose sales, 5.7 percent of New York sales and 18.6 percent of San Francisco sales.
San Francisco is also one of only five US housing markets currently classed as a seller’s market, meaning there are more buyers than homes for sale, with the city’s booming AI industry helping drive demand from wealthy buyers.
Redfin said stronger demand and fewer excess listings in these markets leave buyers with less leverage to demand extras from sellers.
For house hunters in the cities where concessions are widespread, the data suggests it may be worth negotiating over the entire deal rather than focusing solely on the sticker price.
With mortgage rates still elevated and the median US home price at $398,596 in August, even a seller contribution toward closing costs or a rate buydown could make a meaningful difference to a buyer’s upfront or monthly costs.
