Seller Concessions: What They Are—and Why They Matter in Today’s Market
In today’s housing market, price isn’t the only negotiating tool. Across the country, more sellers are using concessions—incentives that reduce the buyer’s overall costs—to help their homes stand out without lowering the sale price.
According to Redfin, 44.4% of U.S. home-sale transactions in the first quarter of 2025 included seller concessions, up from 39.3% a year earlier and just shy of the record high reached in early 2023.
What Exactly Are Seller Concessions?
Seller concessions can take many forms, but they all share one goal: making the purchase more affordable for the buyer. Common examples include:
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Covering all or part of the buyer’s closing costs
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Offering credits for repairs instead of completing them before closing
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Paying for a mortgage-rate buydown to lower monthly payments
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Prepaying certain fees such as HOA dues
Unlike a price reduction, concessions allow sellers to keep their list price intact while still providing value to the buyer.
Why Concessions Are Rising Nationwide
Several factors are pushing concessions higher:
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Elevated mortgage rates have made monthly payments more expensive.
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High home prices are stretching budgets, especially for first-time buyers.
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Increased inventory means buyers have more choices and more negotiating power.
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Economic uncertainty has made buyers more cautious, with 13% of pending home sales canceled in March alone.
In some areas, the trend is especially pronounced. Seattle led the country in Q1, with over 71% of home sales including concessions. Portland followed at nearly 64%, with Los Angeles, Atlanta, San Diego, and Denver also posting high concession rates.
What This Means for Martha’s Vineyard
While national trends set the tone, the Vineyard has its own factors that make concessions a powerful tool in negotiations:
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Tisbury Septic Requirement: In designated watershed areas, properties must have a denitrification system that meets strict nitrogen-reduction standards at the time of sale, upgrade, or replacement. Installation can cost tens of thousands of dollars. Offering a closing credit to cover part—or all—of this expense can make a listing far more appealing to buyers.
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Land Bank Fee: Buyers on Martha’s Vineyard pay a 2% Land Bank fee at closing. On a $1.5 million home, that’s an extra $30,000. Some sellers choose to cover this fee (or split it) to help offset buyer costs.
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Inspection Repairs: Many sellers opt to offer a credit at closing instead of completing repairs themselves, giving buyers the flexibility to hire their preferred contractors.
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Mortgage-Rate Buydowns: Paying points to reduce the buyer’s interest rate can lower monthly payments, making the property more attainable without changing the asking price.
The Bottom Line
Whether it’s covering part of a Land Bank fee, helping with a septic upgrade, or offering a mortgage-rate buydown, well-structured concessions can keep your home competitive and help close a deal faster—without sacrificing your target price. And with prices still up roughly 55% over the past five years, most sellers have room to negotiate and still come out ahead.
At The O’Hanlon Group, we understand how to balance national market shifts with the unique factors of selling on Martha’s Vineyard. Want to know which concessions are helping homes sell fastest in our market? Reach out today to discuss the strategies that will position your home for success in today’s market.
