Nearly half of the homes sold in America now come with something extra from the seller. Redfin found that 46.2% of May 2026 sales included a seller concession, the highest share for any May in its records.
Concessions are more common in the Sun Belt than in California, but the question comes up at almost every listing appointment I have: should I help the buyer with their costs, or just lower the price? The honest answer is that it depends on what is standing between your home and a signed contract.
What a concession actually is
A seller concession is money you agree to give the buyer at closing. It shows up as a credit in the contract, so your sale price stays where it is on paper. That credit can cover the buyer's closing costs, a repair found during inspection, or a mortgage rate buydown.
Concession or price cut?
A price cut lowers the price and the monthly payment for the life of the loan. A concession solves a different problem. It helps a buyer who can afford the payment but is stretched on cash to close, or one who needs a lower payment right now.
That is where a rate buydown shines. Take a $700,000 loan at 7.05%. A temporary 2 1 buydown drops the rate by two points in year one and one point in year two, which cuts the payment by about $902 a month in year one and about $462 a month in year two. Funding it costs the seller roughly $16,000. A permanent buydown works differently. Around $7,000 in points can lower the rate by roughly a quarter point, saving about $117 a month for as long as the buyer keeps the loan. These are examples only. Real costs depend on the lender and the day.
When each one makes sense
If your home is priced right and buyers are competing, you probably need neither. If buyers love the house but the payment scares them, a buydown can get the deal done without touching your price. If an inspection turns up a repair, a credit is usually cleaner than fixing it yourself. And if a home has sat for weeks, a price change often does more than any credit.
What to watch for
Lenders limit how much a seller can contribute. For a primary residence, conventional loans generally cap it at 3, 6, or 9 percent of the price depending on the down payment. FHA caps it at 6 percent and VA at 4 percent for certain concessions. The buyer's lender confirms the exact limit before you agree to anything.
Also compare your net, not your price. A $10,000 credit and a $10,000 price cut are not the same for you or for the buyer. With my paralegal background I read every concession clause closely, and I run a seller net sheet for each option so you see what lands in your pocket before you decide.
This is general information, not lending or financial advice. Talk to a lender about your own numbers.