Seller Concessions Are Back: What Homebuyers Should Negotiate in Today’s Housing Market

For several years, buying a home often meant competing with multiple offers, shortening contingency periods and asking the seller for as little as possible.

That conversation is changing.

According to Redfin, sellers provided concessions in 44.7% of U.S. home sales in August 2026, up from 42.6% one year earlier. Redfin defines a concession as something the seller provides that reduces the buyer’s total cost of purchasing the home, such as help with closing costs, repairs or a mortgage-rate buydown.

In California, the numbers vary dramatically by market. Redfin reported concessions on 58% of Riverside-area sales, 57.1% in San Diego and 56.2% in Los Angeles. Meanwhile, they were reported on just 18.6% of San Francisco sales and 4.2% in San Jose.

That is a perfect example of why there really isn't one California housing market.

What Is a Seller Concession?

A seller concession is something negotiated as part of the transaction that helps reduce certain costs for the buyer.

Depending on the loan program, purchase contract and transaction, that may include:

Closing-cost assistance

Mortgage-rate buydowns

Repairs

Certain prepaid expenses

Other allowable costs associated with purchasing the home

The important word is allowable.

Mortgage programs have rules governing seller contributions, and the amount and use of those funds can depend on the financing, occupancy, down payment and transaction.

That is why buyers should involve their lender before negotiating the structure.

A Price Reduction Isn't Always the Only Option

Buyers naturally focus on purchase price.

But there are situations where another concession could have a more immediate impact on the buyer's finances.

Imagine negotiating $10,000 from a seller.

One option might be reducing the purchase price by $10,000.

Another might be applying allowable seller funds toward closing costs.

Another possibility may be using allowable funds toward a temporary or permanent interest-rate buydown.

Those choices don't have identical financial consequences.

Before automatically negotiating price, I like to run the different scenarios so the buyer can actually see what each option does.

The Market Determines Your Negotiating Power

This doesn't mean every California seller is suddenly desperate.

Far from it.

Redfin's data demonstrates just how different individual markets can be.

San Jose buyers were receiving concessions in only 4.2% of transactions in the firm's August data, while Riverside was at 58%.

Even within the same county, a desirable turnkey property can behave very differently from a home that has been sitting on the market for 60 days.

Your negotiating strategy should consider the individual property, days on market, competing offers, seller motivation and local inventory.

The Question Buyers Should Be Asking

Instead of simply asking:

“How much below asking can we offer?”

Consider asking:

“How can we structure this offer to produce the best overall financial result?”

Sometimes price is the answer.

Sometimes closing costs are the answer.

Sometimes a rate buydown may be worth analyzing.

And sometimes the best strategy is simply getting the house you want without overcomplicating the transaction.

There isn't one universal answer.

But buyers have negotiating tools available today that many buyers barely had an opportunity to discuss during the frenzy of a few years ago.

Use them intelligently.

About the Author

Michael Belfor is a Branch Manager and Loan Originator with American Pacific Mortgage with approximately 24 years of mortgage experience. He has been recognized in APM's President's Club and Top 1% since 2017. NMLS 264700 | DRE 01878769.

Seller Concessions in 2026: Closing Costs, Rate Buydowns & More

seller concessions

seller credit closing costs, seller paid closing costs, mortgage rate buydown, homebuyer negotiation, seller concessions California, California homebuyers

Seller concessions are becoming more common. Learn how buyers may negotiate closing costs, repairs, rate buydowns and other allowable expenses.

What is a seller concession? Can a seller pay my closing costs? Can seller credits buy down my mortgage rate? Is a seller credit better than a price reduction?