Nearly Half of Buyers Are Getting Seller Concessions. How to Use Them Wisely in San Diego and Chicago

Concessions are back in the conversation. Nearly half of homebuyers are now receiving some form of concession from sellers, according to Redfin, as more markets tip in buyers' favor. The report found concessions most common in Sun Belt markets such as Atlanta and Nashville, where about 7 in 10 buyers get them, and least common in stronger markets like the Bay Area.

That split is the part worth paying attention to. A national headline about buyer leverage does not play out evenly everywhere, and San Diego and Chicago each behave differently from the Sun Belt markets driving these numbers. Coastal San Diego, with limited land and steady demand, has historically given well-priced sellers more room to hold firm. Chicagoland can vary block by block, with some condo buildings negotiating very differently from single-family homes in close-in suburbs.

For buyers, the lesson is that price is only one lever. A seller who will not move on list price may still be willing to cover closing costs, credit a repair flagged at inspection, or help fund a mortgage rate buydown. That last option deserves a close look, since a lower rate changes the monthly payment for as long as you hold the loan. Ask your lender to model a price reduction and a buydown side by side before you write an offer, so you know which one actually serves you.

For sellers, a concession is often a cleaner tool than a price cut. A reduction shows up on the listing page and resets how every future buyer views the home. A credit negotiated during escrow can solve a specific problem, such as a buyer stretching to cover cash to close, without signaling weakness to the wider market. Sellers who decide in advance how much they are willing to give, and in what form, tend to negotiate from a calmer position when the request arrives.

What we are watching. Concessions often shift before list prices do, which makes them a useful early read on where a market is heading. Our team pays close attention to them in the San Diego and Chicago transactions we handle, because they frequently reveal more about real negotiating power than asking prices alone.

If you are planning a purchase or sale this fall, talk with us about structuring terms, not just price. The right credit in the right place can be worth more than a headline number.