$\"The$ \n

Negotiations are back. More buyers are asking for better deals<\/a>, and more sellers are giving them. Builders are throwing in extras, too.\u00a0<\/p>\n

That\u2019s why whether you\u2019re buying<\/a> or selling<\/a> today, there are two terms you\u2019ll hear a lot: concession and incentive.<\/p>\n

A concession <\/strong>is something a seller agrees to during negotiations to get a deal done.<\/p>\n<\/li>\n

\n
An incentive <\/strong>is a perk a builder (or a seller) advertises upfront to attract buyers.<\/p>\n<\/li>\n<\/ul>\n
Let\u2019s run through what you need to know about both and how they could play a role in your move.<\/p>\n
More Sellers Are Agreeing to Concessions<\/strong><\/h4>\n
Almost half (46%) of homeowners who sold recently gave the buyer a concession, according to Redfin<\/em>. That\u2019s the highest share on record for this time of year.<\/strong> And roughly 1 in 7 (16%) sellers went a step further, cutting their asking price and <\/em>offering a concession on top (see chart below)<\/em>:<\/p>\n
$\"a$ \u00a0<\/p>\n
So, what kind of concessions are we talking about?<\/p>\n
A seller might cover part of your closing costs<\/a>, take care of a repair, or offer a credit that trims your upfront costs. It\u2019s how they keep a deal on track when buyers have more options to choose from \u2013 and homeowners aren\u2019t the only ones compromising.<\/p>\n
Builders Are Cutting Prices, Too<\/strong><\/h4>\nNewly built homes<\/a> are seeing the same push and pull. According to the National Association of Home Builders<\/em> (NAHB), 62%<\/a> of builders are offering incentives right now. And about 35% are cutting prices outright (see chart below<\/em>):<\/p>\n
$\"a$ <\/p>\n
Those incentives often look like:<\/p>\n
\n
\n
Price adjustments<\/a><\/p>\n<\/li>\n
\n
Mortgage rate buydowns<\/p>\n<\/li>\n
\n
Free upgrades, like nicer finishes or appliances<\/p>\n<\/li>\n<\/ul>\n
Danielle Hale, Chief Economist at Realtor.com<\/em>, explains why:<\/p>\n
\n
\u201cNew construction has been one of the steadiest parts of the housing market over the past few years, but builders are clearly responding to today\u2019s affordability pressures and higher levels of existing-home inventory<\/em>.\u201d<\/p>\n<\/blockquote>\n
Even builders, who many people think rarely negotiate, are competing on price and perks. They have been for over a year now. The same data shows this is the 15th straight month where more than 60% of builders have offered incentives to sweeten the deal. And that\u2019s significant.<\/p>\n
What This Means for Your Move<\/strong><\/h4>\n
If you\u2019re buying<\/strong>, this is a good time to ask<\/em>. Whether you have your eye on an existing house or a newly built home, there\u2019s a chance the seller or builder will meet you partway on price, terms, or both.<\/p>\n
If you\u2019re selling<\/strong>, expect buyers to ask<\/em>. Even builders of brand-new homes are making concessions more often than not right now. Holding firm on every term could mean more time on the market, or a lost sale altogether.<\/p>\n
Bottom Line<\/h3>\n
Sellers and builders are both giving buyers more to work with this year. A local agent can tell you what to expect in concessions and incentives based on inventory and competition in your local market.<\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"
Negotiations are back. More buyers are asking for better deals, and more sellers are giving them. Builders are throwing in extras, too.\u00a0 That\u2019s why whether you\u2019re buying or selling today, there are two terms you\u2019ll hear a lot: concession and incentive. A concession is something a seller agrees to during negotiations to get a deal […]<\/p>\n","protected":false},"author":1,"featured_media":6531,"comment_status":"registered_only","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[12],"tags":[29,27,20,18,28],"class_list":["post-6530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-insight","tag-idaho-real-estate","tag-north-idaho-homes","tag-rain-silverhawk","tag-real-estate","tag-sandpoint-idaho"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t