By Mike Lentz | The Mike Lentz Team – Keller Williams Realty
Yes. Seller concessions are at record highs nationally, with nearly half of all sellers offering them to close deals. Builders are also competing harder, offering incentives like rate buydowns and upgrades. South Jersey buyers and sellers are both seeing more negotiation flexibility than they’ve had in years, making it a critical time to understand how these tools work in your favor.
The “take it or leave it” attitude that defined the pandemic housing market is fading fast. Seller concessions are back on the table, and negotiations are too. More buyers are asking for better deals, and more sellers are giving them. Builders are throwing in extras, too. Understanding seller concessions and how they work is key for anyone navigating today’s market.
When you’re buying or selling today, there are two terms you’ll hear a lot: concession and incentive.
- A concession is something a seller agrees to during negotiations to get a deal done.
- An incentive is a perk a builder (or a seller) advertises upfront to attract buyers.
Let’s run through what you need to know about both and how they could play a role in your move.
More Sellers Are Agreeing to Seller Concessions
Almost half (46%) of homeowners who sold recently gave the buyer a concession, according to Redfin. That’s the highest share on record for this time of year. And roughly 1 in 7 (16%) sellers went a step further, cutting their asking price and offering a concession on top.
So, what kind of seller concessions are we talking about?
A seller might cover part of your closing costs, take care of a repair, or offer a credit that trims your upfront costs. It’s how they keep a deal on track when buyers have more options to choose from.
And homeowners aren’t the only ones compromising.
Builders Are Cutting Prices and Offering Seller Concessions Too
Newly built homes are seeing the same push and pull. According to the National Association of Home Builders (NAHB), 62% of builders are offering incentives right now. And about 35% are cutting prices outright.
Those incentives often look like:
- Price adjustments
- Mortgage rate buydowns
- Free upgrades, like nicer finishes or appliances
Danielle Hale, Chief Economist at Realtor.com, explains why:
“New construction has been one of the steadiest parts of the housing market over the past few years, but builders are clearly responding to today’s affordability pressures and higher levels of existing-home inventory.”
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’s significant.
What This Pattern Means Across South Jersey
This trend is playing out in markets across Camden, Burlington, Gloucester, Salem, and Cumberland counties. Sellers are competing for buyers in ways we haven’t seen since before the pandemic.
Locally, the picture is steadier than the national headline suggests. When we pulled every closed residential sale across our five counties over the past year, roughly 1 in 3 included a seller concession. When a seller did contribute, the typical amount landed around $5,500, or close to 1.7% of the sale price. That local number is what actually matters when you’re planning your move here.
If you’re wondering about the current market conditions, the answer is more nuanced than it was two years ago. Buyers have leverage again.
What Seller Concessions Mean for Your Move
If You’re Buying
This is a good time to ask. If you have your eye on an existing house or a newly built home, there’s a chance the seller or builder will offer seller concessions to meet you partway on price, terms, or both.
Don’t assume the list price is the final price. Don’t assume closing costs are all on you. Ask about what’s negotiable. You might be surprised.
If You’re Selling
Expect buyers to ask. Even builders of brand-new homes are offering seller concessions more often than not right now. Holding firm on every term could mean more time on the market, or a lost sale altogether.
That doesn’t mean you have to say yes to everything. But understanding how to price competitively and where to flex can be the difference between a quick close and a stale listing.
Bottom Line
Sellers and builders are both giving buyers more to work with this year. The rigid, no-negotiation days are behind us. If you’re making a move, knowing what’s realistic to expect in your county makes all the difference.
If you want to talk through what this means for your situation, including how seller concessions might factor into your transaction, schedule a quick call and we’ll walk through it together.
For the full picture in your county, see our county market reports for Camden, Burlington, Gloucester, Salem, and Cumberland counties.
