US Homebuyers Receiving Seller Concessions, NYC Buyers Receiving Few

Homebuyers across the United States are successfully negotiating seller concessions, such as cash for repairs, closing costs, and mortgage-rate buydowns, with 44.7% of home sales in August including such perks. This figure represents an increase from 42.6% in August 2022 and marks the highest percentage for that month since at least 2020, according to a Redfin analysis. In contrast, the New York metro area reported a significantly lower rate of concessions at 5.7%, the second-lowest among 29 major metropolitan areas analyzed, with only San Jose, California, lower at 4.2%. This disparity indicates that buyers nationwide were nearly eight times more likely to receive concessions compared to those in New York. Seller concessions can encompass financial assistance for repairs, closing costs, mortgage-rate buydowns, and appliances, but do not include reductions in the listing or final sale price. The increase in national concessions is attributed to a surplus of homes for sale, which has enhanced buyer negotiating power. August 2023 was noted as the strongest buyer's market since Redfin began tracking in 2013, leading sellers to offer more incentives to close deals. Amanda Peterson, a Redfin Premier agent in Dallas, commented, "Buyers know they can be picky. They’re asking for every concession under the sun." The trend of concessions is particularly pronounced in the Sun Belt region, where demand has softened following a building boom during the pandemic. Atlanta recorded the highest concession rate at 72.8%, followed by Charlotte at 67.9%, Phoenix at 67.4%, Las Vegas at 66.7%, and Raleigh at 66.3%. In contrast, New York's market remains balanced, with an equal number of buyers and sellers, limiting buyers' ability to negotiate for additional perks. The concession rate in New York decreased by 0.9 percentage points from the previous year. Other cities with lower concession rates include San Francisco at 18.6%, Chicago at 21.9%, and Philadelphia at 25.5%. Additionally, 15.8% of homes sold in August received both a price reduction and a seller concession, the highest share recorded for August in Redfin’s history. The analysis was based on transactions submitted by Redfin buyers’ agents for the three-month period ending August 31.