How Buyers Are Scoring Extra Perks in Today’s Market

In many areas where housing inventory is on the rise, both homebuilders and sellers are sweetening the pot to attract buyers. They’re offering things like help with closing costs, mortgage rate buy-downs, and other benefits — commonly known in the real estate world as concessions or incentives.

What Are Concessions and Incentives?

These are extras a builder or seller provides to make a deal more appealing:

Concessions usually involve a seller giving something up to help close a deal — like agreeing to cover part of your closing costs or completing repairs.

Incentives are perks advertised up front to catch a buyer’s attention — such as included appliances or a temporary interest rate reduction.

Some of the most common examples include:

• Closing cost assistance

• Mortgage rate buy-downs

• Price reductions

• Free upgrades or appliances

• Home warranties

• Minor home repairs

These extras can make a big difference — especially if you're working with a tighter budget. According to the National Association of Realtors (NAR), these benefits help reduce the upfront costs of buying a home.

Builders Are Making It Easier to Buy

It’s not just a few builders offering incentives — it’s become a widespread strategy. Data from Zonda shows "Incentives continued to be popular in March, offered by builders on 56% of to-be-built homes and 74% of quick move-in homes.”

That’s because builders are motivated to sell inventory quickly. In fact, the National Association of Home Builders (NAHB) notes that about 30% of builders have lowered prices over the past few months — a clear sign they’re willing to work with buyers to get homes sold.

This isn’t a red flag — it’s a great opportunity if you’re in the market for new construction.

Existing Home Sellers Are Offering More, Too

Resale homes — those that have already been lived in — are also hitting the market in greater numbers. With more competition, sellers are becoming more flexible. In March alone, over 44% of existing home sellers offered concessions, and that number reflects a return to pre-pandemic norms. After years of sellers holding the upper hand, the market is shifting to a more balanced playing field — which benefits buyers.

However, keep this in mind: a concession doesn’t always mean a lower price. Sometimes it’s a seller covering repair costs, throwing in appliances, or helping you close with less out-of-pocket expense. Considering home values have increased over 57% in the past five years, offering concessions is a smart way for sellers to stay competitive — without sacrificing too much of their equity.

Bottom Line

Whether you’re shopping for a brand-new home or one with a bit of history, there’s a good chance you can negotiate some valuable extras.

Ask yourself: What kind of incentive would help you most right now? Closing cost help? A lower interest rate? Maybe just a few appliances included?

Let’s talk about what’s realistic based on current market conditions in your area — and how to make the most of today’s buyer-friendly opportunities.

Hey Inland Empire, I’m Candice Newman! I’ve had the incredible fortune of being born and raised in this amazing community, and I couldn’t imagine living anywhere else. I currently live in Alta Loma with my husband, Jonathan, our son, Trevor, and our dog, Ruger! I’m a real estate agent with a passion for finding new places to explore in the Foothill Communities. When I'm not selling homes, you can find me cheering my son on at his baseball games, exercising, spending time in our local mountains, heading to the lake, cooking, or watching the Dodgers slay the Giants (I was born and raised an Angels fan, but the Dodgers have taken over the household!). I'll never have enough Mexican food and Italian food in my life. I’m looking forward to connecting with you soon! See you around town! Candice.Newman.Realty@gmail.com | (909) 367-3280 DRE: 01924842