During the three months ending Oct. 31, home sellers gave concessions to buyers in 35 percent of U.S. home sales. This percentage is not very different from a year earlier (35.9 percent), but it is higher than it was two years ago (27.6 percent). Concessions typically include money toward repairs, closing costs, mortgage rate buydowns or other items that would help reduce the buyer’s total cost of purchasing the home, but they do not include lowering the purchase price due to negotiations with the buyer.
“Sellers have become more open to the idea of giving out concessions, in part because many want to get their homes sold quickly due to major life events like divorce and new jobs. Homeowners who don’t have to move are staying put and holding onto their low mortgage rates,” said agent David Palmer. “The good news for buyers, aside from more concessions, is that contingent offers are also more feasible in a market like this, meaning house hunters don’t have to waive inspections and other important safeguards.” In addition, home builders are offering deals to offload newly built inventory and taking up a greater share of home sales. In the third quarter, 30.6 percent of U.S. single family homes were new construction.