The real estate market has been shifting. While sellers in Huntsville and North Alabama had the upper hand over the past few years, an increase in available homes is leading to a more balanced market. As a result, sellers are finding they may need to be more flexible when negotiating with buyers. One strategy that can help? Offering seller concessions.
As the National Association of Realtors (NAR) explains:
“As home inventory begins to grow and buyers regain some advantage in the market, sellers may consider offering more in negotiations to make the deal more attractive and get to the closing table.”
What Are Seller Concessions?
Seller concessions are incentives a homeowner offers to help close a deal. In 2024, nearly 1 in 4 sellers (24%) provided some form of concession to buyers, according to NAR. These can take many forms, but some of the most common include:
- Assisting with Closing Costs – Sellers may agree to cover some or all of the buyer’s closing costs, such as loan fees, title insurance, or appraisal costs.
- Price Adjustments – Instead of making repairs, some sellers choose to lower the home’s price, giving buyers the flexibility to handle updates on their own.
- Including a Home Warranty – Offering a home warranty can give buyers peace of mind that essential repairs will be covered during their first year of homeownership.
These concessions aren’t necessarily an extra expense out of pocket. Instead, they are deducted from your proceeds at closing, making them a strategic way to attract buyers without added financial strain.
Additionally, some concessions aren’t even monetary. For instance, if a first-time buyer moving to Huntsville from an apartment has never maintained a yard before, they might appreciate you leaving behind your lawn care equipment. Small gestures like this can help close a deal.
How Concessions Help Sellers in a Changing Market
Being open to concessions can be a game-changer, especially as the market shifts. Dennis Shirshikov, a Professor of Finance and Economics at City University of New York, emphasizes the importance of flexibility:
“Pricing homes realistically and being willing to offer concessions, such as covering a portion of closing costs or including upgrades, will be key to closing deals . . . in a less frenzied market.”
Let’s say you accept an offer, but after the home inspection, the buyer requests repairs before moving forward. Instead of starting over and looking for a new buyer, concessions can help bridge the gap.
- You could agree to make the repairs yourself before closing.
- If you’d rather not deal with contractors, you could lower the sale price to reflect the cost of repairs.
- Another option is offering to cover part of the buyer’s closing costs, freeing up their budget to handle the repairs themselves.
Each scenario helps keep the deal moving forward while making your home more attractive to buyers. However, it’s important to strike the right balance so you don’t give away too much.
Why You Need an Experienced Local Agent
Navigating negotiations requires a knowledgeable real estate agent who understands the Huntsville and North Alabama market. A skilled local agent like John Wesley Brooks will help you determine when and how to offer concessions while ensuring you maximize your home’s value. It’s all about finding solutions that work for both you and the buyer.
So, What’s The Bottom Line?
As the market balances out, seller concessions are becoming a more common tool for closing deals. If you’re thinking about selling your home in Huntsville or North Alabama, working with a trusted real estate expert—like John Wesley Brooks and The Brooks Family of Realtors—can help you navigate negotiations and secure the best possible outcome.
Remember, The Brooks Family Of Realtors has been serving the North Alabama and Tennessee Families with their real estate needs since 1972.
Take A Look At One Of The Videos We Made Of The Latest Changes Our Local Real Estate Market Around Huntsville Alabama Have Been Through To Match The National Regulations In The USA Real Estate Industry
