Seller concessions on the rise again MABA MassachusettsRealEstate FirstTimeHomeBuyers MaByerAgent

 Nearly half of all home sales in the past three months included seller concessions, according to the latest Redfin report. These concessions include money towards repairs, mortgage rate buy downs and covering closing costs. During the same period a year earlier, seller concessions were recorded in only about thirty one percent of all home sales. Increased mortgage rates have sidelined many would-be buyers, allowing inventory levels to increase. As a result, buyers can now “shop around” more than during the peak of the pandemic, putting the burden of concessions back on sellers. “Buyers today are way more demanding and selective. They’re willing to wait to find the perfect house, which wasn’t the case during the pandemic home buying boom,” said Palm Beach Redfin agent Elena Fleck.

  “During the peak of Covid, it took two to three days to sell anything regardless of the condition, location or square footage. Now, a home that’s not perfect may stay on the market for three to four months if the seller doesn’t throw in something to sweeten the deal.” Many sellers are even slashing their listing prices to entice buyers. Redfin reported that twenty five point two percent of home sales during the three-month period ending February 28, 2023 sold for less than their list price and included seller concessions. Similarly, twenty point six percent of homes included concessions and underwent a price cut while on the market. A record thirteen percent included price cuts, a below-asking final price and seller concessions.

 Seattle was the market with the largest year-over-year hike in seller concessions: fifty one point six percent of all sales in the past three months included a perk for buyers, compared to twenty point one percent in 2022. Meanwhile, seller concessions decreased year over year in Austin and Chicago, down three percent and two point one percent, respectively. Concessions are most common in Las Vegas, where they factored into seventy five percent of all home sales in the past three months: up forty four point four percent in Sin City. Conversely, the metro area with the least seller concessions was New York, where only sixteen point seven percent of sellers had to offer extra to entice buyers.

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