The real estate market has seen a lot of changes over the past few years, shifting from a seller’s market to a more balanced one. As the number of homes for sale in Cookeville, TN increases, sellers are finding they may need to be more flexible to close a deal. One effective strategy to ensure a smooth sale is offering seller concessions.

According to the National Association of Realtors (NAR), as home inventory grows, buyers are gaining more leverage. This shift may mean sellers need to offer more during negotiations to keep deals on track and get to the closing table. In this blog, we’ll explain how seller concessions work and why they can be beneficial to sellers.

What Are Seller Concessions?

Seller concessions refer to the costs that a seller agrees to cover to help close a deal. In 2024, nearly 24% of sellers offered concessions, showing that this strategy is growing in popularity. Here are a few of the most common types of seller concessions:

• Covering Closing Costs: The seller pays part or all of the buyer’s closing costs, such as appraisal fees, title insurance, or loan fees.

• Price Adjustments: Instead of completing repairs, a seller may choose to lower the purchase price, allowing the buyer to handle the updates themselves.

• Offering a Home Warranty: The seller may include a home warranty, ensuring the buyer that major repairs will be covered during the first year of ownership.

It’s important to note that seller concessions do not require you to come up with more cash upfront. These are costs that get subtracted from your profits at closing, not additional out-of-pocket expenses.

How Seller Concessions Help Sellers

Offering seller concessions can be an excellent way for sellers to close a deal in a shifting market. As Dennis Shirshikov, a finance and economics professor at City University of New York/Queens College, said, "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’ve accepted an offer, but after the home inspection in Cookeville, TN, the buyer requests repairs. Instead of searching for a new buyer, offering a concession could help you close the deal. Here are some options:

• Cover the repair costs yourself.

• Lower the purchase price by the amount needed for repairs.

• Offer to cover a portion of the buyer’s closing costs, allowing them to use that saved money for repairs.

This strategy helps you avoid the hassle of finding another buyer while meeting the buyer halfway. An experienced agent will help guide you through these negotiations, ensuring you don’t give up too much while still making the sale happen.

How a House Seller Calculator Can Help

Before making any decisions, using a calculator for selling house is a great first step. A house seller calculator can provide an estimate of your home’s value, helping you determine how much room you have to offer concessions and still get a fair price for your property. It’s also a valuable tool to help you understand the potential impact of lowering the price or covering closing costs.

The Bottom Line

With the real estate market shifting and becoming more balanced, seller concessions are becoming more common. Offering them can help your home stand out in a competitive market and make it easier to close a deal. Working with a skilled real estate agent can help you navigate when and how to offer these concessions so you can sell your home for the right price.

If you’re thinking about selling your home in Cookeville, TN, be sure to reach out to an experienced real estate professional. They’ll help you use tools like a house seller calculator and advise you on the best strategies to ensure a successful sale. With the right approach, you can sell your home and move on to your next chapter with ease!