What does it take to sell a house in today’s market? It may take a concession from the seller as buyers hold back and sellers face growing competition.
That’s the conclusion of a new Redfin analysis based on data submitted by its agents for rolling three-month periods beginning in 2019.
Nationally, in more than four out of 10 home sales (44%), buyers extracted concessions from homeowners in the first quarter of 2025. That compared to 39.3% in 1Q 2024 – an increase of 4.9 ppts. And even when the contracts were signed, many fell through.
These concessions were not the result of the price negotiations typical in home sales. These were concessions that required payments from the sellers, “that could include money toward repairs, closing costs, and/or mortgage rate buydowns," according to Redfin. One Redfin agent described a seller who covered the buyer's seven months of Homeowner Association fees.
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Redfin said sellers agree to these terms because buyers are holding back due to high home prices, mortgage rates, and economic uncertainty. At the same time, sellers may be competing against each other with listings now at a five-year high. In addition, many homes are overpriced and remain on the market longer, forcing sellers to make concessions, especially if they bought in 2021 or 2022 at the top of the market.
Seattle led the nation in granting concessions, with 71.3% of sales affected in 1Q 2025 – double the 36.4% share in 1Q 2024. Condos and new-construction townhomes were more exposed than single-family ones.“Condos have become a tougher sell because of skyrocketing HOA fees and insurance,” said Seattle-based Redfin agent Stephanie Kastner. “Builders are offering concessions because it’s in their best interest to keep sale prices high; they’re willing to pay buyers’ closing costs and maybe provide a free washer-dryer if it means they don’t have to drop the listing price.”
Other metros that have seen sharp increases in concession levels during the year include Portland, OR (up 14.2 percentage points to 63.9%), Los Angeles (up 11 percentage points to 56.1%), San Jose (up 10.6 percentage points to 16.7%), and Houston (up 6.2 percentage points to 46%). After Seattle and Portland, the nation’s highest concession rates are in Atlanta (61.5%), San Diego (60.7%) and Denver (59.2%).
The biggest drop in concessions was in New York, where they fell to just 5% during the year. San Francisco, San Jose, Boston, and Chicago are other cities with low concession rates. The most significant drops occurred in Miami, San Antonio, Tampa, and Phoenix. “Sellers in Florida and Texas have had more time to get used to a slow market, and have started pricing their homes lower from the get-go, meaning they often don’t need to offer concessions,” the report noted.
Many sellers are making concessions while lowering the asking price or accepting a lower offer. One in 10 accepted all three: the concession, the price cut, and a sale price below the original list price.
Redfin also noted another growing phenomenon: last-minute home sale cancellations. In March alone, 52,000 homes (13.4%) under contract were cancelled. Metros with the greatest percentage increases in cancellations included Seattle (2 ppts), Austin and Nashville (1.9 ppts each), Miami (1.8 ppts), and Newark (1.6 ppts).
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