03/18/2026
Concession: Every Buyer Wants Them!
Concessions have become a staple in the Dever market over the last couple of years. Buyers are using them to secure a lower rate and offset closing costs. This is happening so frequently that today I got an appraisal back noting that price adjustments for seller-paid concessions were only made if they were over $20k. Meaning no adjustment to the sales price was made if the home closed with a concession under $20k. That is a significant amount of money in concessions, and it's happening so frequently that it's assumed to be standard in the market.
Concessions, however, are not noted in any major monthly real estate stats, such as median or average closed price.
As a seller, it's important when looking into recent sales near you to fully understand the comparables for your home beyond the top-line sale price. If each house in your neighborhood has sold with a 15-20k seller concession, your bottom line is going to change.
As a buyer, if every home in a neighborhood is selling with 15-20k of concessions. Those sellers are willing to accept 20k less on their net to sell their home. That is significant cash the seller is willing to give you that you may not be aware of if you take a cursory glance at recent closed sales on Zillow. This is where a good Real Estate agent matters. A good agent will dig into the details of those sales and help you understand the nuances of the market because, just like other market factors in Denver, the prevalence and amount of concessions vary neighborhood by neighborhood and price point by price point, and understanding these factors will prevent you from leaving money on the table.
The common occurrence of concessions indicates that the majority of buyers prefer concessions over a price reduction.
Why do you think buyers favor a seller concession over a price decrease? Do you think a seller concession is favored by a seller over a price reduction? I have my talking points, but I want to hear yours!