Seller Concession vs Price Reduction

I'll bet you didn’t realize this, but how a seller chooses to help you—through a price drop or concessions—can completely change your buying power. And if you play it right, one of these options can save you thousands more than the other.

Seller concessions and price reductions both save you money, but they work in totally different ways—and depending on your situation, one can benefit you way more than the other. A price reduction simply lowers the overall cost of the home. It brings the price down upfront, which means a slightly lower monthly payment and less interest over the life of the loan. Great for long-term savings.

Seller concessions, on the other hand, are all about helping you right now. Instead of lowering the price, the seller agrees to pay some of your upfront costs—things like closing costs, prepaid taxes, insurance, or even a rate buydown to lower your interest rate. This keeps more cash in your pocket on day one and can make buying a home much more doable, especially if you're tight on funds for closing.

The big difference? Price reductions help you over time. Seller concessions help you today. And depending on your loan type and your strategy, concessions can sometimes save buyers more upfront than a small price drop ever would.

If you want to see which option gives you the biggest advantage, reach out. I’ll run the numbers and help you make the smartest possible move.