Redfin data reveals a shift in negotiating power as nearly half of U.S. homebuyers secure concessions from sellers.
Source: Original report
In a clear sign of shifting market dynamics, nearly half of U.S. homebuyers are now receiving concessions from sellers, according to August 2026 data from Redfin. This trend underscores the growing power of buyers in today's housing landscape.
Buyer's Market Drives Concession Rates
Seller concessions—such as help with closing costs, repairs, or mortgage-rate buydowns—increased to 44.7% of home sales in August 2026, up from 42.6% a year earlier. This marks the highest share for August since at least 2020. The rise in concessions reflects a broader trend toward buyer-friendly markets, where more homes for sale and fewer competing buyers give house hunters leverage to negotiate better terms.
"Buyers know they can be picky," said Amanda Peterson, a Redfin Premier agent in Dallas. "They're asking for every concession under the sun." This sentiment is particularly evident in newly built homes, where builders are offering substantial incentives, including mortgage-rate buydowns and appliances.
Sun Belt Cities Lead in Concessions
The trend is most pronounced in Sun Belt markets, where rapid homebuilding during the pandemic boom has left an abundance of listings. Atlanta tops the list, with 72.8% of sellers offering concessions, followed by Charlotte (67.9%), Phoenix (67.4%), Las Vegas (66.7%), and Raleigh (66.3%). In these markets, buyers have ample options, forcing sellers to sweeten the deal to close transactions.
This shift contrasts sharply with the pandemic-era frenzy, when low mortgage rates and remote work fueled demand for Sun Belt properties. Now, with fewer buyers competing for homes, sellers are more willing to cover costs or make repairs to attract offers.
Strong Markets Buck the Trend
Concessions remain rare in markets where demand still outstrips supply. San Jose, for example, saw just 4.2% of sellers offering concessions, followed by New York (5.7%) and San Francisco (18.6%). These markets are either balanced or tilted toward sellers, limiting buyers' ability to negotiate concessions.
However, even in strong markets, some sellers are combining concessions with price cuts to attract buyers. Nationwide, 15.8% of homes sold in August included both a price drop and a concession, up slightly from 15.6% a year earlier.
What This Means for Homebuyers and Sellers
For buyers, the current market presents an opportunity to negotiate favorable terms, particularly in areas with high inventory. However, it's important to weigh the value of concessions against the total cost of the home. For sellers, especially in competitive markets, offering concessions can be a strategic way to stand out and secure a sale.
Looking ahead, watch for shifts in concession rates as mortgage rates and economic conditions evolve. If buyer demand continues to soften, concessions may become even more common, further tipping the scale in favor of house hunters.
