Concessions and Incentives: What’s in It for You as a Buyer?

How Buyer Incentives and Seller Concessions Can Work in Your Favor

Here on the Central Coast, we’re seeing more homes on the market—both brand new builds and existing homes. And when inventory rises, sellers and builders often respond with something called concessions or incentives. In simple terms, they’re giving buyers a little something extra to help sweeten the deal.

What Are Buyer Incentives and Concessions?

A concession is when a seller agrees to a compromise to help close the deal—things like covering closing costs or agreeing to a repair.

An incentive is usually something advertised upfront to attract buyers—often offered by homebuilders. This could be a mortgage rate buy-down, appliance upgrades, or a temporary discount.

These perks can make a big difference, especially if you’re working with a tighter budget or want to maximize your buying power.

What Builders Are Offering Right Now

According to the housing research firm Zonda, over half of all new home builders are currently offering incentives—especially on homes that are ready to move in within the next 90 days. That’s because they’re motivated to sell and don’t want inventory to sit.

In fact, data from the National Association of Home Builders shows about 30% of builders have lowered prices in recent months. That doesn’t mean the market’s in trouble—it just means there’s room to negotiate, which is great news for buyers.

Existing Home Sellers Are Stepping Up, Too

It’s not just builders getting creative. Existing home sellers are also making moves. As more homes come to market, sellers know they need to stand out. In March, over 44% of sellers included some type of concession to help make a deal.

While some sellers may lower their asking price, others may offer to cover closing costs, leave behind major appliances, or pay for minor repairs.

These offers don’t just help buyers—they help sellers stay competitive without sacrificing the equity they’ve built, especially after several years of significant home value growth.

What This Means for You

The market is shifting—just enough to create opportunity. You may not get everything on your wish list handed to you, but with the right strategy and a strong agent in your corner, you could walk away with a better deal than you expected.

Bottom Line

Whether you’re eyeing a new build or a lived-in gem, today’s market might offer more flexibility than you think. Curious about what kinds of incentives are popping up in our local San Luis Obispo County market? Let’s talk.

If a builder or seller offered you something extra, what would help the most? Let’s chat about how to make that happen.

And for more buyer tips, helpful resources, and answers to common homebuying questions, visit buywithamber.pillarrealestate.com. I built it just for you—to help make this process a whole lot easier.