Arianna Morris - The Agency

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!

We are starting to see the stats reflect the growing momentum of our market, as we head toward spring. Active listings increased, signaling more sellers are entering the market as we move toward the traditionally busier spring season. That activity is reflected in closed homes, which jumped 30% month over month, and in the median closing price rising modestly. This is the time of year when we begin to see seasonal price appreciation as buyer demand strengthens heading into the spring market.

One of the clearest signals of the seasonal shift is in market speed. Average days on the MLS are dropping, indicating homes are moving more quickly.

Seller Advice

Now is still the time to strike. With buyer activity rising but inventory also increasing, preparation matters more than ever. Buyers today are selective and highly price aware. Homes that are well-maintained, thoughtfully staged, and priced based on recent comparable sales are generating the strongest interest and, in some cases, multiple offers.

If you are considering selling this year, now is the ideal time to start preparing so your home enters the market in its best possible position.

Buyer Advice

The increase in inventory means buyers have more choices. That said, desirable homes in strong locations are still moving quickly, often within the first week of hitting the market. However, there are still other homes that have been on the market longer. In those cases, we can often negotiate concessions and more favorable terms.

If you are thinking about buying this year, the most important step is preparation. Having financing, strategy, and search criteria clearly defined ensures that when the right home appears, you are ready to act confidently.