Luxury home sellers offering more creative concessions

Luxury home sellers are offering more and increasingly creative concessions in 2025, according to The Agency’s annual Red Paper, a comprehensive wealth and real estate market report.

A survey of The Agency brokers saw more than 60% reporting more concessions this year compared to 2024.

“Concessions aren’t a sign of desperation,” said Deborah Morton, managing partner of The Agency Atlanta, who says concessions are common in her region. “They’re a sign that you know how to get deals done. The most successful agents and sellers are using them smartly, tailoring each deal to fit buyers’ needs while protecting sellers’ bottom line. That’s what it takes to win right now.”

Still-high interest rates are incentivizing more sellers to market their homes with assumable loans with lower rates — or buy down buyers’ mortgage rates to lessen monthly payments, said Jen Cameron, managing partner at The Agency Seattle.

She shared the story of a recent creative concession involving a rent-to-own scenario on a property that had seen multiple price cuts.

“My buyer could immediately begin renting the property on (online marketplace Vacation Rentals By Owner) during the peak vacation season — even before closing,” says Cameron. “While making a modest rental payment to the seller in the interim, he’s now positioned to generate nearly double in rental income, offsetting his costs and maximizing cash flow while we finalize loan assumption.

“For the seller, this strategy helped offset holding costs and finally moved long-stagnant property toward closing,” she adds.

High-cost home insurance — especially in areas prone to wildfire — has become another factor in spurring creative concessions.

Michelle Schwartz, managing partner and founding agent of The Agency, said a recent seller offered to cover a buyer’s first year of insurance premiums.

Some sellers are offering multi-year home warranties instead of standard one-year coverage, with some warranties even including pool, spa equipment, HVAC systems, electrical repairs and roof repairs.

“In Los Angeles specifically [this is happening], where inventory is climbing again but pricing hasn’t fully corrected,” Schwartz said. “These kinds of creative concessions are often more palatable to sellers than reducing their listing price, and they give buyers a sense of short-term financial relief.”

The report can be viewed in its entirety here.