The housing market is cooling in many areas, but conditions vary widely by location, price range, and property. Nationwide, more than one in four listings (26.3%) carried a price cut in August 2026, half a percentage point above a year earlier, even as mortgage rates holding above 6.5% kept many buyers on the sidelines (Zillow). In markets where inventory has grown and price reductions are common, seller concessions can be a practical negotiation tool, but they are not guaranteed in every deal.
For homebuyers in Plano and across the country, that means the conversation about your offer may have changed. In many markets you now have more room to ask for seller-paid costs that lower what you bring to closing, but the leverage you hold depends on your local inventory, price range, and how long homes in your area sit on the market. Knowing how concessions work, what they can cover, and where the limits sit can help you make a stronger offer.
The rise of the buyer's market
A buyer's market takes shape when there are more homes for sale than there are buyers ready to buy, and the leverage flips to the side with the options. That describes many metros this fall, though not everywhere: nationally, inventory stood at 1.41 million homes in August 2026, up 3% from a year earlier, while price cuts became more common as sellers adjusted to softer demand (Zillow). Your local balance of buyers and listings, not the national average, determines how much negotiating room you have.
Beyond price tags, the cooling shows up in sales data. Existing-home sales rose 1.5% in September 2026 compared with August, but were down 2.2% from a year earlier, and the share of listings with a price reduction climbed to nearly 21% — the highest September reading since 2018 — as mortgage rates topped 7% (industry data). Higher inventory and longer days on market can give buyers more negotiating power, but sellers are adjusting to local conditions rather than a uniform national shift.
What are seller concessions?
A seller concession is a financial incentive the seller agrees to contribute to help cover costs associated with the buyer's purchase, most often the closing costs or a rate buy-down rather than a cut to the listing price. CrossCountry Mortgage's guide to seller concessions explains how sellers can help make a home more affordable without dropping the price outright. Any seller contribution is subject to your loan program's requirements and may only be used toward eligible expenses, so confirm the rules with your loan officer before you write an offer.
The buyer's lender applies these seller-paid credits to lower the cash you need to bring to closing. Concessions are not required, but they are more common in markets where sellers need to move a property. They can cover eligible expenses such as closing costs, title and escrow fees, and temporary interest-rate buy-downs, subject to the limits of your loan program.
What concessions commonly cover
Closing costs — title search, appraisal, origination fees, and prepaid items that otherwise come out of your pocket, when allowed by your loan program.
Rate buy-downs — the seller can help fund a temporary reduction in your monthly payment in the early years of the loan; the borrower pays the full payment once the subsidy ends.
Repair credits in real estate — the seller may credit you for items found in the inspection, but these credits must comply with your loan program, appraisal, and underwriting requirements and are not unrestricted cash paid to you.
The key distinction is that a concession lowers your out-of-pocket cost without necessarily changing the sale price, and the amount a seller may contribute varies by loan program, occupancy, loan-to-value ratio, and other applicable requirements. Programs do not all apply the same limits, so confirm the ceiling that applies to your specific loan.
Leveraging concessions for affordability
When rates sit high, the monthly payment is often the deciding factor, and concessions can ease that pressure without changing the price you agree to. A seller-funded temporary buy-down applies funds contributed at closing to subsidize a portion of your monthly principal and interest payment for a set period — it does not change the underlying note rate. You must qualify at the full note interest rate, and you become responsible for the full principal and interest payment when the subsidy period ends. CrossCountry Mortgage describes the temporary mortgage buydown as a way to lower your monthly payment for a set period, with the seller or builder providing the savings. Any seller contribution is subject to negotiated terms and the requirements of your loan program.
Buyers often use them. In Zillow's Consumer Housing Trends Report, about a quarter of buyers (29%) said they won a mortgage rate buy-down in their final offer, defined as a seller agreeing to buy down the buyer's interest rate (Zillow Research). Any seller contribution is subject to negotiated terms and the requirements of your loan program, and it may only be used toward eligible expenses.
How to make concessions work for you
Ask early — Raise the topic when you write the offer, not after. In a buyer's market, many sellers expect the request.
Get pre-approved first — Your loan officer can show you how a seller credit would apply to your cash-to-close.
Understand the limits — Concessions cap by loan program, so confirm with your lender what a seller may contribute on your specific loan.
Pair them with a buy-down — A temporary rate buy-down funded by the seller can lower payments in the early years when your budget is tightest.
Using concessions well is a coordination between you, your real estate agent, and your loan officer. The seller agrees to the credit, and your lender structures it into your closing costs and monthly payment.
What this shift means for you
Negotiating conditions now vary widely by location, property, and price range. In some markets buyers hold meaningful leverage — higher inventory and more frequent price reductions can open room to negotiate on price and on seller-paid costs — while others remain competitive with limited room for concessions. Your local balance of listings and buyers, not the national average, determines how much you can ask for, and every deal is shaped by its own property, price range, and loan program.
Ready to make your offer stronger?
Contact me with questions about seller concessions, rate buy-downs, or your home financing options.
Contact meIf you have questions about seller concessions, rate buy-downs, or your home financing options, I'm here to help. Justin Steiner, Loan Officer | NMLS #514220, at CrossCountry Mortgage in Plano, TX. Contact me with questions.
1Is there a limit on how much a seller can contribute toward closing costs?
FHA, VA, USDA, and conventional loans each set their own limits on how much a seller can contribute, and those limits vary by program, occupancy, and loan-to-value ratio. Your loan officer can confirm the ceiling that applies to your specific loan before you write an offer.
2How does a temporary rate buy-down work?
A seller-funded temporary buy-down applies funds contributed at closing to subsidize a portion of your monthly principal and interest payment for a set period, such as the first 1–3 years of the loan depending on the program and your loan officer's confirmation. It does not change the underlying note rate, and you become responsible for the full payment once the subsidy period ends.
3Can I negotiate both a price reduction and a concession?
You can ask for a price reduction and a concession as part of the same negotiation, but keep them separate line items so your loan officer can confirm both stay within program limits. Concessions lower your out-of-pocket costs; a price cut lowers the amount you finance.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. CrossCountry Mortgage, LLC (“CrossCountry”) does not guarantee the quality, accuracy, completeness, or timeliness of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by CrossCountry. CrossCountry its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort, or other tortious action.
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USDA: Subject property and borrower income and credit must qualify to USDA guidelines.
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