Sun Belt Home Sellers Are Offering More Help to Close the Deal

Homebuyers in Charlotte, Phoenix and other Sun Belt markets are increasingly getting sellers to help cover the cost of a purchase, as a growing choice of properties puts pressure on owners to negotiate.

Seller concessions appeared in 67.9% of Charlotte transactions and 67.4% in Phoenix, compared with 44.7% nationally, according to Redfin’s September 18 report, the original source of the figures. Atlanta led at 72.8%, followed by Charlotte, Phoenix, Las Vegas and Raleigh.

The figures cover the three months ending August 31 and reflect transactions reported by Redfin buyers’ agents, rather than every home sale.

The negotiation goes beyond the price

Concessions can include contributions toward closing costs, repairs or mortgage-rate buydowns. Redfin counts those separately from a reduction in the sale price.

Nationally, the share of transactions involving concessions rose from 42.6% a year earlier. In Nashville, Houston and Las Vegas, sellers outnumbered buyers by more than two to one, giving house hunters more alternatives and sellers more competition.

For households with limited savings, help with upfront expenses can change the immediate cost of completing a purchase.

More bargaining room, but a costly mortgage

The shift comes with a substantial obstacle: borrowing remains expensive. The average 30-year fixed mortgage rate reached 6.95% in the preceding week, according to Freddie Mac figures cited in Business Insider’s September 20 coverage. High rates and elevated prices continue to keep prospective buyers on the sidelines.

A seller’s contribution can ease the cash needed to close, but that is a different question from whether the ongoing payment fits a household budget. Buyers now have more room to negotiate in several major Sun Belt markets. Affordability still depends on the whole deal.