Buyer Strategies in a Shifting Market: How to Make the Most of Seller Concessions and Temporary Buy Downs

As the housing market shifts from a seller’s market to a more balanced one, you might feel a little unsure about how to navigate the changing landscape. Inventory is up, and homes are sitting on the market longer, which means you have more options and more power as a buyer. But this doesn’t necessarily mean price cuts are the best way to go. There are other strategies that can help you secure a home with a better deal, without overpaying or rushing into a decision.

Let’s walk through some buyer strategies that can give you more room to negotiate and help you make a smart, confident choice in today’s market.

Context / Why It Happens

As we move from a seller’s market to a more balanced one, homes are staying on the market longer. This shift allows buyers more time to make decisions and a bit more leverage when negotiating. In cities like Charlotte, Raleigh, and Greenville, we’re seeing a mix of rising inventory and softening prices, which can work in your favor as a buyer.

For example, in Charlotte, inventory is up nearly 24% year-over-year. Homes are still selling, but with more options available, you don’t have to rush to make a decision. The longer a home stays on the market, the more willing sellers may be to negotiate. And the strategies I’m going to share are designed to help you do just that.

Seller Concessions: Getting Help with Closing Costs

One of the most powerful tools in a shifting market is asking the seller to pay for some of your closing costs. This is called a seller concession, and it’s becoming more common in markets where homes aren’t selling as quickly.

If you're putting down less than 10% on a conventional loan, the seller can pay up to 3% of your closing costs. If you’re putting down more than 10%, this can increase to 6–9% of the sales price. The exact amount depends on the type of loan and the down payment size. For FHA loans, sellers can cover up to 6% of the sales price. USDA loans typically follow similar guidelines, while VA loans have unique rules that allow the seller to pay off some of your debt to help you qualify.

The key here is understanding what closing costs are involved and negotiating to cover what you need. It’s a great way to reduce your out-of-pocket costs without affecting the price of the home.

Temporary Buy Downs: Lower Your Payments for the First Few Years

Another strategy that can help ease the financial pressure is asking for a temporary buy down. This means the seller will subsidize a portion of your mortgage payments for the first few years. For example, if you lock in a 7% interest rate, the first year’s payment could be based on a 5% rate. In the second year, it would be based on a 6% rate, with the full 7% rate kicking in after that.

This type of buy down is especially useful if you're concerned about high interest rates but still want the stability of a fixed mortgage. The seller pays the difference between what you would pay at your locked-in rate and what you’re paying under the temporary buy down. This money comes from the seller’s concessions at closing, and it can be a big win for buyers looking for a little breathing room at the start of their loan.

FAQ: What are seller concessions?

Seller concessions are when the seller agrees to cover part of the buyer’s closing costs. This can include lender fees, inspections, and appraisals. It helps reduce the upfront cost of buying a home.

FAQ: How much can a seller contribute to closing costs?

The amount a seller can contribute depends on your loan type. For conventional loans with less than 10% down, the seller can pay up to 3%. For FHA loans, the limit is 6%. USDA and VA loans have slightly different guidelines but typically allow for similar contributions.

FAQ: What’s the advantage of a temporary buy down versus a price cut?

A temporary buy down can save you more on your monthly payments in the short term than a price reduction. While a price cut may lower your sales price, the impact on your monthly payment is often minimal. A buy down, however, provides significant savings upfront, especially when mortgage rates are high.

In today’s shifting housing market, it’s important to think beyond just negotiating a lower price. Consider seller concessions or a temporary buy down to reduce your upfront costs and lower your monthly payments. These strategies can give you more financial flexibility and make homeownership more affordable, even in a higher-rate market.

If you’re in the market, take advantage of these strategies and don’t hesitate to reach out if you have any questions. I’m always here to help.

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Rebecca Richardson, “The Mortgage Mentor,” is a nationally recognized mortgage advisor based in Charlotte, NC, lending in multiple states across the U.S. With over 20 years of experience, she helps buyers navigate home financing with confidence whether you're buying your first home, investing, or navigating a major life transition. Rebecca is especially known for her work with veterans, move up buyers, and people going through separation & divorce.. As a top-producing loan officer and sought-after educator, she’s a trusted guide for buyers and real estate professionals nationwide.