Buyers Have More Negotiating Power Right Now Than They Realize

I had a conversation last week with a couple in Charlotte who had been waiting over a year to buy their first home. They were convinced the market was stacked against them. When I showed them that the home they loved had already been sitting for two months and the seller had dropped the price twice, they looked at me like I was speaking another language. “We thought everything was still selling in a weekend,” they said.

It’s not. And if you’re sitting on the sidelines right now thinking you have no leverage, you’re leaving real money on the table.

Key Takeaways

• About 62% of homebuyers last year purchased below the original listing price, the highest share since 2019, according to Redfin data.
• Seller concessions are showing up in roughly half of all transactions right now, and smart buyers are using them for more than just closing costs.
• Homes are taking longer to sell than they have in six years, which gives you more room to negotiate on price, terms, and credits.
• The spring buying season is heating up, and this negotiating power won’t last forever. As more buyers come back, the leverage shifts.
• Getting pre-approved before you start shopping puts you in the strongest possible position to negotiate.

The Market Has Quietly Shifted in Your Favor

Buyers right now have more options, more time, and more negotiating room than at any point since before the pandemic. Here’s what the numbers actually look like.

According to a February 2026 report from Redfin, the typical home that sold in January spent 64 days on the market before going under contract. That’s the longest stretch in six years. A year ago, that number was closer to a week shorter. Two years ago, homes were flying off the shelf.

Sellers are also outnumbering buyers by a record gap. That means there are more people trying to sell than there are people actively buying. When that happens, the power shifts. Sellers get more flexible. Prices soften. And buyers who actually show up with a solid offer and a pre-approval letter have real weight at the negotiating table.

On top of that, home price growth has cooled significantly. According to Cotality (formerly CoreLogic), year-over-year price growth slowed to just 0.9% nationally in December 2025, one of the softest readings in over a decade. In parts of the South and West, prices are actually declining in some metros.

What I tell my clients is simple: the buyers who are out there right now are getting deals that weren’t on the table 12 months ago. If you’re waiting because you think the market is against you, you might want to take another look.

What Are Seller Concessions (And Why Should You Care?)

Seller concessions are when the seller agrees to cover some of your costs as part of the deal. Think of it as the seller kicking in money to make the transaction work for both sides.

The most common version is when a seller covers part or all of your closing costs. Those fees typically run between 2% and 5% of the purchase price, and they can add up fast. On a $350,000 home, that could be anywhere from $7,000 to $17,500 coming out of your pocket at the closing table. If the seller covers even a chunk of that, it makes a huge difference in how much cash you need upfront.

But here’s the part most buyers miss: concessions can be used for way more than just closing costs.

According to the National Association of REALTORS, seller concessions are negotiated during the offer stage and can cover things like title insurance, appraisal fees, prepaid property taxes, and even discount points to buy down your monthly payment.

That last one is a big deal right now. I’ll break it down in the next section.

How Smart Buyers Are Using Concessions to Lower Their Monthly Payment

Here’s a strategy I’ve been using with a lot of my clients lately, and it’s been a game-changer.

Instead of asking the seller to just cover closing costs, you ask for a credit and use it to buy discount points. Discount points are basically prepaid interest. You pay a fee upfront (or in this case, the seller pays it), and your monthly mortgage payment goes down for the life of the loan.

One point typically costs 1% of the loan amount and can reduce your payment meaningfully over 30 years. When the seller is paying for it, you’re getting a lower monthly payment without spending an extra dollar out of your own pocket.

I recently worked with a buyer in Tampa who was stretching to make the numbers work on a conventional loan. We negotiated a 3% seller concession and used the entire amount to buy down the payment. The result? A monthly payment that fit comfortably in their budget instead of one that made them nervous every month.

This works especially well right now because sellers are motivated. When a home has been sitting for 60 or 90 days, most sellers would rather give you a credit than drop the price. It keeps the sale price on the books (which matters for their neighbors’ property values and their own ego), and it gives you real financial relief.

Concession Limits by Loan Type

Every loan type has rules about how much a seller can contribute. Here’s the quick breakdown:

Loan Type	Max Seller Concession
Conventional (less than 10% down)	3% of purchase price
Conventional (10% to 25% down)	6% of purchase price
Conventional (more than 25% down)	9% of purchase price
FHA	6% of purchase price
VA	4% of purchase price
USDA	6% of loan amount

Per CFPB guidelines, concessions are limited to the lesser of the sale price or appraised value. So if you negotiate a 3% credit on a $400,000 home but it appraises at $390,000, your maximum concession is based on the appraised value.

These limits are there to prevent inflated sale prices, but within those guardrails, there’s a lot of room to work with.

Temporary Buydowns: Another Tool Most Buyers Don’t Know About

A temporary buydown is different from buying permanent discount points. With a temporary buydown, the seller funds an account that reduces your monthly payment for the first one, two, or three years of the loan. After the buydown period ends, your payment adjusts to the full amount.

The most common structure right now is a 2-1 buydown. In the first year, your payment is calculated as if your rate were two points lower than it actually is. In the second year, it’s calculated as if your rate were one point lower. Starting in year three, you pay the full amount.

Why does this matter? Because it gives you breathing room in those expensive early years of homeownership when you’re also buying furniture, handling repairs, and figuring out what it actually costs to own a home. And if rates come down later, you can refinance before the buydown period even ends.

According to the National Association of Home Builders, 67% of builders were using buydowns and other sales incentives as of late 2025, the highest share in over five years. New construction builders aren’t the only ones offering them either. In resale transactions, a motivated seller can fund a buydown through concessions just as easily.

What I tell my clients: don’t just look at the listing price. Look at the full deal. A home listed at $375,000 with a seller willing to fund a 2-1 buydown might cost you less per month than a home listed at $350,000 with no concessions. The math matters more than the sticker price.

Why the Waiting Game Is Riskier Than You Think

I hear it every day. “I’m going to wait until things get better.” And I get it. The last few years have felt like the worst time to buy a home. But here’s what most people waiting on the sidelines aren’t thinking about.

Right now, inventory is up over 10% compared to last year. According to HousingWire, new listings recently hit one of the strongest early-season weeks since before the pandemic. Homes are sitting longer. Sellers are cutting prices. You can negotiate credits, buydowns, repairs, and closing cost coverage.

All of that leverage exists because there aren’t that many active buyers right now.

But that’s changing. Mortgage purchase applications are already up 18% year over year, according to HousingWire’s Housing Market Tracker. Lenders across the country are reporting their strongest pipelines in years. Freddie Mac’s chief economist recently said that purchase application activity is running ahead of last year and that a “solid spring sales season” is forming.

Here’s the part that gets overlooked: as more buyers come back, the negotiating power you have today starts to shrink. More demand means less time on market, fewer price cuts, fewer concessions, and more competition for the same homes.

I worked with a first-time buyer in Raleigh last spring who waited three months trying to time the market perfectly. In that time, the home she originally wanted sold for full asking price to someone else, and the replacement home she found had two competing offers. She ended up paying more and getting fewer concessions than she would have if she’d moved when the opportunity was there.

The best deals usually happen before everyone else shows up.

What You Can Actually Control Right Now

You can’t control where the economy goes. You can’t control what the Federal Reserve does. But there are a handful of things you can control, and they have a bigger impact on your deal than most people realize.

Your offer structure

In 2026, how you put your offer together matters more than just the number. A clean offer with solid financing, reasonable contingencies, and flexible closing terms can beat a higher offer that’s messy or uncertain. Talk to your agent about structuring an offer that makes the seller’s life easier.

Your concession strategy

Don’t just ask for closing cost coverage as an afterthought. Go in with a plan. Know how much concession your loan type allows. Decide upfront whether you want to use it for closing costs, discount points, a temporary buydown, or a combination. I help my clients build this into their offer strategy from the beginning.

Your lender choice

This is where working with a mortgage broker makes a real difference. I shop over 100 wholesale lenders for every client. That means I’m not limited to one bank’s pricing or one set of loan products. When you have access to more options, you can find better terms, and that strengthens your negotiating position across the board.

Your pre-approval

Walking into a negotiation without a pre-approval is like showing up to a job interview without a resume. Sellers take pre-approved buyers more seriously because there’s less risk the deal falls apart during underwriting. A pre-approval also shows you exactly what you can afford, so you’re not wasting time on homes outside your range.

If you haven’t gotten pre-approved yet, that’s the single most important thing you can do right now. Start with the mortgage readiness quiz to see where you stand, or check out the full pre-approval guide.

The Spring Window Is Real, and It Won’t Stay Open Forever

Let me be straight with you. I’m not saying you need to rush out and buy a house tomorrow. Buying a home should never be a panic decision. But I am saying that the conditions right now are more favorable for buyers than they’ve been in years, and those conditions are already starting to shift.

More listings are hitting the market. More buyers are coming back. Agents across the country are reporting increased activity heading into spring. According to a CBS News report from this month, real estate agents in markets from San Diego to the Northeast are seeing noticeably more buyer calls than they did a year ago, especially from first-time buyers.

The smart move isn’t to wait for some perfect moment that may never come. The smart move is to understand the tools available to you right now, get pre-approved, and put yourself in a position to act when the right home shows up.

Whether you’re buying in Raleigh, Tampa, or anywhere in between, the playbook is the same: know your numbers, understand your leverage, and work with someone who can help you use every tool available.

Frequently Asked Questions

What are seller concessions?

Seller concessions are costs the seller agrees to pay on the buyer’s behalf, typically at closing. They can cover expenses like closing costs, prepaid taxes, title insurance, and even discount points to reduce your monthly payment. The maximum amount a seller can contribute depends on your loan type and down payment amount. Per CFPB guidelines, concessions are limited to the lesser of the sale price or appraised value.

How much can a seller contribute toward my closing costs?

It depends on your loan type. FHA loans allow up to 6% of the purchase price. VA loans allow up to 4%. Conventional loans range from 3% to 9% depending on your down payment. USDA loans allow up to 6% of the loan amount. Your lender can walk you through the exact limits for your situation.

Is it a good time to buy a house in 2026?

The spring 2026 market is showing some of the most favorable conditions for buyers in years. Homes are sitting on the market longer, sellers are offering more concessions, and inventory is up over 10% compared to last year. That said, every buyer’s situation is different. The best way to know if it’s the right time for you is to get pre-approved and understand your actual numbers.

What is a mortgage rate buydown?

A buydown is when someone (usually the seller or builder) pays upfront to reduce your monthly mortgage payment for a set period. A 2-1 buydown, for example, lowers your payment significantly in year one, moderately in year two, and then adjusts to the full amount in year three. Buydowns can be funded through seller concessions and are a popular strategy when sellers are motivated to close.

Should I buy now or wait for the market to improve?

Waiting comes with its own risks. As more buyers return to the market this spring, the negotiating leverage you have right now starts to disappear. More competition typically means higher prices, fewer concessions, and faster sales. The buyers getting the best deals right now are the ones showing up while the market is still tilted in their favor. If you’re financially ready, it’s worth exploring your options rather than waiting for conditions that may or may not arrive.

How does working with a mortgage broker help me negotiate a better deal?

A mortgage broker shops multiple lenders on your behalf instead of being limited to one bank’s pricing. I personally shop over 100 wholesale lenders for every client to find the best combination of terms. That means more options for structuring your loan, potentially lower costs, and a stronger overall position when you’re putting an offer together.

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By Cole Brantley, NMLS# 1905939 | Licensed Mortgage Loan Originator | Mpire Financial (NMLS# 2639498)

Cole Brantley is the Head of Direct to Consumer at Mpire Financial and a licensed mortgage loan originator serving buyers in 32 states. With over 1,500 homebuyers helped to the closing table, Cole specializes in finding the right loan by shopping over 100 wholesale lenders for every client. Learn more about Cole.

This content is for educational purposes only and does not constitute financial advice. Every buyer’s situation is unique. Contact Cole Brantley for personalized guidance.