Your Tri-Cities home is on the market and buyers aren't responding the way you expected.

Now you're looking at two options:

Should I lower the price, or should I offer buyer concessions instead?

Those aren't necessarily the same strategy.

A price reduction changes what buyers see when they're searching for homes.

A seller concession can help solve a buyer's financial problem, such as closing costs or, depending on their loan and lender, potentially reducing their interest rate.

So before we automatically start cutting the price, I want to know:

What problem are we actually trying to solve?

I'm Kim Feliciano, a REALTOR® in the Tri-Cities helping buyers and sellers in Richland, Kennewick, Pasco, West Richland and Benton City.

This question matters even more when buyers have plenty of homes to compare.

Sometimes the price needs to change.

Sometimes a concession could be more useful.

And sometimes neither one fixes the real reason buyers aren't choosing the house.

Let's figure that out first.

What Is a Seller Concession?

A seller concession generally means the seller agrees to contribute toward certain buyer costs as part of the transaction.

Exactly what the buyer can use that money for depends on the buyer's financing, lender requirements, loan program and the terms of the transaction.

It may potentially help with eligible closing costs or other allowable expenses.

In some situations, a buyer may be interested in using seller contributions as part of an interest-rate strategy through their lender.

That's where I bring the lender into the conversation.

I'm your REALTOR®.

I'm going to help with the real estate strategy, offer structure and what the numbers mean to you as the seller.

The buyer's lender determines what financing options are available and what seller contributions are allowed.

A Price Reduction and a Concession Do Different Things

This distinction is important.

Suppose your house is listed at $450,000.

You could reduce the asking price.

Or you could potentially keep the asking price where it is and advertise that you're willing to consider a seller concession.

Those choices communicate different things to buyers.

The price affects where your house appears in searches and how buyers compare it with competing properties.

A concession may help a buyer deal with the cash or financing side of the purchase.

So the question isn't simply:

“Which one costs me less?”

It's:

“Which one addresses the reason buyers aren't moving forward?”

When a Price Reduction May Make More Sense

Let's say buyers are consistently telling us:

“We like it, but not at this price.”

Or maybe they're not saying anything at all.

They're simply choosing other homes.

Now I'm looking closely at the data.

What has sold?

What's pending?

What's newly listed?

What are similar homes priced at?

How does your house compare in condition?

How many showings are we getting?

Are people viewing the listing online but not scheduling showings?

Are we getting showings but no offers?

Those patterns matter.

If the market is consistently telling us the house isn't positioned correctly on price, offering a concession may not solve that.

A Concession Doesn't Fix an Overpriced House

This is one of the biggest things I want sellers to understand.

Let's say comparable homes are selling around $425,000 and we're trying to sell yours for $475,000.

Offering a few thousand dollars toward buyer closing costs doesn't magically make the house worth $475,000.

Buyers can see the other listings.

Their agents can see the sales.

An appraiser will eventually look at market data too if the buyer is financing the purchase.

A concession can be a useful tool.

It's not a disguise for a pricing problem.

When a Concession Might Be More Useful

Now let's look at a different situation.

Suppose your house is reasonably positioned against the competition.

Buyers like it.

We're getting activity.

But we're hearing something different:

“I don't have enough cash for closing.”

Or:

“The monthly payment is just a little too high.”

Now a concession may deserve a closer look.

The same dollars that barely change a buyer's monthly payment through a small price reduction might potentially be structured differently through the buyer's lender.

That doesn't mean a concession is automatically better.

It means we have a different problem to solve.

A Small Price Reduction May Not Change the Buyer's Payment Very Much

This surprises some sellers.

Let's say you're considering reducing the price by $5,000.

A buyer financing the purchase isn't necessarily saving $5,000 in cash today.

Their loan amount may simply be slightly smaller.

Depending on their financing, that may result in a relatively modest change to their monthly principal and interest payment.

What if that buyer instead needs help with allowable closing costs?

Or what if their lender has an option where seller contributions could be used toward an eligible rate buydown?

Now the buyer may look at the same dollars differently.

This is why I don't want to guess.

We get the lender involved and compare actual scenarios.

Seller Concessions Aren't Free Money

If you're the seller, you're still paying for the concession through the transaction.

So I don't want to talk about concessions like they're painless.

They're part of your proceeds.

If you sell for $450,000 and agree to a $10,000 seller contribution, I care about what that does to your estimated net.

That's why I prepare a seller net sheet.

I want you looking at the whole transaction, not getting distracted by one number.

The Highest Offer Isn't Always the Best Net

This comes up all the time when we're evaluating offers.

Imagine two offers.

One has a higher purchase price but asks for a significant seller concession.

Another has a slightly lower price but asks for less from you.

Which one is better?

I can't answer that from the purchase price alone.

We need to calculate it.

Then we also need to look at:

Financing.

Contingencies.

Closing date.

Inspection terms.

Appraisal considerations.

Your timeline.

Other requested seller costs.

The buyer's overall positioning.

Highest price doesn't automatically mean strongest offer.

I care about what the offer actually does for you.

What If a Buyer Asks Me for $10,000?

This is where sellers sometimes have an immediate emotional reaction.

I understand it.

You see:

Seller to pay $10,000 toward buyer closing costs.

And your first thought may be:

“Absolutely not. Why would I give them $10,000?”

My question is:

What's the alternative?

Do we have another offer?

Has the house been on the market for two days or two months?

Is the buyer paying a price that supports the request?

Does the appraisal concern us?

What would you net?

What happens if we say no?

Could we counter with a smaller amount?

Could we change another term?

If this is the one thing separating you from the move you want to make, let's evaluate it in context.

You still decide.

What Does the $10,000 Allow You to Do?

This is the seller side that sometimes gets missed.

Maybe accepting the concession allows you to:

Close on your next home.

Relocate for your job.

Stop making payments on a vacant property.

Get out of a contingent situation.

Avoid another month of carrying costs.

Complete the sale you've been working toward.

I'm not saying that means you should automatically give a buyer $10,000.

I'm saying the question is bigger than:

“Why should I give the buyer money?”

Sometimes the better question is:

“What does agreeing to this allow me to accomplish?”

What If I Just Wait for Another Buyer?

You can.

It's your house.

But waiting is still a decision with potential costs.

Mortgage.

Insurance.

Utilities.

Maintenance.

Taxes.

HOA dues if applicable.

Another month before your next move.

And there's no guarantee the next buyer won't ask for a concession too.

That doesn't mean you accept an offer you don't like.

It means we compare the offer in front of you with the realistic alternatives.

Buyers Have More Choices

When inventory rises, sellers need to pay attention to competition.

A buyer may be comparing your resale home with another resale property down the street.

They may also be comparing it with new construction.

That matters because builders can sometimes advertise financing incentives, closing-cost assistance or other promotions.

You don't necessarily need to copy the builder.

But we can't pretend the buyer isn't seeing those options.

If a buyer can choose between several homes, the total financial picture becomes part of the competition.

Should I Advertise a Seller Concession Upfront?

Possibly.

But I wouldn't automatically do it.

First, I want to know what we're trying to accomplish.

Maybe offering a concession helps your property stand out to buyers who are struggling with cash to close.

Maybe there's a financing strategy worth highlighting with the appropriate lender guidance.

Maybe we don't need it at all.

Maybe the bigger issue is price.

Maybe the house needs better presentation.

Maybe we need to change something else in our marketing.

The concession should have a job.

I Evaluate My Listings Every Week

I don't want your listing sitting online for a month while we cross our fingers.

I'm looking at the property every week.

Showings.

Views.

Shares.

Impressions.

Advertising analytics.

Online leads.

Buyer-agent feedback.

New listings.

Pending sales.

Price reductions.

Competing homes.

What's actually selling.

If buyers are responding, great.

If they aren't, I want to know why.

There's no need to wait 30 days to pivot when the signs were already there weeks ago.

Online Views but No Showings Tell Us Something

Let's say thousands of people are seeing the property online.

But very few are scheduling a showing.

That's information.

It could mean buyers don't see enough value to take the next step.

Maybe it's price.

Maybe it's presentation.

Maybe it's the photos.

Maybe another property characteristic is turning them away.

A concession buried in the listing remarks may not fix that.

We need to diagnose the actual issue.

Showings but No Offers Tell Us Something Different

Now let's say buyers are coming through the door.

Plenty of them.

But nobody writes an offer.

That's a different pattern.

Maybe buyers like the house online but don't feel the same way once they're inside.

Maybe condition is affecting their perception.

Maybe the home doesn't compare well with similarly priced properties.

Maybe we're consistently hearing the same objection.

That's why I don't treat every slow listing the same way.

The data helps us decide what to change.

No Feedback Is Feedback Too

Sometimes sellers want every buyer's agent to tell us exactly why their client didn't buy the house.

That would be nice.

It doesn't always happen.

I follow up.

But if buyers repeatedly tour the house and don't write offers, that behavior itself gives us information.

No feedback is feedback.

I'm looking for patterns, not waiting for one buyer to give us the perfect explanation.

Scenario: Your House Is Getting Almost No Showings

Let's say we've been listed for a couple of weeks.

Online exposure is there.

The marketing is working.

People are seeing the property.

But they're not coming through the door.

Now you ask:

“Should we offer $10,000 toward closing costs?”

Maybe.

But first I want to look at price.

If buyers aren't even interested enough to schedule a showing, we may have a positioning problem that a concession doesn't solve.

A meaningful price adjustment might put the home in front of a different group of buyers or make it more competitive with the properties they're already choosing.

Scenario: Buyers Love the House but Need Cash

Different situation.

We're getting showings.

Feedback is positive.

Maybe we even have an offer.

The buyer likes the property, but cash to close is the issue.

Now a seller concession may be much more relevant.

Instead of automatically lowering the price, we can look at what the buyer is asking for, what their lender allows and what the transaction nets you.

Same house.

Different problem.

Different strategy.

Scenario: You're Competing With New Construction

Let's say your resale home is competing with a nearby new construction community.

Your home may have advantages.

Established landscaping.

Fencing.

Blinds.

A larger lot.

A finished backyard.

Maybe appliances are already there.

But the builder is advertising a financing incentive.

A buyer may be looking at monthly payment and cash to close, not just purchase price.

Now I want to understand that competition.

Maybe a concession helps us compete.

Maybe our price needs to change.

Maybe we need to do a better job showing buyers the value already included with your home.

There's no automatic answer.

Scenario: You Receive One Offer After Several Weeks

Your home has been listed for a while.

You finally receive an offer.

The buyer asks for $10,000 toward closing costs.

You're annoyed.

Fair enough.

Now let's look at the actual numbers.

What's the purchase price?

What's your estimated net?

What are your carrying costs if you stay on the market another 30 days?

What's happened with competing listings?

How much buyer activity are we seeing?

What are the chances another buyer makes a materially stronger offer?

We can't guarantee what happens next.

But we can compare the offer we actually have with the current market information.

Then you decide.

Don't Forget About the Appraisal

Seller concessions don't make appraisal considerations disappear.

If the buyer is financing the purchase, the appraisal may be part of the transaction.

An appraiser is looking at market data and the property.

Before becoming a REALTOR®, I worked as a mass appraiser.

That background is one of the reasons I'm naturally curious about the data behind a property and not just the number we want to see.

I'm not performing an appraisal for you when I'm acting as your REALTOR®.

But I do want to understand whether our pricing and offer structure make sense in relation to the available market information.

Price Reductions Can Change Who Sees Your House

Here's another practical difference between the two strategies.

Buyers often search within price ranges.

A price adjustment can potentially move your home into another buyer's search parameters.

For example, a buyer whose maximum search is set below your current list price may never see the property in their normal search results.

A seller concession doesn't necessarily change that initial list-price filter.

That's one reason a price reduction can sometimes accomplish something a concession can't.

But Don't Make Tiny Price Reductions Just to Say We Reduced It

If we're going to change the price, I want the change to have a purpose.

I'm not interested in shaving a tiny amount off the price every week just so the listing shows a reduction.

Where does the new price position us?

What competition are we trying to beat?

Does it move us into another search range?

Does it meaningfully change how buyers compare the house?

What's the strategy?

Every change should have a reason.

Common Mistakes Sellers Make With Price Reductions and Concessions

One mistake is assuming a concession can fix an overpriced house.

Another is assuming a price reduction is always better than helping a buyer with cash to close.

Another is looking only at the offer price instead of the seller's estimated net.

Another is refusing a concession without asking what the alternative looks like.

Another is agreeing to a concession without confirming that the buyer can actually use it as intended.

Another is ignoring new construction incentives when those homes compete for the same buyers.

Another is waiting too long to respond to clear market feedback.

Another is making random price reductions without a strategy.

And one of the biggest mistakes is changing something before figuring out what problem you're actually trying to solve.

FAQ: Price Reduction vs. Seller Concessions in Tri-Cities, WA

Is it better to lower my home's price or offer closing costs?

It depends on why buyers aren't moving forward. A price reduction can change how your home competes and which searches it appears in. A concession may be more useful when a buyer needs help with allowable closing costs or financing-related expenses.

What are seller concessions?

Seller concessions are amounts a seller agrees to contribute toward certain allowable buyer costs as part of a negotiated transaction. The buyer's loan program and lender determine what is permitted and how those funds can be used.

Can seller concessions be used to lower the buyer's interest rate?

Potentially, depending on the buyer's financing and lender. The buyer should discuss available rate-buydown options and allowable seller contributions directly with their lender.

Do seller concessions reduce what I make on the sale?

They can affect your net proceeds. That's why I want to calculate the entire offer rather than looking only at the purchase price.

Should I offer closing costs before I receive an offer?

Sometimes it can be a useful marketing strategy, but I wouldn't do it automatically. First determine whether a concession addresses an actual buyer concern and fits your overall positioning.

What if my home is getting views but no showings?

That's a signal worth investigating. Price and positioning may be part of the issue, but we should also look at presentation, competition and how buyers are responding to the listing.

What if I'm getting showings but no offers?

Look for patterns in buyer behavior and feedback. If buyers repeatedly tour the property but choose other homes, we need to understand how your home compares in price, condition and overall value.

How quickly should I lower my price if my house isn't selling?

I don't use one arbitrary number of days for every property. I evaluate my listings weekly and look at activity, online analytics, showings, feedback and competing sales before recommending a change.

Solve the Right Problem

This is where I want to bring the whole conversation back.

Your house isn't getting the response we expected.

We have options.

Maybe we lower the price.

Maybe we offer a concession.

Maybe we change another part of the strategy.

But I don't want to start throwing money at the problem before we understand it.

Before we automatically cut your price, I want to know what problem we're trying to solve. Do we need to change the price buyers see online, or would the same dollars be more useful helping the buyer actually afford the house?

Sometimes the market is telling us:

“The price is too high.”

Listen to that.

Sometimes the buyer is telling us:

“I like the house. I need help making the numbers work.”

That's a different conversation.

And sometimes the problem isn't price or concessions at all.

That's why I evaluate my listings every week.

I'm Kim Feliciano, a REALTOR® in the Tri-Cities helping buyers and sellers in Richland, Kennewick, Pasco, West Richland and Benton City.

It's your house.

You decide whether to reduce the price, offer a concession, counter an offer or stay where you are.

My job is to show you the data, help you understand the tradeoffs and keep your actual goals at the center of the decision.

If your house is already on the market and you're wondering what to change, or you're getting ready to sell and want to build the strategy before we list, let's look at the numbers together.

Book a time with me here.

Kim Feliciano
Tri-Cities, WA REALTOR®

Helping buyers and sellers navigate the housing market in:

Richland
Kennewick
Pasco
West Richland
Benton City

Website: www.heykimfeliciano.com
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