Negotiation Is Returning to the Housing Market, and That Changes the Conversation

For several years, limited inventory gave many sellers the ability to hold firm on price and terms. Buyers often had little room to negotiate, especially when multiple offers were competing for the same property.

That dynamic is beginning to change. As buyers gain more choices and affordability remains a concern, negotiations are becoming a more meaningful part of the transaction. Sellers and builders are increasingly using concessions and incentives to keep qualified buyers engaged and help deals move forward.

For buyers and sellers in North County San Diego, this does not mean every property is suddenly negotiable. It means the structure of the offer matters more than it did when sellers could dictate nearly every term.

Concessions and Incentives Serve Different Purposes

A concession is something a seller agrees to during negotiations to help complete the transaction. It may include assistance with closing costs, a repair credit, or another adjustment that reduces the buyer’s upfront expenses.

An incentive is generally offered in advance to attract interest. Builders commonly use incentives such as mortgage-rate buydowns, price adjustments, upgraded finishes, or appliance packages.

Both can create value, but they should be evaluated as part of the entire transaction rather than viewed as isolated discounts.

Recent Redfin data shows that approximately 46% of home sellers provided a concession in May 2026, the highest May share in the company’s records. About 16% of sales included both a price reduction and a concession.

That change reflects a market where buyers have more leverage than they did during the most competitive years. A seller may agree to cover part of the closing costs, address an important repair, or provide a credit that helps protect the transaction.

For buyers, this creates an opportunity to negotiate around their most important needs. For sellers, it reinforces the importance of considering the overall strength of an offer instead of focusing only on the headline price.

Builders Are Competing for Buyers Too

Bottom Line

The return of negotiation creates opportunity on both sides of the transaction. Buyers may have more room to request assistance with price, closing costs, repairs, or financing. Sellers may use that flexibility to attract qualified buyers and protect the larger outcome of the sale.

In North County San Diego, the strongest results come from understanding where leverage exists and structuring the transaction around the priorities that matter most.

With Shafran Realty Group currently ranked No. 51 nationwide, No. 20 in California, and No. 2 in San Diego for 2025, this market perspective is grounded in real local activity, buyer behavior, and North County trends.

That is where Shafran Realty Group comes in. With more than 35 years of experience in finance and real estate, Alan Shafran has built a reputation as one of the most respected names in Coastal North San Diego County. Recognized by The Wall Street Journal as one of the top 100 Realtors nationwide, he has also been ranked No. 1 in San Diego County and No. 5 in California.