Concessions That Win Deals Without Losing Value

What Are Concessions in Real Estate?

In real estate, a concession is anything one party agrees to give, cover, or modify to make the deal more attractive. These might include:

• Seller paying a portion of closing costs
• Buyer waiving certain contingencies
• Seller covering repair costs or credits
• Adjusting timelines to accommodate the other party
• Including appliances or furniture
• Offering rent-backs or occupancy before closing

But the key is this: concessions aren’t signs of weakness — they’re signs of strategy. When used wisely, they increase the likelihood of a deal without compromising perceived value.

The Psychology Behind Strategic Concessions

Concessions are powerful because they tap into one of the deepest drivers of human behavior: reciprocity. When someone gives something, we feel compelled to respond in kind — this is how relationships and negotiations move forward.

But here’s where smart negotiators separate themselves: they only make concessions that are intentional, timed, and psychologically positioned to maintain strength.

Framing Matters More Than Content

Consider this scenario:

• Option A: “We’ll reduce the price by $10,000.”
• Option B: “We’re willing to offer $10,000 in credit to help cover closing costs and repair items, to make your transition smoother.”

Both options cost the seller the same. But Option B frames the concession as a thoughtful gesture, not a weakness — and keeps the anchor price high, protecting market perception.

When to Offer Concessions (and When Not To)

Timing is everything in real estate. Too early, and your concession becomes the new baseline. Too late, and it seems like a desperate Hail Mary.

Here’s how we advise our clients:

Ideal Times to Offer a Concession:

• To seal a deal that’s close to falling apart: A small give can rescue a negotiation on the brink.
• In competitive situations where emotional value outweighs dollars: Offering favorable terms (like a quick close or rent-back) can tip the scale.
• When appraisals come in low: Instead of lowering price, offer to cover a small gap in appraisal.
• When inspection reveals defects: Offering credits instead of repairs avoids delays and protects perceived value.

When NOT to Offer Concessions:

• Right after listing or showing: Hold your position until buyer interest proves serious.
• Without data or strategy: A concession without context reduces negotiating power.
• As a first move: Always allow the other party to make the first ask.

Smart Concessions Buyers Can Use

If you’re a buyer in San Diego — especially one working with a strong agent like Darin Triolo — here’s how you can use concessions to stand out in a competitive market:

1. Waive Minor Contingencies Strategically

Waiving a termite clearance or shortening the inspection period (with your agent’s advice) can make your offer more attractive without adding risk.

2. Offer Flexible Closing Dates

Sellers value ease. Offering to close on their timeline can be worth more than a few extra thousand dollars.

3. Rent-Back Offers

In low-inventory markets, letting the seller stay post-closing for a few days or weeks (at low or no rent) provides peace of mind — and can secure the deal even if you’re not the highest bidder.

4. Precise Offers Over Rounded Numbers

Odd-numbered offers (e.g., $1,017,000 instead of $1,000,000) feel researched and intentional, often giving your proposal more psychological weight.

Smart Concessions Sellers Can Use

Triolo Realty has worked with hundreds of sellers across San Diego County, from coastal condos to Rancho Santa Fe estates.

Here’s how:

1. Repair Credits Instead of Repairs

Rather than fixing things yourself, offer a credit. Buyers often overestimate repair costs — you stay in control of the budget.

2. Cover Partial Closing Costs

Covering $5,000 of a buyer’s costs — in exchange for a higher price or quick close — is often a net win.

3. Include Non-Essentials

Throwing in appliances, mounted TVs, or patio furniture can tip the scales in your favor — especially when buyers are emotionally attached.

The Art of the Give-and-Take

Effective concessions follow this formula:

Give only when you get.
Every concession should come in exchange for something — whether it’s a shorter timeline, higher offer, waived contingency, or cleaner escrow.

This ensures your position remains strong, your negotiation feels reciprocal, and your value is preserved.

Case Study: Preserving Value with a Strategic Concession

A recent Triolo Realty client was selling a North Park home listed at $1.1M. After inspection, the buyer requested a $15,000 reduction due to minor plumbing and electrical issues.

Rather than lowering price, we:

• Offered a $7,000 credit
• Threw in the backyard BBQ set (already being moved)
• Negotiated a quicker close to match the buyer’s relocation needs

The buyer accepted. The home appraised at full value. And the seller kept $8,000 they would have otherwise lost.

That’s the power of smart concessions.

Concessions Without Weakness: Rules to Remember

• Never lead with a concession
• Always attach a “get” to every “give”
• Use framing to position the concession as a gesture, not a compromise
• Protect the sales price anchor whenever possible
• Know the data — let comps, timelines, and urgency guide your strategy

How We Can Help

At Triolo Realty, we’ve built our reputation on helping both buyers and sellers maximize value without unnecessary compromise. Led by Darin Triolo, who has outperformed the MLS for over 15 years, our team uses a powerful combination of psychology, strategy, and real-time data to structure deals that benefit our clients — without sacrificing their position.

Whether you’re buying in a competitive zip code or selling a luxury property in San Diego, we’ll show you how to use concessions as tools of strength — not signs of surrender.

Let’s talk strategy. Reach out today for a free consultation and learn how to win your next deal without losing value.