Concessions over price cuts at 7.25%

The Number

Of purchase price. Seller concessions, now standard across nearly every offer

Sellers gave concessions in 44.7% of U.S. home sales in August. Almost every offer we're writing right now asks sellers to cover closing costs, points, or lender credits to offset the 7.25% mortgage rate. Buyers who win are not asking for the lowest price. They're asking for the maximum seller concession and then comparing payment, not sticker.

Here's the math: a rate buydown saves more monthly payment relief than a price cut of the same amount. A $50K price reduction and a $50K seller concession for points both cost the seller the same, but the buyer feels the payment difference every single month for 30 years. That's why smart sellers are budgeting concessions, and that's why buyers are asking for them.

What We're Seeing

Seller Preparation

Smart sellers are budgeting concessions before listing

Here's the reality: if you take $50K off price or offer $50K in concessions, you net the same. The buyer and the market see different things, but your check clears the same either way. This market used to reward sellers who held firm on price and let buyers compete. That's over. Now the sellers who close fast are the ones who've already decided: we're either pricing sharp on day one and budgeting for concessions, or we're pricing and offering a rate buydown ourselves as a listing incentive. Sellers who resist this math are watching inventory sit and then cutting price anyway, giving away both the $50K and the time. The ones who move it? They decided upfront what their net is, structured it clearly, and closed.

What We're Loving

National

7.25%

Mortgage rates climbed this week, highest in over a year

The 30-year mortgage was sitting at 7.04% on Tuesday; by Thursday it had jumped to 7.25%. The Federal Reserve hiked on September 16, raising its benchmark rate to 3.75%-4% (the first increase in three years), and signaled another quarter-point move is likely before year end. Mortgage rates track longer-term Treasuries and market expectations, not the Fed rate directly. Inflation remains elevated, energy prices are high on geopolitical shocks, and the bond market is pricing in persistent rate risk.

At 7.25%, borrowing costs are not the constraint on deals anymore. Strategy is. Buyers are solving the payment problem with seller help instead of lower purchase price. Sellers who understand this and budget for concessions are closing. Sellers who resist are watching offers walk or sit.

Seattle & King County

43,000

Square feet GM is leasing at West8 in Denny Triangle, opening early 2027

General Motors announced this week that it's leasing 43,000 square feet at West8 (2001 8th Ave) in Denny Triangle, just two blocks from Amazon's headquarters and the Spheres. The office opens early 2027 and will consolidate roughly 200 remote workers already scattered across the Puget Sound region, with plenty of room to expand. The company is hunting AI and machine learning engineers, the talent pools Seattle has been building for twenty years in cloud, infrastructure, and autonomous systems.

On the local market: King County's median residential sale price fell to $920,000 in August, down 7% year over year. Active listings stayed elevated at 33% above last year's count, and only 16% of homes sold above asking price. Buyers have leverage now, especially in condos and townhomes. Well-priced homes in strong neighborhoods still move quickly, but overpriced inventory sits longer.

This Week in Seattle

Active Listings

Worth Reading

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Henry H. Shim & Akash S. Sandhu

Henry Shim Group

Henry Shim Group · Windermere Real Estate Midtown · 1920 N 34th St, Seattle, WA 98103
All data sourced from NWMLS, Redfin, Zillow, Mortgage News Daily, NAR, or as otherwise cited. Not financial or legal advice. Equal Housing Opportunity.