Why Denver Home Sellers Should Be Ready to Offer Concessions in 2025

Denver Home Sellers, Here’s Why Buyer Concessions Matter More Than Ever

If you’re planning to sell your home in Denver, you may be wondering: Do I really need to offer concessions to attract buyers? The short answer? Yes—at most price points, it’s more likely than not.

December data* shows that 66.6% of Denver home sales involved seller concessions, a key trend sellers should keep in mind as we move into 2025.

With even higher rates in key price ranges:

• $400K - $800K homes: 72-74% of deals included seller concessions.

• Certain areas like Aurora Highlands: A massive 92.5% of sales included seller incentives.

• Northern Thornton, Westminster, and Southwest Denver: 80-90% of homes included concessions.

• Homes competing with new construction: Many sellers had to offer rate buy-downs and incentives to compete with builders offering lower interest rates.

So, what does this mean for you as a seller in 2025? If you want to sell in today’s high-rate market, you need to be competitive.

Why Are Seller Concessions So Common Right Now?

The primary reason Denver home sellers are offering concessions at record rates is affordability challenges. Mortgage rates remain high (hovering around 7%), which means many buyers can’t afford the same homes they could a few years ago without assistance.

Additionally:

• New construction builders are offering attractive financing deals (such as interest rates as low as 4.99% or 5.99%), making it harder for resale homes to compete.

• Many buyers simply don’t have enough cash for both a down payment and closing costs.

• Larger homes or outdated properties often need incentives to encourage offers.

How Much Are Sellers Offering in Concessions?

The size of seller concessions varies by price point and location, but on average:

• $6,200 in high-demand areas with multiple offers (e.g., Evergreen)

• $15,000 - $23,000 in areas with more inventory and competition (e.g., Roxborough, Sterling Ranch, Thornton, Candelas, and Leyden Rock)

• 81% of concessions are going toward rate buydowns or buyer closing costs

In other words, concessions aren’t about discounting your home—they’re about helping the buyer afford it.

How Can Sellers Use Concessions Strategically?

Rather than just slashing your price, here are ways to structure a smart offer:

1️⃣ Offer a Rate Buydown Instead of a Price Drop

• A $10,000 seller-paid rate buydown could lower the buyer’s mortgage payment significantly—sometimes more than a $30,000 price reduction would.

2️⃣ Cover Closing Costs

• Many buyers struggle with upfront expenses. Offering to cover loan fees, title costs, and prepaids can make your home stand out.

3️⃣ Understand the Competitive Landscape in Your Zip Code

• If 80-90% of nearby homes are offering concessions, not offering one could put you at a major disadvantage.

The Bottom Line for Sellers

In today’s market, seller concessions aren’t a sign of desperation—they’re a smart strategy to sell faster and attract serious buyers.

If you’re thinking about selling, I can help you navigate these trends and position your home competitively.

Curious about what your home is worth in today’s market? Let’s chat!

*Provided data: First American Title Insurance Company