Seller Concessions: A Smart Strategy To Get Your San Francisco Condo Sold

The San Francisco real estate market is experiencing a split reality. While the single-family home market remains strong and firmly in a seller’s market, condos are facing a different landscape. Year-over-year, condo sales have dropped by 28%, and there is currently 4.9 months of inventory available. With more choices for buyers and slower sales, condo sellers need to be strategic to stand out. One of the most effective tactics? Offering seller concessions.

What Are Seller Concessions?

Seller concessions are incentives that make a property more appealing to potential buyers. These can help bridge the gap between what a buyer can afford and what a seller wants for their property. In a slower market, concessions can be the difference between a condo sitting on the market for months and securing a sale.

Common Seller Concessions

1. Covering Closing Costs – Buyers often have significant upfront expenses, including down payments, inspections, and moving costs. Offering to cover some or all of the buyer’s closing costs can make purchasing your condo more financially feasible.

2. Adjusting the Price – A price reduction is a straightforward way to attract buyers. If your condo is priced slightly above what buyers are willing to pay, reducing it to meet market expectations can generate more interest.

3. Buying Down the Mortgage Interest Rate – With higher interest rates impacting affordability, sellers can offer to buy down the buyer’s mortgage rate for the first year or the life of the loan. This effectively lowers the buyer’s monthly payment, making your condo a more attractive purchase.

How Do Seller Concessions Help You?

In a market with more inventory and fewer buyers, seller concessions can:

• Make Your Condo Stand Out – In a competitive condo market, offering incentives can capture buyers' attention and differentiate your unit from similar listings.

• Attract More Buyers – Concessions make it easier for buyers to afford a home, increasing your pool of potential buyers.

• Speed Up the Sale – Instead of waiting months for the right offer, concessions can encourage a quicker closing.

• Help You Net a Higher Price – Rather than dropping your price significantly, strategic concessions can keep your sale price closer to your target while making the deal more appealing to buyers.

Final Thoughts

If you’re selling a condo in San Francisco, understanding the current market conditions is key to crafting a winning strategy. With inventory levels up and sales down, offering concessions can be a smart move to attract buyers and close the deal. If you're considering selling and want to discuss the best approach for your situation, let’s connect!

Thinking of selling your condo? Let’s strategize together to maximize your sale. Reach out today!