Sellers Are Handing Out Free Money: Here’s How to Save Big

• Hidden Savings •

Major incentives are up for grabs in the San Diego real estate market right now, as some Sellers offer serious perks to get their homes sold. We’re talking about real money, tens of thousands in potential savings, if you know how to spot the right opportunities.

These incentives are strategic moves designed to give you an edge in today’s market, where higher inventory means Sellers need to stand out and Buyers have room to negotiate. Many motivated Sellers are finding creative ways to sweeten the deal besides lowering the price, like interest rate buydowns and closing cost credits.

⚠️Disclaimer: Price cuts don’t guarantee a deal. Even with price reductions, some neighborhoods in the San Diego real estate market remain competitive. Homes in prime locations or premium condition are still receiving multiple Offers and can sell relatively quickly. 

Knowing where to look and how to leverage these offers can make a big difference in what you pay, and how confident you feel about your purchase.

Over Half of Sellers Are Offering Buyer Incentives

Right now, about 60% of Sellers in San Diego are offering Buyer concessions. That’s nearly two out of every three homes. More perks are popping up as motivated Sellers look for creative ways to stand out. These incentives can include:

• Closing cost credits

• Mortgage rate buydowns

• Repairs or upgrades

• Flexible move-in timelines

In a market where home prices are holding firm, these incentives could be the easiest way to save money on your next home. Think of these as built-in perks that you can negotiate into your Offer if you know where to look.

Closing Cost Credits Cover More Than You Think

Asking for closing cost credits can unlock thousands of dollars in savings. These credits open the door to big wins in the San Diego real estate market, where some Sellers are willing to chip in to get deals done. It’s less about cutting corners and more about spotting where Sellers are ready to cover key costs for you.

Closing cost credits can stretch far beyond the basics. They can cover interest rate buydowns, escrow and title fees, appraisal and underwriting costs, even prepaid taxes and upfront insurance premiums. When you know how to negotiate these credits, you can turn what’s often overlooked into a powerful advantage that puts more money back in your pocket.

How An Interest Rate Buydown Saves You Money

An interest rate buydown is when the Seller pays to lower your mortgage interest rate, which can significantly cut your monthly payment. Even a 1% drop in rate can add up to thousands in savings over time, giving you more buying power and flexibility. It’s one of the simplest ways for a Seller to offer real, upfront value without reducing the asking price.

There are different types of buydowns, including 3/2/1 and 2/1 structures, where your rate steps down for the first few years before returning to its original level. Some buydowns like these are temporary, while others create a permanent rate change that lasts the life of the loan. Right now, many Sellers are willing to cover these costs to seal the deal. When you know how to negotiate them, an interest rate buydown can make your path to homeownership a lot smoother.

Sellers Are Offering Credits for Repairs or Upgrades

Some listings come with a few rough edges, and many of those Sellers are increasingly willing to entertain a repair credit to smooth them out.

Buyers are negotiating repair credits for everything from damaged flooring and broken appliances to outdated HVAC, electrical, or plumbing fixes. These credits can also go toward hardware replacements, roof repairs, or even termite treatments, giving you more flexibility during closing.

Instead of paying for these fixes after closing, a repair credit reduces the amount you bring to the closing table on settlement day. This keeps more cash in your pocket upfront, while still giving you the freedom to tackle repairs or upgrades on your own timeline.

Flexible Move-In Timelines Give You More Leverage

Sellers know that timing your move can make or break a deal, and many are now willing to offer flexible move-in terms to meet your timeline. This might include extended contingency periods, rent-back options if you’re juggling the sale of another property, or extra time to line up with ending your lease or starting a new school schedule.

With the right strategy, these flexible timelines can give you the breathing room you need without adding extra costs. They can also reduce your stress and hassle coordinating moving trucks, overlapping mortgage payments, or rushing to close on both ends. When you’re selling your current home and buying a new house at the same time, this flexibility can mean negotiating better terms without feeling pressured by strict deadlines.

It’s a win-win approach that keeps the entire process smooth and manageable on your terms.

What Are the Limits on Seller Concessions

There are a few rules about how far Seller concessions can go. For starters, they can’t be applied to your down payment or taken out as cash. Concessions are meant to reduce your upfront costs for non-recurring things like closing fees, prepaid taxes, and interest rate buydowns. These credits are designed to lower your amount due at closing, rather than pad your pocket.

The maximum concession amount also depends on the loan type you’re using. VA loans cap Seller concessions at 4% of the purchase price, regardless of your down payment. FHA loans allow up to 6% of the purchase price. Conventional loans max are tiered: 3% if you’re putting less than 10% down, 6% with 10–25% down, and up to 9% with 25% or more down. Knowing these limits helps you structure your Offer to get the most value possible without running into surprise loan restrictions later on.

Why Waiting for a Price Drop Could Backfire

Some Buyers are still sitting on the sidelines, hoping for San Diego home prices to fall. But here’s the thing: Sellers are adjusting and enhancing their terms now, beyond mere price adjustments. That means waiting could cost you access to better financing, fewer competing Offers, and more leverage at the negotiation table.

The window is open, but it won’t stay this way forever. As interest rates shift and market conditions tighten, more Sellers may start pulling back on the concessions we’re seeing right now. Acting sooner rather than later can give you a stronger position and real savings that may not be available in a few months.

Home Price Appreciation Works While You Sleep

Real estate is one of the few investments that builds wealth in the background. Even when you’re not thinking about it, home price appreciation is stacking equity like hundred-dollar bills piling up on your nightstand.

By getting in now, you’re setting yourself up to ride the next wave of home price appreciation rather than chasing the market as prices continue to climb. Every month you wait to invest your down payment into a property could mean losing out on thousands of dollars in future equity.

The Bottom Line: Seller Incentives Return

Don’t leave free money on the table. This is one of the most negotiable markets we’ve seen in years, but scoring the right deal takes more than just luck. You need a savvy REALTOR® who knows how to structure competitive Offers that unlock Seller incentives. Work with your Lender and a local real estate agent to tailor rate buydown options based on your purchase price.

There are serious benefits available right now for savvy Buyers who play it smart. Spot hidden value in listings that others might overlook. You may be able to negotiate lower monthly payments, covered closing costs, repair credits, or flexible terms that pull more results into your San Diego home search.

If you’re thinking about buying this year or want to buy a home in San Diego with incentives, let’s talk. I’ll walk you through real scenarios based on current market conditions and show you exactly how to stretch your buying power. Reach out to Portia at 858.880.0195 or email portia.green@compass.com to uncover the best opportunities waiting for you.

Sources: 

https://nsdcar.stats.10kresearch.com/reports

https://apnews.com/article/real-estate-housing-mortgage-rates-home-prices-c845172a7bcb8b5866dc4802361caf9e

https://www.axios.com/local/san-diego/2025/05/21/san-diego-home-sellers-concessions-buyers

https://www.nar.realtor/sites/default/files/2024-09/consumer-guide-seller-concessions-2024-09-24.pdf

https://www.nar.realtor/magazine/real-estate-news/sales-marketing/how-home-sellers-can-use-concessions-to-get-to-closing

https://www.fhfaoig.gov/sites/default/files/Temporary-Interest-Rate-Buydowns-Dashboard.pdf

https://www.originpoint.com/resources/2-1-buy-down-program

https://www.bankrate.com/real-estate/how-much-does-it-cost-to-move/

https://finance.yahoo.com/news/seller-incentives-arent-cutting-it-as-homebuyers-struggle-with-affordability-183501654.html

https://www.veteransunited.com/futurehomeowners/what-is-the-va-seller-concession-rule/

https://www.fha.com/fha_article?id=1948

https://selling-guide.fanniemae.com/sel/b3-4.1-02/interested-party-contributions-ipcs#P2501

https://www.originpoint.com/resources/mortgage-affordability

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