If you're listing a home in Portland, Salem, Eugene, Bend, or Medford this fall, expect at least one buyer to ask for money back at closing. It might be a credit toward closing costs, a repair allowance after the inspection, or help buying down their mortgage rate. With rates above 7% and buyers taking their time, these requests have become a normal part of the negotiation.
Handled well, a concession can save a deal without costing you more than a price cut would. Handled poorly, it can leave money on the table or run into loan rules that sink the sale. This guide explains what concessions are, how a temporary rate buydown works, what the major loan programs allow, and how to negotiate them on your terms.
Why Buyers Are Asking for Concessions Right Now
Financing is expensive. Freddie Mac's 30-year fixed average was 7.40% as of October 15, 2026, up from 6.27% a year earlier. Buyers who can't change the rate are looking for other ways to lower their cash to close or their first-year payments.
Sellers are saying yes more often. Redfin reported that sellers gave concessions in 44.7% of U.S. home sales in the three months ending August 2026, up from 42.6% a year earlier and the highest share for that period since at least 2020. In the Portland metro area, the share was 54.5%, more than half of the deals in Redfin's data. Those figures come from transactions handled by Redfin's own buyers' agents, so treat them as a strong signal, not a count of every sale.
Buyers also have more choices. RMLS's September 2026 Market Action report for the Portland metro showed 4.2 months of inventory, up from 3.8 months a year earlier, and total market time of 68 days. Pending sales fell 17.9% from September 2025. When buyers can walk away and see the next house, they negotiate harder.
What Counts as a Seller Concession
Redfin defines a concession as something the seller provides that lowers the buyer's total cost of buying the home, such as money toward repairs, closing costs, or a mortgage-rate buydown. A price reduction is not a concession, even when it comes out of a negotiation.
In practice, Oregon sellers are usually asked for one of these:
- Closing-cost credit: a set dollar amount the seller pays toward the buyer's loan fees, title and escrow charges, or prepaid items.
- Repair credit: money in place of repairs after the home inspection. Check with the buyer's lender first, because some loan programs treat repair allowances differently from closing-cost credits.
- Rate buydown: the seller pays to lower the buyer's interest rate, either permanently (through discount points) or for the first year or two.
- HOA dues: Fannie Mae allows an interested party to cover up to 12 months of the buyer's HOA assessments after closing as a financing concession.
Whatever the form, the credit goes in writing. It belongs in the sale agreement or a signed counteroffer or addendum, and it shows up on the Closing Disclosure.
How a Temporary Rate Buydown Works
A temporary buydown lowers the buyer's rate for the first part of the loan. A common version is the "2-1" buydown: the rate is 2 points lower in year one, 1 point lower in year two, and then the full note rate for the rest of the loan. The seller's money is deposited into an account at closing, and the lender draws from it each month to cover the difference.
Here's an illustration, using our own rounded math. Take a $545,000 home, the Portland metro's September median sale price in RMLS's report, with 20% down. That's a $436,000 loan. At 7.40%, principal and interest come to about $3,019 a month. With a 2-1 buydown, year one is figured at 5.40% (about $2,448) and year two at 6.40% (about $2,727). The buydown would cost roughly $10,300, a little under 2% of the price. Taxes, insurance, and lender pricing will change the real figures, so ask the buyer's lender for an exact quote.
Two rules matter. Fannie Mae caps a temporary buydown at a 3-point reduction, with the rate rising no more than 1 point a year for no more than three years. And for conventional loans sold to Fannie Mae, the lender must qualify the buyer at the full note rate, not the bought-down rate. A buydown can make the first years more affordable, but it won't help a buyer who can't qualify at today's rate.
Concession or Price Cut? Run the Numbers
Many sellers assume a price cut and a credit are the same thing. To your bottom line, a $10,000 price cut and a $10,000 credit look about the same. To the buyer, they can feel very different.
Using the same example, cutting the price by $10,000 shrinks a 20%-down buyer's loan by $8,000. At 7.40%, that lowers the monthly payment by only about $55. The same $10,000 spent on a 2-1 buydown lowers the payment by about $570 a month in year one and $290 a month in year two. A buyer who is short on cash at closing may get even more out of a straight closing-cost credit.
A credit also keeps your contract price higher, but don't count on it to prop up value. Lenders must share concessions with the appraiser, so a credit can't hide an overpriced home. Our appraisal gap guide explains what happens when the value comes in short.
Loan Rules That Cap What You Can Offer
Each loan program limits how much a seller and other interested parties can contribute. If you agree to more than the buyer's loan allows, the lender may reduce the counted sales price or ask the parties to restructure the deal late in the process. Common limits:
- Conventional (Fannie Mae), principal residence or second home: up to 3% when the buyer puts down less than 10%, 6% with at least 10% but less than 25% down, and 9% with 25% or more down. Investment properties are capped at 2%. The limits are based on the lower of the sales price or appraised value, and any credit above the buyer's actual closing costs is treated as a sales concession and deducted from the price.
- FHA: interested parties may contribute up to 6% of the sales price toward the buyer's origination fees, other closing costs, prepaid items, and discount points. The 6% includes rate buydowns. Anything above that is treated as an inducement to purchase.
- VA: the VA limits seller concessions to 4%. Only some costs count toward that limit, such as the VA funding fee, prepaid items, and funds for a temporary buydown. Normal discount points and many standard closing costs fall outside it.
On a $545,000 sale, the difference between 3% and 6% is more than $16,000. Ask for the buyer's loan type and down payment when the offer comes in, and have the buyer's lender confirm the allowable amount before you sign.
How to Negotiate Concessions Without Overpaying
Know your net, not just your price. Before you counter, compare each offer by what you walk away with after the credit, your loan payoff, and your costs. Our Oregon home selling costs breakdown lists what to subtract.
Price it right first. Redfin found that 21.1% of U.S. sellers with active listings cut their asking price in the four weeks ending September 20, 2026, and 25.9% did in the Portland metro. A listing priced to the market from day one gives you more room to say no to large requests later. See our guide to pricing your Oregon home right.
Counter with a dollar figure. Write credits as a fixed amount ("Seller to credit Buyer $8,000 toward closing costs and/or prepaid items"), not as an open-ended promise. Ask the buyer's lender to confirm the amount fits the loan program.
Trade, don't just give. A concession is a bargaining chip. Ask for something in return, such as a shorter inspection period, a quicker closing, or a higher price that covers part of the credit if the appraisal supports it. Our guide to negotiating offers covers counteroffer strategy.
Use the inspection to set the number. If repairs come up, get a contractor bid before you agree to a credit. A fair credit tied to a real estimate is easier to defend than a round number.
Confirm it with escrow. Send the signed terms to your escrow officer early so the credit shows up correctly on the settlement statement. If you have questions about how your title or escrow company handles credits, ask them directly.
How By Owner Oregon Can Help
By Owner Oregon, brokered by RealtyNet LLC, has helped Oregon homeowners sell since 2001, with 4,700+ homes sold. When buyers expect concessions, the money you save on listing fees gives you more room to negotiate. You choose the level of help you want:
- Flat Fee MLS ($199–$1,099): get your home on the MLS while you stay in charge of showings and offers.
- Agent Assist ($499–$1,099, plus $700 at closing): add licensed broker support when you want it.
- Discount Full Service ($299 + 1%, $599 + 0.75%, or $999 + 0.5%): full broker representation at a reduced listing commission.
There's no compliance fee at closing on any package. SellerHQ™ with BuyerLink™ built in is built into every By Owner Oregon package. Offers on your listing show up in your SellerHQ™ dashboard, where you can record a decision, send a counter with a message to the buyer's agent, or decline. Recording a decision there doesn't legally accept an offer; you still sign and deliver the offer itself.
Run your numbers with our savings calculator, then compare our packages and pricing and choose the one that fits your home and your timeline.
Rates and market data change often. The figures above come from the sources listed below for the periods shown, and the payment examples are rounded illustrations, not loan quotes. This article is general information, not legal, tax, or lending advice. Confirm concession limits with the buyer's lender.
Sources
- Freddie Mac, Primary Mortgage Market Survey, rates as of October 15, 2026: freddiemac.com/pmms
- Redfin, "Nearly Half of Homebuyers Get Concessions From Sellers as Most Markets Tip in Buyers' Favor," September 18, 2026 (three months ending August 31, 2026): redfin.com
- RMLS, Market Action Report, Portland Metro, September 2026 reporting period: rmlsweb.com
- Fannie Mae Selling Guide, B3-4.1-02, Interested Party Contributions (IPCs): selling-guide.fanniemae.com
- Fannie Mae Selling Guide, B2-1.4-04, Temporary Interest Rate Buydowns: selling-guide.fanniemae.com
- U.S. Department of Housing and Urban Development, FHA Single Family Housing Policy Handbook 4000.1 (Update 18, August 12, 2026), Interested Party Contributions: hud.gov
- U.S. Department of Veterans Affairs, VA Home Loans, "Loan Fees": benefits.va.gov
- Redfin, "Price-Drop Rate Ticks Up to Record September Rate Amid Strong Buyer's Market," September 30, 2026 (four weeks ending September 20, 2026): redfin.com
