Seller Concessions in El Paso: What They Are and When to Ask for Them

If you're buying a home in El Paso, seller concessions can save you thousands of dollars at closing. But a lot of buyers don't know they can ask for them, and even more don't understand when it makes sense to push for them and when to hold back. We covered the basics on our YouTube channel, but the market has shifted a lot since then. Here's the updated picture.

What Are Seller Concessions?

A seller concession is anything the seller agrees to give or pay for on behalf of the buyer during the transaction. Any time the seller concedes something of value to the buyer, that's a concession.

The most common one in El Paso is the residential home warranty, which usually runs up to about $500. If the seller agrees to cover it, that's a concession. Simple.

But concessions go a lot further than warranties, and in today's market, buyers have more room to ask.

The National Picture: Concessions Are Near Record Highs

This isn't just an El Paso thing. According to Redfin's Q1 2025 data, 44.4% of all home sales nationwide included some form of seller concession, whether that's money toward repairs, closing costs, or mortgage rate buydowns. That's just shy of the all-time record of 45.1% set in early 2023.

Why so high? The housing market has tilted toward buyers. Mortgage rates are still elevated, inventory is sitting longer, and sellers are competing harder for a smaller pool of qualified buyers. That means if you're in a position to buy right now, you have negotiating power that didn't exist during the COVID-era frenzy.

Closing Cost Concessions: The Most Common Ask

The concession that makes the biggest financial difference is when a seller agrees to pay some or all of the buyer's closing costs.

Closing costs in El Paso typically run 3 to 4% of the purchase price. On the current median sale price of around $250,000, that's $7,500 to $10,000 you'd normally bring to the closing table on top of your down payment. For first-time buyers or military families PCSing to Fort Bliss who are already stretching to cover the move, that's a serious amount.

You can ask the seller to cover any portion of those costs. Some buyers ask for $5,000. Some ask for the full amount. What the seller agrees to depends on how motivated they are, how long the home has been sitting, and how many other offers they're looking at.

Here's how it works in practice: say you're buying a home listed at $250,000 and you ask for $7,500 in closing cost assistance. The seller's net is effectively $242,500. Some sellers would rather just drop the price by $7,500, and sometimes that works too. But for buyers, the concession is usually better because it reduces your out-of-pocket cash at closing without changing your loan amount as dramatically.

Rate Buydowns: The Power Move in 2026

This is the concession that's gaining the most ground right now, and it's the one I think more buyers should be asking about.

A rate buydown is where the seller contributes money to reduce your mortgage interest rate. Instead of lowering the purchase price (which devalues the property on paper), the seller pays a fee to the lender that buys your rate down, either temporarily or permanently.

According to research from the American Enterprise Institute, around 64% of new homes sold by the largest builders in 2025 used permanent rate buydowns. Builders figured this out early: a $5,000 rate buydown saves the buyer a lot more over 30 years than a $5,000 price reduction. The monthly payment difference is more noticeable, which makes homes sell faster.

Resale sellers are catching on too. A temporary 2-1 buydown, where the seller pays to reduce your rate by 2% in Year 1 and 1% in Year 2, can lower your monthly payment by roughly $600 in the first year on a $500,000 loan. On El Paso price points, the savings are smaller but still meaningful. On a $250,000 purchase, a 2-1 buydown might save you $250 to $300 per month in Year 1. That's real money when you're getting settled into a new home.

With mortgage rates still elevated compared to the 3% days, a rate buydown is often more valuable to the buyer than the same dollar amount applied to closing costs or price reductions. Ask your lender to run the numbers on both options so you can see the comparison.

When You Can (and Can't) Ask for Concessions

Market conditions matter more than anything else here.

During the COVID-era seller's market (roughly 2020 through early 2023), asking for closing cost concessions was almost a non-starter in El Paso. Sellers had multiple offers, and any buyer requesting concessions got pushed to the bottom of the pile. We basically didn't see sellers giving buyers closing costs during that stretch.

The market has shifted. Nationally, home price reductions are increasing and buyers are gaining power. In El Paso, homes are taking an average of 48 days to sell. That's not a panic number, but it gives buyers room to negotiate. If a home has been sitting for 60 to 90 days and the seller is motivated, asking for concessions is not only reasonable, it's expected.

It depends on the neighborhood and price point. Homes in the $150,000 to $250,000 range with more competition might not leave as much room. Above $300,000, where inventory tends to sit longer, you have more room to negotiate. And with 65% of builders offering buyer incentives including closing cost assistance and rate buydowns, you should absolutely be asking for concessions on new construction.

Other Concessions You Can Ask For

Closing costs and rate buydowns are the headliners, but you can negotiate other concessions too:

Repair credits after the inspection, where the seller gives you money at closing instead of doing the repairs themselves. This is often better because you control the work and choose your own contractors.

Home warranty coverage (typically $400 to $500) that covers major systems and appliances for the first year. A small ask, but a useful safety net, especially on older homes.

Personal property inclusions like appliances, window treatments, or a backyard shed. Not technically a financial concession, but still something of value you can negotiate into the deal.

Keep in Mind: Sellers Have Costs Too

Sellers aren't handing out free money. They have their own closing costs, agent commissions, and possibly a mortgage payoff. Every concession they give comes out of their proceeds. A good agent on either side understands this and structures the deal so both parties can make it work.

The point isn't to squeeze the seller for everything possible. It's to know what's available to you and ask for what makes the deal work for your budget. In a market where nearly half of all sellers are giving concessions, you're leaving money on the table if you don't at least ask.

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John David Peña is the owner of Peña El Paso Realty Group. Buying a home in El Paso and want help negotiating the best deal? Visit penaelpaso.com.