Concessions are back, and buyers should understand why

Interest rates have changed the conversation. Instead of only negotiating price, buyers are negotiating terms.

On the new construction side, many builders are using incentives to keep monthly payments attractive. NAHB reported 65% of builders used sales incentives in November, and incentives like mortgage rate buy downs are a common example.

On the resale side, sellers are negotiating too. Redfin reported that about 44% of home sales included seller concessions in early 2025, which shows how common it has become for buyers to ask for help with costs instead of only asking for a lower price.

What is a concession, really

A concession is money the seller or builder credits to the buyer at closing. It can often be used for things like:

• Closing costs (lender fees, title, attorney, appraisal, etc.)
• Prepaids (homeowners insurance, taxes, escrow funding)
• Discount points to buy down the interest rate
• Temporary or permanent rate buy down structures, depending on the lender and program

A key detail: concessions typically cannot be used for the down payment. They are usually applied to closing related costs and rate buy downs.

What a $20,000 concession can get you

A $20,000 concession is meaningful because it can be used strategically. Here are the most common, high impact ways buyers use it.

Option 1: Buy down the interest rate

This is the headline move because it targets the monthly payment.

Builders can sometimes offer promotional fixed rates by funding discount points or a lender program, which is why you may see advertised offers like 4.99% on a 30 year fixed in certain communities for qualified buyers.

Important: specific rates depend on loan type, credit profile, occupancy, and the builder’s preferred lender requirements. Offers can change quickly and often have deadlines.

Option 2: Cover closing costs and keep cash in your pocket

Many buyers would rather keep their savings, especially if they are moving, buying furniture, or planning updates.

Using the concession for closing costs can reduce your cash needed at closing, and you can still negotiate price separately if the market supports it.

Option 3: Combine both

This is often the sweet spot.

Use part of the $20,000 to cover closing costs and the remaining amount to buy down the rate. This can be a strong strategy when you want payment relief but still want to preserve cash.

Local examples where this strategy can show up

You mentioned Hudson Village, Honaker Farms, Ham Farm, and Emily Gardens as examples where concessions may be used to reach a promotional fixed rate like 4.99% in some instances. Here is how this lines up with real community context.

Hudson Village in La Grange

Hudson Village is positioned as “value meets wow factor” with homes priced roughly $319,950 to $364,950 and presale options that can include a third car garage. It is also described as about 15 minutes to Seymour Johnson AFB, which is huge for PCS buyers who care about commute reliability.

Why concessions matter here: when buyers are payment sensitive, a concession used as a rate buy down can make a bigger difference than a small price cut, especially at this price point.

Honaker Farms in Selma

Honaker Farms is a feature packed new construction community with homes priced $333,900 to $469,900 and layouts 1,500 to 2,500 sq ft, located right off Hwy 39 and less than 10 minutes to Flowers Plantation amenities.

Why concessions matter here: with a wider price and size range, buyers often have different needs. Some want cash to close, some want a lower payment, and some want both. A concession is flexible enough to match the buyer’s goal.

Ham Farm in La Grange

Ham Farm offers new construction priced $279,900 to $344,900 with homes 1,618 to 2,530 sq ft, located right off Highway 13 and described as about 15 minutes to Seymour Johnson AFB.

Why concessions matter here: this is a price range where a concession can be the difference between “we can do it” and “we need to wait.” If a buyer can apply a concession toward closing costs or a rate buy down, it often reduces the stress of making the move.

Emily Gardens in Pine Level

Emily Gardens offers plans 1,618 to 2,530 sq ft priced roughly $299,950 to $349,950 and is under 3 miles to I 95 and Hwy 70, with quick access to Eastfield Crossing retail and restaurants.

Why concessions matter here: Emily Gardens is built around convenience and value. When the location already solves the commute, the concession becomes the lever that can solve the payment.

Why a rate buy down can beat a price drop

A price reduction lowers the loan amount a little. A rate buy down lowers the cost of borrowing every month.

In a higher rate environment, many buyers care more about monthly payment than they do about “winning” a lower sticker price. That is one reason builder incentives like buy downs have become so common.

A quick checklist before you choose how to use concessions

Before you decide, ask your lender these questions:

1. Is this a permanent rate buy down or a temporary buy down?
2. What credit score, loan type, and occupancy rules apply?
3. Is there a cap on how much concession can be credited for this loan program?
4. If we refinance later, does that change the math on paying points today?
5. What is the best use of $20,000 for my specific scenario: payment, cash to close, or both?

FAQs

Can I always get a 4.99% fixed rate with a $20,000 concession?

Not always. Promotional fixed rates are typically tied to a builder incentive, a specific lender, and buyer qualification. It is real in the marketplace, but it is not universal and it changes often.

Is a concession better than negotiating a lower price?

Sometimes, yes. If your main goal is lowering the monthly payment, concessions used for a rate buy down can deliver more practical relief than a modest price reduction.

Are sellers actually offering concessions right now?

Yes. Data shows concessions have become a major negotiation tool, especially when affordability is tight.

Next step

If you tell me your target price range, down payment, and whether this will be a primary residence, I can show you what a $20,000 concession could look like in real numbers for your situation, and which communities in Johnston County and the Seymour Johnson AFB commute zone are most likely to have incentive opportunities right now.