Seller concessions are becoming a powerful tool for Arizona home buyers—especially as affordability continues to tighten and mortgage rates remain elevated. But not all concessions are equal, and the type of seller you’re negotiating with matters more than ever. In today’s Arizona market, builders and resale sellers behave very differently, and successful buyers are tailoring their negotiation strategy accordingly.
This guide breaks down what’s working right now across both new construction and resale homes, including real-world examples, buyer scenarios, and some creative negotiation strategies that can help you save thousands.
Understanding Seller Concessions in Arizona
Seller concessions are incentives a seller offers to help reduce a buyer’s out-of-pocket costs. These can include paying for closing costs, reducing interest rates, covering repairs, or providing credits toward upgrades.
But their frequency and generosity have shifted dramatically in Arizona over the last 18 months. Rising inventory—especially in Phoenix’s suburban new-build corridors—has created leverage points that didn’t exist during the frenzy of 2020–2022.
In early 2026, concessions have become normal again.
Part 1: Builder (New Construction) Concessions in Arizona
If you’re buying new construction in Phoenix, Mesa, Buckeye, Surprise, or Maricopa, you’ll notice one thing immediately:
Builders are extremely aggressive with concessions right now.
Inventory is high, delivery timelines are tight, and builders are motivated to close homes—often more motivated than typical resale homeowners.
Here’s what builders are offering today:
1. Big Interest Rate Buydowns (Temporary and Permanent)
This is the biggest incentive in new construction right now.
Builders routinely offer:
- 3-2-1 buydowns (Years 1–3 reduced rates)
- 2-1 buydowns
- Permanent buydowns using large seller credits
Because builders often partner with preferred lenders, they can offer buydowns that are significantly cheaper than what an individual seller could provide.
Real Arizona Example:
A major Phoenix builder recently advertised:
“4.75% fixed for qualified buyers with preferred lender.”
This was achieved through a large builder-paid buydown—something resale sellers typically can’t match.
2. Large Closing-Cost Credits
Builder credits of $10,000–$25,000 are common in communities with excess inventory.
These often cover:
- Loan fees
- Title fees
- HOA capital contributions
- Prepaids and escrows
This can dramatically lower the buyer’s cash-to-close.
3. Included Options and Upgrades
Instead of lowering prices, many builders now offer:
- Free appliance packages
- Free backyard landscaping (common in master-planned communities)
- Flooring or countertop upgrades
- Smart home systems
- Washer/dryer packages
Buyers can often negotiate more—especially on quick move-in homes.
4. Builder-Paid Rate Locks (Extended Locks)
In a volatile rate environment, this is a huge perk.
Builders are offering:
- 60–120 day rate locks
- “Float down” options if rates drop
- Lock extensions at no cost
Few resale sellers can match this kind of financial leverage.
Part 2: Resale Market Concessions in Arizona
Resale sellers aren’t nearly as aggressive as builders—but concessions are absolutely back on the table.
On homes sitting 30+ days, buyers are routinely winning:
1. Seller-Paid Closing Costs (Partial or Full)
Typical credits in the resale market range from:
- $5,000–$10,000 in most Phoenix suburbs
- Up to 3% of purchase price on slower listings
These can be used for closing costs, prepaids, or interest-rate buydowns.
2. Resale Interest Rate Buydowns (2-1 or Permanent)
While resale sellers don’t have the same leverage builders do, many are agreeing to buyer requests for:
- 2-1 buydown credits
- Permanent buydown credits
These are most successful when:
- The home needs cosmetic updates
- It’s been on the market longer than average
- The seller is relocating and has a deadline
- The seller is emotionally motivated (divorce, estate sale, job loss, etc.)
3. Repair Credits or Pre-Closing Improvements
Inspection negotiations are where concessions often happen on the resale side.
Common wins:
- Roof tune-ups
- Pool repairs
- HVAC service or repair credits
- Sewer line cleaning
- Appliance replacements
These are often easier for sellers to agree to compared to lowering the price.
Creative Seller Concessions Arizona Buyers Are Trying (and Sometimes Winning)
While traditional concessions are common, Arizona buyers in the resale market are getting more creative—especially when competing with aggressive builder incentives. These asks may not always be accepted, but when positioned correctly, they can meaningfully reduce your cost of ownership.
Here are creative concessions buyers are requesting in Arizona right now:
1. Prepaid HOA Dues (3–12 Months)
HOA costs are rising across Phoenix, Scottsdale, Surprise, and Chandler. Buyers are negotiating:
- Several months of prepaid dues
- Utility payments covered when bundled with the HOA
2. Solar Loan Paydowns or Solar Inspections
Especially in solar-heavy markets like Buckeye, Peoria, Goodyear, and Queen Creek.
3. Multi-Year Home Warranty Coverage
Buyers are increasingly asking for expanded coverage that includes pool equipment and major HVAC systems.
4. Pool Start-Up or Safety Improvements
Pool issues are common in the resale market. Buyers request:
- New pool equipment
- Resurfacing credit
- Safety fencing
5. Landscaping Credits
Deferred landscaping is common with out-of-state or inherited properties.
6. Flooring or Carpet Credits
Particularly effective when the seller knows flooring is dated.
7. Move-Out Cleaning and Junk Removal
Small cost, big buyer benefit—especially for out-of-state buyers.
8. Discounted or Free Seller Rent-Back
Buyers who don’t need immediate occupancy use this as a bargaining chip.
Buyer Scenarios: What This Looks Like in Real Life
Here are Arizona-specific scenarios to show how concessions could play out in 2026:
Scenario 1: Builder Deal in Queen Creek
Home Price: $520,000
Market Rate: 7.00%
Builder Incentive Package: $25,000
Breakdown:
- $18,000 → Permanent rate buydown (7.00% → 5.50%)
- $7,000 → Closing cost credit
Impact for the Buyer:
- Monthly payment lowers by ~$355/mo
- Cash needed at closing drops by ~$7,000
- 10-year savings exceed $42,000
👉 Only builders can offer incentives at this scale.
Scenario 2: Resale Home in Mesa (38 Days on Market)
Home Price: $465,000
Market Rate: 6.90%
Buyer Request: $9,000 concession
Structure:
- Applied to a 2/1 buydown
- Year 1 rate: 4.90%
- Year 2 rate: 5.90%
- Years 3–30: 6.90%
Buyer Impact:
- Saves ~$520/mo in Year 1
- Saves ~$320/mo in Year 2
- No long-term rate improvement
👉 A realistic and achievable resale concession.
Scenario 3: Tempe Home After Inspection
Home Price: $455,000
Inspection Findings:
- AC end-of-life
- Minor roof issues
- Aging water heater
Buyer Requests: $11,500
Negotiated Result:
- $8,000 repair credit
- $2,000 closing-cost credit
Outcome:
- Buyer keeps $10K+ and can replace AC after closing
- No change in monthly payment
👉 Classic Arizona resale concession scenario.
Best Strategies on How Buyers Can Strategically Use Concessions
Best Strategy with Builders
✔ Prioritize permanent rate buydowns (most impactful)
✔ Ask for closing cost coverage
✔ Target inventory homes for max incentives
Best Strategy on Resale Homes
✔ Use DOM (days on market) as leverage
✔ Combine inspection findings with concessions
✔ Use moderate concessions to reduce cash-to-close
Conclusion: Leverage Is Returning—If You Know Where to Look
In today’s Arizona housing market, concessions are back—and more diverse than ever. Builders are offering massive incentives to compete for buyers, while resale sellers are gradually becoming more flexible as days-on-market rise.
For buyers, this is the first time since 2019 that:
- You can negotiate strategically
- You can lower your monthly payment
- You can reduce cash-to-close
- You can push for repairs or improvements
And when the right opportunity presents itself, you can get creative and win concessions that meaningfully improve both affordability and quality of life.
DTD Realty — Do The Deal.
Driven. Trusted. Dependable.
602.702.3601
https://www.dtdrealty.com
[email protected]
