---
title: "Price Drop vs. Seller Concession: What South Jersey Buyers Need to Know"
url: https://stacklist.com/card/e996b6e2-bad7-4fd9-b61a-0ff72533e893
source_url: "https://www.linkedin.com/posts/danielrallo_this-comes-up-in-almost-every-negotiation-activity-7411923548082155520-ZXqL"
stack: https://stacklist.com/c/places/stack/c620d6cd-e060-40f6-a7a4-e6ee666cadeb
summary: "Daniel Rallo's post breaks down the key difference between a price drop and a seller concession in real estate negotiations, using a $900,000 home as a practical example. Price drops attract new buyers by boosting market activity, while seller concessions help close buyers already at the table by reducing upfront cash needs."
tags: "real-estate, negotiation, seller-concession, price-drop, mortgage, closing-costs, home-buying"
key_entities: "Daniel Rallo (person), South Jersey Shore (location), Price Drop (concept), Seller Concession (concept), Rate Buydown (concept), Appraisal (concept)"
classification: "analysis"
content_hash: "sha256:51265eeb9566d138e0e69d8555b13d21841853c38869802caa3606f1d4954365"
acp_version: "0.2"
token_counts_approximate: 733
visibility: public
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status: "final"
---

# Price Drop vs. Seller Concession: What South Jersey Buyers Need to Know

Daniel Rallo 7mo Report this post This comes up in almost every negotiation. And knowing the difference changes how you position your offer or counter. Especially here at the South Jersey Shore, where pricing signals, appraisals, and buyer cash all play a major role. Here’s the breakdown: PRICE DROP: List price goes from $900,000 to $880,000. What actually happens: Buyer’s down payment drops 20% of $880,000 vs $900,000 equals $4,000 less out of pocket Buyer’s loan amount drops $704,000 vs $720,000 Monthly payment drops by roughly $120 per month Property now appraises at the lower price in local comps Seller nets roughly the same after commission SELLER CONCESSION: Price stays at $900,000, seller gives a $20,000 credit at closing. What actually happens: Buyer’s down payment stays the same $180,000 on $900,000 Buyer’s loan amount stays the same $720,000 Monthly payment stays the same That $20,000 credit can cover closing costs, a meaningful rate buydown, repairs, or a combination of all three Property appraises at $900,000, which matters in South Jersey Shore markets where comps protect long term value Seller nets the exact same amount So which is better? For the buyer: Concessions often win at higher price points. A $20,000 credit preserves liquidity, reduces upfront cash strain, and keeps the appraisal strong for future refinancing or resale. For the seller: Price drops win when momentum slows. In coastal markets, reducing the list price can reignite showings and urgency. Concessions only help the buyer who is already at the table. In a negotiation: Buyer who loves the home but is tight on cash? Push for concessions. They solve the buyer’s immediate cash issue without damaging long term value. Seller whose home has been sitting longer than expected? Drop the price. It resets perception and draws new buyers into the funnel. The key insight: Price drops attract buyers. Concessions close buyers who are already interested. One lever impacts marketability. The other impacts closing costs. Knowing which one to pull, and when, is how deals get done in the South Jersey Shore market. …more 2 Like Comment Share Copy LinkedIn Facebook X Transcript Transcript Transcript I always get this questions from clients. Do I do a price drop or a seller concession? By doing a price drop, homes that are on the market longer, it will increase buyer activity and interest. At the same time. For potential buyers, it'll reduce their monthly mortgage payment and it will reduce the amount of money that they need to put down on the House. With the seller concession, they could use that money to buy down their interest rate or use it for their closing cost. So for people, buyers. Out there that have less money in their bank account, this could be a very attractive benefit for them. O what's the key? take away? Price reductions attract buyers. Seller concessions? close buyers. To view or add a comment, sign in