Creative seller offers that work harder than a price cut.
Rates are back in the news, and the buyers I am talking to are sharpening their pencils. They want to stay competitive, but every dollar of monthly payment matters to them. So I have been looking for smart ways sellers can make their homes more attractive to these buyers. Here is one that stands out.
Most buyers are payment driven. A $25,000 price cut lowers your buyer’s monthly payment by about $138. In our scenario (details below), a 2/1 rate buydown costs you $9,480 and lowers your buyer’s payment by $523 a month in the first year and $267 a month in the second.
Scenario: $500,000 home, 20% down, $400,000 loan, 7.375% 30-year fixed (7.476% APR); payments shown are principal and interest.
$25,000 Price Cut
- Seller cost: $25,000
- Buyer saves: $138 per month
2/1 Rate Buydown
- Seller cost: $9,480
- Buyer saves: $523 per month in Year 1 and $267 per month in Year 2
What That Means for You
- You keep $15,520 compared with a $25,000 price cut.
- Your buyer’s payment relief is larger where it counts: 3.8 times larger in Year 1 and nearly 2 times larger in Year 2.
- Your price holds: your list and contract price stay intact.
- Your listing stands out: a home advertised with special financing is the lowest-payment option in its price range.
Is a Buydown Right for Your Home?
It depends on your price point, the loan types your likely buyers use and current rates. I will run a side-by-side on your home, price cut versus buydown, with your actual numbers. Call (561) 632-7705 or email slevine@ipre.com.
Illustration only. Not a Loan Estimate or commitment to lend. Example based on a 7.375% note rate, 7.476% APR, as of 10/1/2026. Payments shown include principal and interest; taxes, insurance and any mortgage insurance are additional. A temporary buydown lowers the rate for a limited period; the note rate applies afterward, and the borrower qualifies at the note rate. Seller contributions are subject to loan program limits. Rates and terms subject to change. Equal Housing Opportunity.
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