10/05/2026
A price reduction sounds like the obvious win—but it may not be the option that makes the biggest difference for the buyer.
Here’s an illustrative example:
A $500,000 purchase with 5% down creates a $475,000 loan.
At a 7.28% interest rate, using approximately $11,000 to reduce the purchase price would lower the principal and interest payment by roughly $73 per month.
Using approximately those same seller dollars toward a temporary 2-1 buydown could reduce the buyer’s payment by roughly:
🏡 $618 per month during the first year
🏡 $316 per month during the second year
The buyer gets meaningful short-term breathing room, the seller may be able to preserve more of the purchase price and the agents gain another tool to help the transaction come together.
A temporary buydown doesn’t change the permanent note rate, and the buyer must still qualify for and be comfortable with the full payment. Refinancing later may be an option if rates improve and the borrower qualifies—but it should never be treated as a guarantee.
The point is simple: before automatically asking for another price reduction, let’s compare what those same dollars could accomplish through:
• A temporary buydown
• A permanent rate reduction
• Closing-cost assistance
• A purchase-price reduction
If you’re an agent with a buyer considering a specific property, send me the listing price, expected down payment and potential seller credit. I’ll crunch the numbers and show you which structure may create the greatest impact.
Every buyer, property and loan scenario is different—but when we paint the options clearly and use them strategically in negotiations, everyone has a better opportunity to win.
Illustrative example only. Principal and interest only. Rates, costs, program availability and borrower eligibility vary.
