09/01/2026
Before you reduce the price of your listing, watch this.
There’s a property that was originally listed for $1.2 million. After sitting on the market for more than 30 days, the price was reduced by $51,000.
That sounds significant—but for a buyer financing the purchase at 6.5%, that $51,000 reduction may lower the monthly principal and interest payment by only about $322.
What if the seller took a different approach?
Instead of reducing the price by $51,000, the seller could potentially keep the $1.2 million price and offer approximately $22,000 as a credit toward a 2-1 temporary interest-rate buydown.
On a $960,000 loan, that could give the buyer:
Year one at 4.5%—saving approximately $1,203.67 per month.
Year two at 5.5%—saving approximately $617.08 per month.
Beginning in year three, the loan returns to the standard fixed rate of 6.5%.
Now look at the difference:
A $51,000 price reduction saves the buyer approximately $322 per month.
A roughly $22,000 temporary buydown could save them more than $1,200 per month during the first year.
The seller gives up less money. The buyer gets significantly more immediate payment relief. The agent preserves a higher sales price and commission AND the neighborhood also wins because the values are maintained.
That’s a win for everyone.
The next time you have a listing that isn’t selling, call me before automatically reducing the price. I’ll run the numbers and help you structure an option that could make the property much more attractive to buyers.
