{"id":6790,"date":"2026-11-06T11:30:00","date_gmt":"2026-11-06T11:30:00","guid":{"rendered":"https:\/\/sandpointrealtyidaho.com\/blog\/2026\/11\/06\/selling-your-home-what-you-should-know-about-price-cuts-vs-rate-buydowns\/"},"modified":"2026-11-06T11:30:00","modified_gmt":"2026-11-06T11:30:00","slug":"selling-your-home-what-you-should-know-about-price-cuts-vs-rate-buydowns","status":"publish","type":"post","link":"https:\/\/sandpointrealtyidaho.com\/blog\/2026\/11\/06\/selling-your-home-what-you-should-know-about-price-cuts-vs-rate-buydowns\/","title":{"rendered":"Selling Your Home? What You Should Know About Price Cuts vs. Rate Buydowns."},"content":{"rendered":"\n

$\"Selling$ \n

In today\u2019s market, a growing number of sellers are opting to do something called a price cut<\/u><\/a> \u2013 especially when their house has been on the market for a while without any bites.<\/p>\n

According to HousingWire Data<\/u><\/em><\/a> as many as 4 in 10 (43%) sellers are going this route \u2013 that\u2019s the highest it\u2019s been in 4 years. But what if there\u2019s another (potentially better option) for your bottom line? And it\u2019s just as appealing, if not more so, to today\u2019s buyers?<\/strong><\/p>\n

Enter the rate buydown<\/strong>.<\/p>\n

Why Buyers Expect a Deal<\/strong><\/h4>\n
First, let\u2019s set the stage on why some compromise may be necessary in today\u2019s market.<\/p>\n
In September, Redfin <\/em>says there were 63% more sellers<\/u><\/a> than buyers in the market. And with so many sellers active and relatively few buyers by comparison, those purchasers are realizing they have more power. And as mortgage rates<\/u><\/a> continue to put a squeeze on their budgets, they\u2019re leaning in and using it.<\/p>\n
One of the most common negotiation points? The price<\/strong>.<\/p>\n
That\u2019s because they want to feel like they\u2019re getting a deal and they want to see their monthly payment drop. And since buyers can\u2019t control rates, the price feels like the most obvious lever to pull.<\/p>\n
But the savviest sellers realize being flexible doesn\u2019t always mean a lower price, paying for a buyer\u2019s rate buydown might work better.<\/strong><\/p>\n
What Is a Rate Buydown?<\/strong><\/h4>\n
A buydown<\/strong> is money paid at closing to lower the buyer\u2019s mortgage rate. When you pay it as the seller, you are paying some of the buyer\u2019s interest ahead of time, so the buyer gets a lower rate and monthly payment. And that\u2019s especially appealing to today\u2019s buyers.<\/p>\n
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Temporary buydowns<\/strong>\u00a0lower the rate for the first few years, then it goes back to the full rate. The more years a buydown covers, the more it costs. These work well for buyers who expect to refinance within a certain amount of time.<\/p>\n<\/li>\n
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A permanent buydown<\/strong>\u00a0lowers the rate for the whole<\/em> loan. These are paid for with \u201cdiscount points.\u201d One point costs 1% of the loan. According to FICO<\/u><\/a>, each point generally lowers the rate by about a quarter of a percent. This type of buydown works well for buyers who plan to stay in the home for a long time.<\/p>\n<\/li>\n<\/ul>\n
Same Money, Different Results<\/strong><\/h4>\n
And here\u2019s why these can be a win-win for both buyers and sellers. Rate buydowns help sellers stand out in a crowded market and they can have a bigger impact on your buyer than a price cut would.<\/strong><\/p>\n
Here\u2019s an example to show you what that could look like.\u00a0<\/p>\n
Let\u2019s say you\u2019re willing to make a $10,000 concession to help get the deal done. Take a look at these three ways to spend that money and the impact they could have on a buyer\u2019s\u00a0$420,000, 30-year fixed loan at\u00a07%:<\/p>\n\n
It\u2019s the same $10,000 from the seller. But a 2-1 buydown saves the buyer about\u00a0eight times more\u00a0each month in the first year.<\/strong><\/p>\n
And since most buyers shop by monthly payment, that\u2019s what grabs their attention.<\/p>\n
That\u2019s what makes a rate buydown worth considering. Instead of reducing your asking price, you may be able to use that same money to have a bigger impact on your buyer\u2019s monthly payments. And depending on what matters most to that buyer, the immediate savings could be more appealing than a price reduction.<\/p>\n
The key is working with your agent and the buyer\u2019s lender to compare the options and see which one makes the most sense.<\/p>\n
Things To Know<\/strong><\/h4>\n\n
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Loan programs cap how much a seller can pay toward a buyer\u2019s costs.\u00a0<\/p>\n<\/li>\n
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Money toward buydowns doesn\u2019t limit what else a buyer may ask a seller to pay for. Buyers may still ask for repairs or other concessions.<\/p>\n<\/li>\n
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Putting the buydown offer in your listing lets agents and buyers know it\u2019s an option.<\/p>\n<\/li>\n
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Your agent can run scenarios on buydowns and other costs of selling in advance so you\u2019re prepared when an offer comes in.<\/p>\n<\/li>\n<\/ul>\n
As Lawrence Yun, Chief Economist at the National Association of Realtors <\/em>(NAR), says<\/u><\/a>:<\/p>\n
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\u201cHome sellers need to be realistic about local market conditions, which could require price discounts and other incentives to attract buyers.\u201d<\/em><\/p>\n<\/blockquote>\n
And sellers who offer solutions like buydowns can make meaningful impact where home buyers need it most: in their wallets.<\/p>\n
Bottom Line<\/h3>\n
When you\u2019re looking for ways to make your house more appealing to buyers, a price reduction isn\u2019t your only option. A mortgage rate buydown could help a buyer save more each month, especially in the early years of their loan.<\/p>\n
Talk to your agent or a trusted lender which incentives could make the biggest difference for buyers in our market, while still protecting your bottom line.<\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"
In today\u2019s market, a growing number of sellers are opting to do something called a price cut \u2013 especially when their house has been on the market for a while without any bites. According to HousingWire Data as many as 4 in 10 (43%) sellers are going this route \u2013 that\u2019s the highest it\u2019s been […]<\/p>\n","protected":false},"author":1,"featured_media":6791,"comment_status":"registered_only","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[12],"tags":[29,27,20,18,28],"class_list":["post-6790","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-insight","tag-idaho-real-estate","tag-north-idaho-homes","tag-rain-silverhawk","tag-real-estate","tag-sandpoint-idaho"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t