If you’ve polished the presentation and refreshed your marketing, but still aren’t getting much interest, that’s when it may be worth considering additional concessions. Paris says, “If all of the marketing is top-notch [and you’re still not getting traction], then you may have to reduce the price.”
She adds, “I’ve seen even just a small price reduction make a big difference in the number of showings we get and, ultimately, the number of offers we receive. Even a $10,000 price reduction can make a huge difference.”
This is also where a seller-paid rate buydown can come into play, especially if affordability is keeping otherwise interested buyers on the sidelines. Instead of immediately lowering your asking price, consider offering to buy down the buyer’s interest rate to make the monthly payment more manageable and give them another reason to choose your home.
The key is to use a rate buydown as part of a broader selling strategy, not as a substitute for making your home as appealing as possible.
»Learn more: Before offering a seller-paid rate buydown, make sure you know what it could mean for your bottom line. Use our Net Proceeds Calculator to estimate your take-home amount after concessions and other selling costs, so you can see whether the extra incentive is worth it.
Alternative seller concession offers
A rate buydown isn’t the only way to motivate a buyer. Depending on your local market conditions, buyer needs, and lender rules, you may consider offering other types of concessions as part of the deal.
Here are a few alternatives sellers might offer instead of (or alongside) a buydown:
- Closing cost credits: Cover a portion of the buyer’s closing costs, such as appraisal fees, title insurance, or escrow fees, so they have less to pay upfront at closing.
- Home warranty: Offer a one-year home warranty to ease concerns about future repair costs.
- Repair credits: Instead of fixing inspection items yourself, you can offer a credit so the buyer can handle repairs after closing.
- Offer flexible move-in timing: If your buyer needs additional time to close or move their family into the home, offer flexible terms that can make the deal more attractive.
- Offer to pay the buyer’s agent fee: Following a court settlement that changed commission rules, sellers are no longer automatically expected to pay the buyer’s agent fee. However, many still choose to cover this cost to help close a deal. According to our survey, 57% of agents say it’s the most common concession sellers offer.
“The rate buydowns are super effective, but we’re seeing many sellers covering the buyer’s agent fees,” Paris says. “We’re also seeing just straight closing cost payments. So the seller can pay the buyer’s prepaids and closing costs up to a certain limit, and that minimizes the cash out of pocket for the buyer at closing.”
Ultimately, the right concession will depend on what buyers in your area value most and what you can afford to give.
A top agent will know if a buydown is right for you
To know if a seller-paid rate buydown is worth offering, it’s important to consider local market conditions, buyer demand, and your home’s position among competing listings. This is usually where working with an experienced real estate agent can make all the difference.
An agent can help you figure out whether a buydown will actually attract more buyers or if another concession might work better. They can also help you weigh the cost against the potential benefit and structure the offer in a way that makes sense for your market.
Through HomeLight’s free Agent Match platform, you can connect with top-performing real estate professionals in your area who understand how and when to use a buydown offer strategically. These agents are backed by real transaction data, not just reviews, so you can feel confident in their ability to guide your sale.
Editor’s note: The buyer rate and seller cost examples we’ve provided are for educational purposes. Your costs can vary. Buydown options may not be available under some federal or state loan programs or from all lenders.
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