In today’s market, sellers are feeling the pressure to make their homes stand out. According to recent data, about 20% of listings saw price reductions this spring—the highest rate in eight years. And while many analysts project a modest home price decline of 1% to 1.4% nationally by the end of 2025, that doesn’t mean a price cut is your only option—or your best one.

Many buyers, especially those financing their purchase, care more about monthly payment than the total price. That’s where seller-paid concessions can create a win-win for both parties.

Let’s say a home is listed at $400,000 and the buyer is putting 5% down at a 7% interest rate. Without any concessions, the principal and interest payment would be $2,528.15. If the seller drops the price by $10,000 to $390,000, the payment drops slightly to $2,454.95—a monthly savings of about $73.

Now consider this: instead of reducing the price, the seller offers a $10,000 credit toward a permanent interest rate buydown. That same buyer could see their payment fall to $2,370.71—a monthly savings of over $157, which is more than double the impact of a price cut.

Want to give the buyer even more breathing room? That $10,000 could fund a 2-1 temporary buydown. In that case, the buyer’s payment could start at $2,039.92 in year one (a $488 monthly savings), increase to $2,278.29 in year two, and then settle at $2,528.15 in year three and beyond.

These strategies don’t just make payments more manageable—they help buyers qualify for more home, ease into ownership, and feel more confident in the purchase. And for sellers, using concessions instead of reducing the price helps protect the home’s value and maintain stronger appraisals in the neighborhood.

Cash buyers negotiate based on price. But the majority of today’s buyers are financing—and they negotiate based on payment. That’s why offering a concession toward interest rate buydowns can increase the pool of interested, qualified buyers.

At Williams Mortgage LLC, we help both buyers and sellers think strategically. Want to explore how a concession can work harder than a price cut? Let’s talk.