A Lower Price or a Lower Rate? Don't Guess. Compare: 10-22-2026

What Every Agent Should Know:--- With mortgage rates challenging affordability and buyers hesitant to make decisions, sellers are increasingly willing to negotiate. But here's a question every REALTOR® should consider:--- Is your buyer better off negotiating a lower purchase price—or asking the seller to contribute toward a permanently lower interest rate?--- A price reduction lowers the mortgage balance, but the resulting monthly payment savings may be surprisingly small.--- Alternatively, a seller contribution toward a permanent interest-rate buydown could provide substantially greater monthly payment relief, even with a higher purchase price.--- But what if mortgage rates decline in the next 6, 12, or 24 months?--- That's the question nobody can answer with certainty.--- A buyer who negotiates a larger price reduction may benefit from a lower loan balance and potentially refinance if rates decline. A buyer who secures a permanently lower rate benefits immediately, without depending on future market conditions.--- Both strategies have merit. The right answer depends on the numbers, the buyer's financial priorities, and how long they expect to keep the mortgage.--- For listing agents, this creates another negotiating opportunity. A seller contribution toward financing costs may be more attractive to a payment-conscious buyer than another reduction in asking price.--- Before your buyer requests a price reduction—or your seller agrees to one—give me a call.--- Let's compare the alternatives. Sometimes the smartest negotiation isn't about the price. It's about how the transaction is structured.--- EQUAL HOUSING LENDER--- https://apply.planethomelending.com/#/loan-officers/tpayne%40planethomelending

Tom Payne