Strategy A
$530,000
Standard Price Drop
Seller Net Impact
-$20,000
Loan Amount (90%)
$477,000
Buyer Interest Rate
6.750%
Monthly Savings
$117/mo
Buyer Monthly P&I
$3,095
Recommended
Strategy B
$550,000
Seller Buydown Concession
Seller Concession Cost
-$12,000
Loan Amount (90%)
$495,000
Effective Rate (Yr 1)
4.750%
Seller Keeps In Pocket
+$8,000
Buyer Initial P&I
$2,583
The Marketing Reality for Agents
To produce the exact same payment relief as Strategy B using only a price reduction, the seller would have had to slash their list price down to $442,500 ā an agonizing reduction of -$107,500.
