If Your Home Isn’t Selling, Price Isn’t the Only Conversation
If your home has been sitting longer than you expected, I know how discouraging that can be. It’s hard to keep hearing that buyers “like the home” but aren’t making offers. And it’s even harder when the first answer seems to be, “let’s reduce the price again.”
Sometimes a price adjustment is absolutely the right move. But before we go there, I want to make sure we’ve looked at the whole picture.
Right now, one of the biggest things affecting buyers is not just the price of the home — it’s the monthly payment. Higher interest rates have changed what buyers feel comfortable spending, even when they technically qualify. Pasted markdown
That means we need to think a little differently.
Builders have been doing this for a while. They know buyers are comparing payments, not just list prices, so they often use financing incentives to make the numbers feel more manageable. Pasted markdown
I think resale sellers should at least have that same conversation.
One Option: A 2-1 Rate Buydown
A 2-1 buydown is one way a seller can help reduce the buyer’s payment during the first two years.
If the buyer’s permanent interest rate is 7.5%:
- the first year, their payment is based on 5.5%
- the second year, 6.5%
- after that, it returns to 7.5% Pasted markdown
It doesn’t permanently change the loan rate, but it can make those first couple of years much easier for a buyer.
And that matters because sometimes a seller can spend less on an incentive like this than they would on a large price reduction, while creating a much bigger difference in the buyer’s monthly payment.
Using the example in our numbers, on a $400,000 loan the difference between a 7.5% payment and a 5.5% payment is about $526 a month during the first year. Pasted markdown
That’s something a buyer can actually feel.
Why I Like Looking at This Before Another Price Cut
I never want to recommend a concession just because it’s the easiest answer.
Every dollar matters to a seller.
So if we’re going to give something up, I want to ask whether that money is being used in the most effective way.
Would another $20,000 price reduction make enough difference?
Or could part of that money be used in a way that gets a buyer more excited, lowers their monthly payment, and helps us compete with new construction?
That’s the kind of comparison I want to make with you before we decide anything. Pasted markdown
There May Be More Than One Option
Depending on the home and the seller’s situation, we can also look at:
Seller financing — sometimes helpful when a seller has enough equity and can offer terms that are more attractive to the buyer.
Assumable loans — some FHA, VA, and USDA loans may be assumable, which can be a huge benefit if the existing rate is much lower.
Closing-cost help — for some buyers, reducing the cash they need at closing can make just as much difference as changing the price. Pasted markdown
None of these are one-size-fits-all, and they all need to be reviewed carefully with the buyer’s lender and, where appropriate, legal or financial professionals.
My Job Is to Help You Look at All of It
Selling in a slower or changing market can feel personal, even when it isn’t. It can be frustrating to wait, adjust, and second-guess whether you’re doing the right thing.
My job is to help you sort through the options, understand the tradeoffs, protect your equity where we can, and make decisions based on what gives your home the best chance of selling.
Sometimes that means price.
Sometimes it means changing the marketing strategies.
And sometimes it means using financing creatively to make the home work better for the buyer.
Before we automatically reduce the price again, I want to make sure we’ve looked at all of it. We are here to help you explore all of your options! Reach out today.