Stop Negotiating the Price. Start Negotiating the Terms.

A $10,000 price reduction saves you about $58 per month. That same $10,000 applied as a seller concession toward a 2-1 rate buydown saves you $464 per month in year one. In 2026's buyer-friendly market, negotiating seller concessions for a temporary rate buydown is the single most underused strategy available. Nearly half of all home sales already involve concessions, and buyers with the right lender and agent are saving hundreds per month by structuring deals around terms instead of price.

Last month, I worked with a buyer in the Pacific Northwest who was back and forth with a seller over $10,000 on the purchase price. The seller wouldn't budge. My buyer was frustrated. She felt like she was losing.

I told her to stop fighting over the price and start fighting over the terms. We asked the seller for $10,000 in seller concessions instead of a price reduction. The seller agreed in less than 24 hours.

That $10,000 went toward a temporary rate buydown that dropped her monthly payment by $464 in the first year. If we had gotten the $10,000 price cut instead? Her monthly payment would have dropped by $58.

Same dollar amount. Completely different outcome. And most buyers have no idea this strategy even exists.

Key Takeaways

• Every loan type allows concessions, but the maximum percentage varies. Conventional loans range from 3% to 9%, FHA allows up to 6%, and VA allows up to 4%.
• You must qualify at the full note rate, not the buydown rate, so this doesn't change your loan approval.
• Sellers are more likely to agree to concessions than price cuts because concessions don't lower the recorded sale price.
• Nearly half of all home sales in early 2026 include seller concessions, according to industry data.
• A $10,000 seller concession applied to a 2-1 rate buydown saves roughly 8x more per month than a $10,000 price reduction.

Why a $10,000 Price Cut Barely Moves the Needle

A price reduction sounds like a win, but the math tells a different story. On a 30-year mortgage at 6.5%, a $10,000 reduction in purchase price saves you roughly $63 per month in principal and interest. Factor in the lower property tax and homeowners insurance on a marginally smaller purchase price and you're looking at about $58 to $65 per month in real savings.

That's real money, but it's not life-changing. You'd save roughly $700 per year.

Now imagine the seller had given you that same $10,000 as a credit toward a temporary rate buydown instead. On a $380,000 loan at 6.5%, a 2-1 buydown funded by $10,000 in concessions would lower your payment by $464 in year one and $232 in year two. That's $5,568 in year-one savings alone and roughly $8,352 in total savings across the two-year buydown period.

Sellers are more likely to agree to concessions than price cuts because concessions don't lower the recorded sale price. From the seller's perspective, the house still "sold for" the full asking price.

In today's market, homes are sitting on the market longer than they have in years. Sellers who have had their home listed for 60 or 90 days are usually willing to work with you on terms if it means getting the deal done.

I help my clients build this strategy into their offer from the beginning. It's not an afterthought. It's part of the plan.

By Dawn Robbins Group | NMLS# 432345

This content is for educational purposes only and does not constitute financial advice. Every buyer's situation is unique. Contact Dawn Robbins Group for personalized guidance.

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