Seller Credit vs. Price Reduction: Which Saves a Home Buyer More?
Posted by Mike Seebinger on
Seller Credit vs. Price Reduction: Which Saves a Home Buyer More?
When negotiating the purchase of a home, buyers naturally focus on price. If a seller is willing to give up another $5,000, $10,000 or $15,000 to put a deal together, asking for that amount off the purchase price may seem like the obvious choice.
But it is not always the only option worth considering.
Depending on the buyer's financing and the terms permitted by the loan program, seller dollars may potentially be used toward closing costs or a mortgage rate buydown instead. Those alternatives can affect a buyer's upfront cash requirement or monthly payment very differently than reducing the purchase price.
After more than 20 years helping buyers and sellers negotiate real…
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