In the days of high inventory and long days on market, their are several things you as a seller can do to entice a buyer to buy your house today. In the mortgage business, we see several different approaches that people take that really have a positive effect on selling a home quickly. One of the best tactics I see regularly is a rate buy down.
Keep in mind that the lender on a home will only allow a home seller to contribute a certain amount (3% for example) towards the buyers closing costs and prepaid costs. Starting with that figure in mind, we as sellers can decide what we are willing to give to the buyer in order to make the deal more enticing. It may cost you $1,000 or more to lower your prospective buyers payment by $75 per month. Sure, $1,000 is a lot of money. Consider, however, that it could help you to sell your house a few months faster by offering to buy down the mortgage rate. Now that $1,000 just saved you a few months of carrying costs and maintenance – well worth the cost!
Buying down a mortgage rate can decrease your buyers payments dramatically. Their are several different kinds of mortgage buy-down programs including those that keep a low rate for 30 years, or those that slowly step the rate back up to par over less than 3 years. Either way, being flexible by offering a rate buy-down to your prospective buyers will help to sell your real estate fast.
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Andy Eastman has been in the home mortgage lending business for more than 12 years. He consistently ranks at the top of his mortgage group for number of closes. 
Any edge helps right now. Even though rates are row, a buy down can help a buyer afford just a tad more house which might make a deal work.
The rates are so low right now that you wouldn’t think that you would need a buy down but I guess it can’t hurt!
I’ve recommended a few clients to do this with good success. For buyers that are on the fence, it can be one of the factors that nudges them off.
It’s always tough to decide whether you are best getting the discount in closing costs or trying to use it to buy down your rate.
I personally would rather have the $1,000 discount on my closing costs than applying it to a rate buy down. Some people though like to save a little each month rather than the lump sum up front.
Will try that when I sell my place.