Let's Ask Katie - July 2026

Hi Katie, 

We are selling our home and a buyer’s agent just asked if we would consider a seller buy down.  What is that and is it a good idea for us?   Clyde and Sandy, Newport Beach

Hi Sandy and Clyde, 

In a shifting market, savvy sellers are looking for ways to make their homes stand out without just slashing the price. One of the most powerful tools in our toolkit right now is the seller buy-down. While a flat seller credit towards closing costs is nice, a buy-down offers a much bigger "wow" factor for potential buyers.

So, how does it work? Instead of the buyer getting a one-time lump sum at the closing table, the seller pays an upfront fee to the buyer's lender to lower their interest rate—either for the first few years or the life of the loan.

The math is where it gets exciting. A $10,000 price reduction might only save a buyer about $60 a month. But that same $10,000 used for a rate buy-down could slash their monthly payment by hundreds of dollars. It increases their purchasing power and provides long-term financial relief that a one-time credit just can't match. By offering a buy-down, you aren’t just selling a house; you’re selling a much more affordable lifestyle. It’s a win-win that helps move properties faster while keeping your net proceeds higher than a massive price cut would.

Katie Machoskie is a REALTOR and Certified Real Estate Negotiator As Founder of the Machoskie & Associates team at COMPASS in Orange County, with over 23 years of experience and over $1.4 Billion in sales. She and her team of neighborhood specialists are ready to assist you anywhere in OC. Have a question? Email her at [email protected] DRE#01380037 Follow her on Instagram @machoskiehomes.com