Price Drop or Payment Drop? Why Smart Strategies Matter More Than Waiting on Rates

There’s a lot of chatter in today’s market about interest rates and whether it’s “the right time” to buy or sell.
I hear it all the time:

• “We’re going to wait until rates drop.”
  
  
• “We’ll just lower the price if it doesn’t sell.”
  
  

But what if I told you that the smartest financial move might not be lowering the price at all—for either buyers or sellers?

Here’s an actual example from a home I’m marketing:

• Price: $369,000
  
  
• Buyer puts 5% down
  
  
• Current average rate: 6.5%
  
  

Option 1: Lower the price by $9,000

Sounds good on paper, right? But here’s what it really does:

• Payment savings: ~$54/month
  
  
• Over two years: ~$1,297 total savings
  
  

Option 2: Keep the price, but offer a 2/1 rate buydown

With a seller concession of roughly $8,000 to cover the cost of the 2/1 buydown:

• Year 1 payment based on 4.5% effective rate → Saves $439/month → $5,274 in one year
  
  
• Year 2 payment based on 5.5% effective rate → Saves $225/month → $2,704 in year two
  
  
• Total savings in first two years: $7,978
  
  

That’s six times more savings than the price drop—and buyers feel it every single month, not just in their imagination.

Let’s be honest, most buyers aren’t worried about how much they’re paying over 30 years. What keeps them up at night is:

• “What’s my monthly payment?”
  
  
• “Can I afford this with everything else going on in life?”
  
  

And that’s why creative financing solutions like interest rate buydowns, seller credits, and grant programs are game changers.

In fact, this is one of the best ways to:

• Compete with cash buyers who don’t care about rates.
  
  
• Get into the home you love now instead of waiting for rates to drop.
  
  
• Free up cash flow for furniture, upgrades, or just peace of mind.

If you’re selling, your goal isn’t just to put a “For Sale” sign in the yard and hope for the best. Your goal is to sell for the highest possible net while attracting the most qualified buyers.

Here’s the hard truth: buyers shop monthly payment, not list price.

When you offer something like a rate buydown:

• You instantly stand out from other listings.
  
  
• You attract buyers who might not otherwise afford your home.
  
  
• You potentially sell faster (and for closer to list price) because you’re solving the buyer’s biggest pain point.

I get it—rates don’t feel “great” right now. But here’s the thing: you’re not just waiting on rates, you’re waiting on life.

Here’s what happens when people wait:

• Home prices often keep rising: When rates drop, competition heats up, and buyers flood the market—pushing prices up.
  
  
• Your life doesn’t stand still: If you need a new space because of work, family, or lifestyle changes, waiting often costs more in quality of life than it saves in dollars.
  
  

You can always refinance later: If rates drop, you can refinance. But you can’t go back and buy that perfect home that already sold.

My job isn’t just to help you find a home or list a property—it’s to help you strategize.
Sometimes that means:

• Offering creative seller credits instead of chasing price reductions.
  
  
• Connecting buyers with lenders who specialize in programs like buydowns, zero-down options, or first-time buyer assistance.
  
  

Helping sellers market payment, not just price—because that’s what today’s buyers care about.

1. Talk to a Realtor who thinks creatively (Hi 👋 that’s me).
   I don’t just pop your home on the MLS and hope. I look for strategies to make it stand out.
   
   
2. If you’re buying, explore your options.
   Don’t assume the only way to lower your payment is to wait for rates to drop or beg for a lower price. There are tools available right now that could save you thousands.
   
   

If you’re selling, market your concessions.
A small seller credit—when structured smartly—can be more powerful than a price reduction and can actually leave you with a higher net in your pocket.