A lot of Dallas–Fort Worth homes are sitting longer this fall, and sellers are asking the same question: do I cut the price, or do I pay for the buyer’s rate? Keeping Current Matters put the national version of this question on the table this week (their post); here’s the DFW math, from the lender’s side of the closing table.
The two tools
Price cut. You lower the list price. Every buyer sees it, the Zillow alert fires, and the home re-enters searches at the new number. Cost to you: the full amount, forever.
Seller-paid rate buydown. You keep the price and instead pay a lump sum at closing that lowers the buyer’s interest rate — either for the first 1–3 years (a “temporary” 2-1 or 3-2-1 buydown) or for the life of the loan (permanent points). Cost to you: usually 2–3% of the loan amount. The buyer’s payment drops a lot more than a price cut of the same size would drop it.
The $400,000 example (today’s 7.30%)
A buyer putting the minimum down on a $400,000 DFW home at today’s rate pays about $2,742/month in principal and interest.
| Seller does… | Seller’s cost | Buyer’s P&I (year 1) |
|---|---|---|
| Nothing | $0 | $2,742 |
| Cuts price to $385,000 | $15,000 | $2,639 (−$103) |
| Pays a 2-1 temporary buydown | ~$12,500 | $2,221 (−$521), then $2,476 in year 2, $2,742 from year 3 |
| Pays ~2 points permanently | ~$8,000–$9,000 | ~$2,600 (−$140ish) for all 30 years |
Same money, three very different outcomes. A $15,000 price cut saves the buyer $103 a month. A cheaper 2-1 buydown saves them $521 a month in the year they’re buying furniture and fixing the fence. Guess which one gets the showing scheduled.
When the price cut is still right
- The home is overpriced versus sold comps, not just unlucky. A buydown doesn’t fix an appraisal problem.
- Your buyer pool is cash or investor — buydowns mean nothing to them.
- The home is in a band with lots of competition (think $300–450K in Frisco, McKinney, Fort Worth) where search filters decide who sees you. Getting under a round number ($399,900 vs. $410,000) can matter more than payment math.
When the buydown wins
- The home is priced right but the payment scares people. That’s most of DFW right now.
- Your buyers are first-time or FHA/VA buyers — payment-sensitive, cash-poor. Buydowns are allowed on FHA, VA and conventional loans within seller-concession limits (we check the limit before you write it into the listing).
- You want to protect the comps on your street (or you’re a builder with ten more to sell).
For buyers: ask for it
If you’re the buyer, this is the concession to request. Sellers who flatly refuse a price cut will often pay a buydown because the list price — and their pride — stay intact. We write the exact language for your agent to put in the offer, and we run both versions so you can see the year-one and lifetime numbers side by side.
First-time buyers in DFW can stack a seller-paid buydown on top of our 0% down + up to $70,000 renovation program (primary residence only) and down payment assistance. Buy the house that needs work, roll the renovation into the loan, and let the seller buy down your payment for the first two years. Program details →
🎯 The Néstor Caussade Team can help
If you’re buying, building, flipping or refinancing anywhere in Dallas–Fort Worth or across Texas, this is what we do all day. DFW Mortgage Pros — The Néstor Caussade Team is DFW’s authority on construction loans, fix & flip and rehab lending for investors, and the go-to team for first-time buyers who want 0% down with up to $70K to renovate their own home. Thirteen years of closing the deals other lenders turn down, in English, Spanish and ASL. Free consultations on buying, investing, refinancing and lowering your rate — especially if you’ve been told no somewhere else. Realtors: we’ll run the price-cut-vs-buydown numbers for your listing before the price-reduction conversation with your seller.
Bottom line
- A $15K price cut = ~$103/month to the buyer; a ~$12.5K 2-1 buydown = ~$521/month in year one
- Cut the price when the home is overpriced or your buyers are cash/investors
- Pay the buydown when the home is priced right and buyers are payment-sensitive (most of DFW today)
- Buyers: ask for the buydown; it’s the concession sellers say yes to
- First-time buyers can stack it with 0% down + renovation
See what you qualify for in 2 minutes — or text me at 817-697-4281 and I’ll run both scenarios on the house you’re looking at. Hablo español.
Rates and programs shown are examples, change without notice and are not a commitment to lend. All loans subject to credit approval. NMLS #1538512 · NXT Mortgage, a division of NEXA Mortgage, LLC, NMLS #1660690. Equal Housing Opportunity.
