A Seller Buydown is a strategy for both buyers and sellers.
The Seller Buydown strategy is a multifaceted solution and acts as an equilibrium to balance out a seller and a buyer in a real estate transaction. It allows a buyer to purchase property and achieve the financial benefits they might need or want to move forward while still allowing the seller to maximize the most amount of equity from the sale of their property. Both parties benefit from this strategy.
A property priced fairly that sits on the market for a long period of time can lead to offers that could potentially lead to the seller losing money should they have to accept under certain circumstances. Meanwhile, a buyer may be able to afford the home at a fair price if they utilize the Seller Buydown strategy that would allow them to make the right offer that benefits both the buyer and the seller. So, instead of suffering a costly price drop, the seller can sell their home at the price that makes the most sense, and the buyer can get the home they want without compromising their financial goals as well.
For the buyer, this strategy allows for deeper financial benefits as opposed to traditional strategies in which a down payment is decreased or a lower offer is made to the seller in order to achieve a payment based on qualification.
For the seller, this strategy can significantly reduce the time their property sits on the market and decrease lowball offers. When a property sits on the market for a certain amount of time, the seller is then pressured to drop the price of their listing in order to entice buyers while compromising their own financial goals in the long run. If the property is listed at a fair market price and the real estate agent has done their due diligence by pulling up the comps in the neighborhood, the Seller Buydown strategy can be the best strategy for both a buyer and seller.