Real Estate Strategist
2-1 Buydown ROI
Don't just cut the price. Compare seller concessions and find the winning net for both parties.
Winning Path
Buydown
Seller Saving
$1,600
Standard Loan
Year 1 Monthly
$2,528
Seller Cost
None
Timeline Savings
Year 2$2,528
Year 3+$2,528
Top Scenario
2-1 Buydown
Year 1 Monthly
$2,027
Seller Cost
$8,400
Timeline Savings
Year 2$2,271
Year 3+$2,528
$10k Price Cut
Year 1 Monthly
$2,478
Seller Cost
$10,000
Timeline Savings
Year 2$2,478
Year 3+$2,478
The Strategy Breakdown
A 2-1 buydown is often more powerful than a price reduction. For example, a $10,000 price cut only lowers a buyer's payment by about $60/month. That same $10,000 used for a 2-1 buydown can save them over $500/month in the first year.
For Buyers
Lower qualifying income and massive cash flow relief in the first 24 months of homeownership.
For Sellers
Move the property faster without a major price-cut anchor that hurts neighborhood comps.