Ray Henson, Realtor (eXp Realty of California, Inc. (lic. #01878277))

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Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

Many lenders are promoting this. It isn't a bad option. I suggest the buyer make sure the lender approves the amount they are allowed to receive. 

Nov 05, 2022 07:36 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Asinine or Audacity?

Ha ha, no it's just that everything is negotiable and some agents took a seminar that teaches that technique. It's 50% ignorance of history and 50% chutzpah: On one hand demonstrating how inexperienced they are - not realizing we've worked markets with higher rates, but on the other hand it demonstrates a willingness to do everything they can for their buyer - hard to fault that.


Nov 05, 2022 06:43 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I have heard of this happening, but haven't been doing many transactions myself recently.  I think it is the same thing as asking for seller concessions but it is just being applied to buy down the rate instead of closing costs and such.  Whatever makes the deal work, so if the bottom line works for the sellers, why not.

Nov 05, 2022 06:17 AM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

I haven't but it seems to be a trend at present time.  Pops up now and again any time interest rates rise rather rapidly.  I feel most lay people don't quite understand it, so why add to the confusion.

Nov 05, 2022 08:47 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Not yet, Ray but terms will get very creative soon enough!

Nov 05, 2022 08:02 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

It may become the new normal.  

As others have mentioned we need to ask what's in it for the seller.

Nov 05, 2022 09:41 AM
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

No, I think this goes along with the agents who think we're in a buyer's market.  Reality will set them straight real quick.

Nov 05, 2022 08:49 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

We have seen sellers offering buy-downs in the MLS for the last couple of months.

Nov 05, 2022 06:49 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

actually we've had more cash buyers.

Nov 05, 2022 11:52 AM
Anna Banana Kruchten Phoenix Broker
HomeSmart Real Estate - Phoenix, AZ

Ray that whole buy down thing comes and goes with markets. I've seen it all after 35 years and honestly nothing phases me.  Everything is negotiable and buyers and sellers know that.  I would consider it a more 'reasonable' market.


Ray I have no idea of why I have 2 of the same answers.  Sorry.  I tried to get rid of the 2nd one but system won't let me....asking for my keys.  Guess I lost them LOL

Nov 05, 2022 10:52 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Learned about it one week, received an offer with this request the next week. It's all negotiable.

Nov 05, 2022 09:37 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Real Estate is an industry that is always alive meaning it never stands still adapting as it goes while sitting in place truly something to behold & participate in. Creative financing pops up when the cycle demands it. When developers got caught short, they did buy-downs rather than lose the project to bankruptcy or foreclosure.  Credit cards offer the use of free money to get you started btw...I remember second TD's being lucrative & necessary too. Bridge money as well. They are all tools to be used by buyers, sellers & investors. 

Nov 05, 2022 08:02 AM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

No but buyers wanting to steal properties are showing up - and most of my sellers are not gonna waste time if there's no point.

Nov 05, 2022 07:10 AM
Jerry Thomas-Construction Loans
Cranbrook Loans - Farmington Hills, MI
Construction Loans in MI, OH, PA, VA, GA and FL.

$20,000 to pay for the rate buydown? What's the purchase price of the home? What type of loan?

Nov 05, 2022 06:05 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Ray... we've been discussing this option in my office for some weeks now. It's one way to maybe even market a home up-front. I don't know how much of it we'll see going forward, but we will see variations on this theme.

Nov 05, 2022 10:28 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Someone just came back from a seminar I bet. Haven't heard doing this since seller had to pay VA points for the buyer. 20K is a chunk of change for that seller.

Nov 05, 2022 06:51 AM
Peter Mohylsky
PMI. Destin - Miramar Beach, FL

I have read about it but have no experience. 

Nov 05, 2022 06:40 AM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

We've been doing this in our market to soften the blow, especially for first-timers, who are experiencing interest rate sticker shock!


This, despite OUR profession being used to higher interest rates, they only know that interest rates have more than doubled in the past year. It truly is sticker shock to them!

Nov 06, 2022 10:37 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

People can ask for anything, we have a choice to say No.

Nov 06, 2022 04:42 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Buy down is the new thing that my lenders are pushing for.


Nov 05, 2022 08:30 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Same as Joan Cox is seeing in her market, I am seeing seller's offering a rate buy down.  Right now, a listing in my primary marketing area is offering a $15K rate buy down vs. lowering the price.  It's not always unrealistic buyers starting this conversation.  Lenders are rushing to find a way to make things appear better for buyers and buyers are eating it up.  Sellers, stuck in the mindset of early 2022 or 2021 think it's preferable to lowering price.


Nov 06, 2022 02:42 PM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

The interest rate buy-down seems to be getting more popular as we enter through this new challenging real estate market. Creativity is the Charm!

Nov 06, 2022 02:01 PM
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Some of the new homes builders are buying down the rate as an incentive.  I wouldn't suggest a buyer paying for a buy down as they will most likely refinance anyway soon.

Nov 05, 2022 08:28 PM
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Loan offices have been mentioning it for the last month or so, along with ARM's. I doubt if many sellers around here are ready to pay for a buyers rate buy down. They would be more likely to reduce price. Time will tell. It's more common with builders on new construction.

Nov 05, 2022 01:56 PM
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

Haven't seen a single one yet.

Nov 05, 2022 12:27 PM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

You’ll soon be explaining Wrap Around Loans

Nov 06, 2022 10:10 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Everything is negotiable, but I am not a fan of a seller contributing to a buy down.  Since most buyers don't stay full term, it is lucrative for the lender. 

Nov 06, 2022 04:50 AM
Roy Kelley
Retired - Gaithersburg, MD

Asking does not always provide the desired results.

Nov 05, 2022 04:21 PM
Anna Banana Kruchten Phoenix Broker
HomeSmart Real Estate - Phoenix, AZ

Ray that whole buy down thing comes and goes with markets. I've seen it all after 35 years and honestly nothing phases me.  Everything is negotiable and buyers and sellers know that.  I would consider it a more 'reasonable' market.

Nov 05, 2022 10:48 AM