When a Seller lowers his price by $10,000, it lowers a potential Buyer's monthly payment by about $50/month.
If the Seller offers a concession package for $10,000 the potential Buyer can utilize those funds to best suit his/her needs.
1.) Reduce Purchase Price.
2.) Pay closing costs
3.) Discount his Interest rate/payment
a.) for the life of the loan (Permanent Buydown)
b.) for the first two years. (Temporary Buydown) Lower payment by hundreds of dollars/month*
4.) Any combination of the above.
*Temporary Buydown Calculator: http://www.321advantage.com/buyers-calculate-your-rate
Learn why Standard Price Reductions are ineffective when it comes to increasing market potential and expanding your pool of qualified Buyers:
MJ Peterson Real Estate