Again, it depends on your situation:
If you are short on cash, seller paid closing costs can help ensure you have the down payment needed for your loan and all funds for closing.
If you have the cash, putting at least 20% down may be your next goal and having the seller pay closing costs may help get you to 20%.
If you feel your payment is on the high side and don't plan on spending money to refinance anytime soon, then buying down your interest rate makes sense.
If your payment is already low and you have enough funds to close... then lowest price is the better choice.
Remember, the more you borrow, the longer you will likely finance your home and the more you pay in interest, ultimately the more you will pay for your home.