I mentioned something called a "2-1 Buy Down" in other posts, but I'll risk being a repetitious bore and write about it again. I think it's an option that will get your home a lot attention & could really open up your pool of buyers.
One caveat - this is my understanding of a buy down as a nonprofessional.
Here's how I understand it works:
In a 2-1 buy down, is sort of similar to buying points, but has bigger immediate advantages for the buyer. It basicially subsidizes the buyer's mortgage for two years.
Suppose your buyer has a 6.75% interest rate on her loan. You pay the difference as she had a 4.75% interest rate on her loan.
The second year, you pay the difference as if she had a 5.75% interest rate on her loan.
The example below shows how just over 8k from the seller saves the buyer over $440/month on his mortgage the first year and over $220 the second year.
This example assumes a 30-year fully amortized mortgage.
Say your loan balance is $350,000 and the interest rate is fixed at 6.75% for 30 years. The seller (or you) could "buy down" the interest rate by paying a lump sum of $8,063. This is how it works:
First-year interest rate is 4.75%, payable $1,826 per month.
Second-year interest rate is 5.75%, payable $2,043 per month.
Years three through 30, interest rate is 6.75%, payable $2,270 per month.
First-year savings (as compared to $2,270 per month) is $444 per month or $6,332.
Second-year savings (as compared to $2,270 per month) is $228 per month or $2,731.
Add up the annual savings: $6,332 + $2,731 = $8,063.
Therefore, it costs $8,063 to buy down the interest rate and payments for two full years.
Note: Lenders typically require a 5% down payment for a 2-1 Buydown.