Should I Reduce My Price or Offer Buyer Incentives?

When a price reduction makes more sense

• You're getting very few showings, which means buyers aren't even clicking.
• Your price is just above a common search cutoff, like $500K or $600K.
• Comps have come in lower since you listed.

Read When Should I Reduce My Listing Price? and How Many Showings Before an Offer?

When a buyer incentive makes more sense

• You're getting showings but no offers.
• You're competing with builders advertising incentives.
• Your buyers are payment-sensitive, like first-time or VA buyers.

The math, in plain terms

On a $500,000 home, a $10,000 price cut lowers a buyer's payment by only about $60–70 a month at today's rates. Putting that same $10,000 toward a rate buydown can lower the payment by much more, especially in the first years. Your lender can run the exact numbers.

More detail: Should I Offer a Mortgage Rate Buydown?, Should I Offer Buyer Closing-Cost Assistance?, and Can a Buyer Ask the Seller to Pay Closing Costs?

If an offer does come in low

Don't dismiss it. Counter based on the comps. See Should I Accept an Offer Below Asking Price? Then check your bottom line with How Much Money Will I Make Selling My House?

See your competition

Check the Mansfield listings in your range to see what buyers are comparing you to.

More Questions I Hear About This

Is a rate buydown better than a price cut for sellers?

Often, yes. It can do more for a buyer's monthly payment and keeps your recorded sales price higher, which also helps your neighbors' comps.

How much should I offer in buyer incentives?

It depends on your price point and the competition. I look at what similar homes and builders nearby are offering.

Keep Reading

• Why Are Some Mansfield Homes Selling While Others Sit on the Market?
• How Do I Compete With New-Construction Homes When Selling a Resale Property?
• All 19 Mansfield questions answered by a Mansfield TX Realtor