In a soft real estate market, try this one crazy trick to lower your mortgage payment
Sure, you could ask to update the bathrooms or chop a few thousand off the price. But the real savings is asking for an interest-rate buydown.
Like everything else related to the economy, the real estate market is wearing wobbly boots (thanks, Trump tariffs!), with people ditching their deals willy-nilly and sellers offering concessions they wouldn’t have dreamed about three years ago. I spoke with Miami-based Christina Pappas about how to make the most of this soft market if you are embarking on a house-buying journey. She is a regional vice president of the National Association of Realtors and president of the Keyes Co. real estate agency.
This interview has been lightly edited for grammar, clarity and readability.
Vanessa McGrady: I am writing about the softening real estate market, and I wanted your take on what buyers should be looking for in terms of concessions. How much is too much? What kind of negotiation strategy should they take?
Christina Pappas: First off, every local market is different, so it's important to work with a real estate agent who knows where and how much you can push.
What I think is unique right now is that instead of asking for a price reduction, buyers are asking for seller concessions—specifically toward reducing the interest rate. Even just a 2% shift in purchase price, redirected toward a mortgage rate buy-down, can make a huge difference.
You can work with your mortgage loan officer on this. Many of them can structure something like a 2-1 buy-down [a 2% reduction the first year, 1% the second, then back to the fixed rate afterward] or even a permanent buy-down, often using 2–4% of the purchase price. So rather than asking for a $10,000 price reduction, ask for a concession toward your interest rate—you may be able to buy down your rate by 1% for the life of the loan.
VMc: Wouldn’t a price reduction help with property taxes, though? Is it better to lower the purchase price for that reason, or do you save more with the lower monthly payment from the interest rate reduction?
CP: It’s typically more impactful on your monthly payment, especially with a permanent buy-down. For a $500,000 home, a 2–4% rate drop can drastically lower monthly payments. Property taxes, depending on your area, usually run around 1–1.5% of the purchase price. So a $50,000 reduction might not lower your property taxes all that much—but it will lower your monthly mortgage significantly. [A $500,000 loan for 30 years at 6% costs nearly $3,000 a month; the loan at 4% is $2,387.]
VMc: Got it. So how would a buyer present that in an offer?
CP: It depends on how you structure the offer. You might offer $500,000 and then request a 2% credit from the seller toward your mortgage interest rate. You can frame it as a seller-paid buy-down, and that number just needs to make sense based on what the lender can apply.
We’ve even used this proactively in listings. Instead of dropping the price on a $500,000 home by 4%, we keep the list price and offer a special interest rate incentive to buyers. It’s a great tactic, especially in areas with high levels of financed purchases. It's a significant incentive in a market where cash offers aren’t dominant.
VMc: That’s such a good trick—I hadn’t even heard of that.
CP: Right? We just did this, which is why I thought of it when I saw your email. It’s creative and effective. From a seller’s perspective, it’s also easier to offer that kind of concession than to lower the list price. And for buyers, it’s a bigger financial impact.
VMc : What about in this market—are buyers still asking for repairs like painting, roof replacements, patio fixes, etc.?
CP: Yes. After interest rate buy-downs, the next most common seller concession we're seeing—especially during the inspection period—is related to the roof. The age and condition of the roof is a major concern for buyers because it can affect insurance eligibility and cost.
If the roof has issues, buyers often ask for a repair, replacement, or a credit at closing. It’s probably the number one item we see buyers negotiating on after inspections.
VMc: Would that also include things like fire abatement?
CP: Yes, anything that impacts insurance costs. I live in Florida, so here it’s often hurricane-impact windows, roofs, plumbing, and other structural issues. Buyers will typically ask for a credit at closing so they can take care of these issues post-purchase.
VMc: So it doesn’t make as much sense to ask for cosmetic things like paint or kitchen updates?
CP: Exactly. We’re still mostly in an “as-is” market. If a kitchen is outdated but functional, a buyer might plan to renovate later, but they don’t usually get a seller credit for it.
The key areas where we’re seeing successful concessions are things that impact habitability or insurance. Another big one lately is buyer broker commissions. Many buyers still request that the seller or listing broker pay the buyer agent’s commission as part of the deal.
VMc: Right, that changed recently. How long would you say the market has been like this? And is there a “better” time to buy?
CP: Markets are seasonal, and it depends on the location. In many areas, winter is slower—you’ll see less inventory and less competition. Right now, in spring, we’re at the peak of both inventory and buyer interest. People want to move before summer or before changing schools.
As we move into summer, there might be fewer homes listed and fewer buyers, so things slow down. And during the holidays, there are even fewer listings and buyers—but that also means less competition.
So while it might not technically be a buyer’s market over the holidays, you might find more motivated sellers willing to make a deal.
VMc: You might run into a motivated seller, too.
CP: Exactly. If a seller is listing over the holidays, they likely need to move before year-end. That can be a great opportunity for buyers—but of course, the trade-off is that there will be fewer options to choose from.