Let’s talk about buying down the rate as a negotiating tool and why, from the perspective of a buyer, as well as a seller, it can actually make much more sense than just arguing about how much of the list price you're actually going to end up at!

Here is a specific example- I looked at a $1.25 million purchase with a 20% down, with a loan amount of $1 million. In today's market, the analysis shows that a seller can save the buyer $262 a month by buying down their rate one point or $10,000 on that million dollar loan. So, why is that appealing to a seller as well as a buyer

So often, the seller can pay less to do a buy down to get the buyer comfortable then they would have to actually lower the price of the purchase. Rather than just negotiating about 2%-5% off the list price, you’re actually trying to make it much more meaningful in terms of the monthly payment that's actually going out. This incentive is also often more meaningful to the buyer and the seller can do it with less money.