Many lenders are promoting this. It isn't a bad option. I suggest the buyer make sure the lender approves the amount they are allowed to receive. 

Asinine or Audacity?

Ha ha, no it's just that everything is negotiable and some agents took a seminar that teaches that technique. It's 50% ignorance of history and 50% chutzpah: On one hand demonstrating how inexperienced they are - not realizing we've worked markets with higher rates, but on the other hand it demonstrates a willingness to do everything they can for their buyer - hard to fault that.

I have heard of this happening, but haven't been doing many transactions myself recently.  I think it is the same thing as asking for seller concessions but it is just being applied to buy down the rate instead of closing costs and such.  Whatever makes the deal work, so if the bottom line works for the sellers, why not.

I haven't but it seems to be a trend at present time.  Pops up now and again any time interest rates rise rather rapidly.  I feel most lay people don't quite understand it, so why add to the confusion.

Not yet, Ray but terms will get very creative soon enough!

It may become the new normal.  

As others have mentioned we need to ask what's in it for the seller.

No, I think this goes along with the agents who think we're in a buyer's market.  Reality will set them straight real quick.

We have seen sellers offering buy-downs in the MLS for the last couple of months.

actually we've had more cash buyers.

Ray that whole buy down thing comes and goes with markets. I've seen it all after 35 years and honestly nothing phases me.  Everything is negotiable and buyers and sellers know that.  I would consider it a more 'reasonable' market.

Ray I have no idea of why I have 2 of the same answers.  Sorry.  I tried to get rid of the 2nd one but system won't let me....asking for my keys.  Guess I lost them LOL

Learned about it one week, received an offer with this request the next week. It's all negotiable.

Real Estate is an industry that is always alive meaning it never stands still adapting as it goes while sitting in place truly something to behold & participate in. Creative financing pops up when the cycle demands it. When developers got caught short, they did buy-downs rather than lose the project to bankruptcy or foreclosure.  Credit cards offer the use of free money to get you started btw...I remember second TD's being lucrative & necessary too. Bridge money as well. They are all tools to be used by buyers, sellers & investors. 

No but buyers wanting to steal properties are showing up - and most of my sellers are not gonna waste time if there's no point.

$20,000 to pay for the rate buydown? What's the purchase price of the home? What type of loan?

Hi Ray... we've been discussing this option in my office for some weeks now. It's one way to maybe even market a home up-front. I don't know how much of it we'll see going forward, but we will see variations on this theme.

Someone just came back from a seminar I bet. Haven't heard doing this since seller had to pay VA points for the buyer. 20K is a chunk of change for that seller.

I have read about it but have no experience. 

We've been doing this in our market to soften the blow, especially for first-timers, who are experiencing interest rate sticker shock!

This, despite OUR profession being used to higher interest rates, they only know that interest rates have more than doubled in the past year. It truly is sticker shock to them!

People can ask for anything, we have a choice to say No.

Buy down is the new thing that my lenders are pushing for.

Same as Joan Cox is seeing in her market, I am seeing seller's offering a rate buy down.  Right now, a listing in my primary marketing area is offering a $15K rate buy down vs. lowering the price.  It's not always unrealistic buyers starting this conversation.  Lenders are rushing to find a way to make things appear better for buyers and buyers are eating it up.  Sellers, stuck in the mindset of early 2022 or 2021 think it's preferable to lowering price.

The interest rate buy-down seems to be getting more popular as we enter through this new challenging real estate market. Creativity is the Charm!

Some of the new homes builders are buying down the rate as an incentive.  I wouldn't suggest a buyer paying for a buy down as they will most likely refinance anyway soon.

Loan offices have been mentioning it for the last month or so, along with ARM's. I doubt if many sellers around here are ready to pay for a buyers rate buy down. They would be more likely to reduce price. Time will tell. It's more common with builders on new construction.

Haven't seen a single one yet.

You’ll soon be explaining Wrap Around Loans

Everything is negotiable, but I am not a fan of a seller contributing to a buy down.  Since most buyers don't stay full term, it is lucrative for the lender. 

Asking does not always provide the desired results.

Ray that whole buy down thing comes and goes with markets. I've seen it all after 35 years and honestly nothing phases me.  Everything is negotiable and buyers and sellers know that.  I would consider it a more 'reasonable' market.