If your Seattle home has been on the market a few weeks longer than you hoped, you have probably had the conversation. Do we drop the price? Or is there something smarter we can do with that same money?

I have this conversation with sellers almost every week right now. My honest answer is that a price cut and a rate buydown can cost you the exact same amount and land very differently with buyers. Let me walk you through why, with real numbers.

Why This Question Matters So Much Right Now

Seattle's market shifted this fall. Resale inventory climbed above four months of supply for the first time in more than a decade, and buyers have more choices than they have had in years. Homes that would have sold in a weekend in 2021 are now sitting for a month or more.

At the same time, rates have climbed. Freddie Mac's weekly survey put the 30-year fixed average at 7.32 percent on October 22, 2026, compared with 6.19 percent a year earlier. That gap is what buyers feel every time they run a payment calculator.

Here is the thing most sellers miss: buyers do not shop on price alone. They shop on monthly payment. That is exactly why a rate buydown can sometimes do more work than a price cut of the same size.

What a Price Cut Actually Does for a Buyer

Let's use a simple example. Say your home is listed at $900,000 and your buyer is putting 20 percent down. That means a $720,000 loan. At 7.32 percent, principal and interest come to roughly $4,946 a month.

Now you cut the price 2 percent, or $18,000. The buyer's loan drops by $14,400, and their monthly payment falls by about $99. That is real money, but it is not a number that changes anyone's life or opens up a new pool of buyers.

A price cut does have genuine strengths, though:

1. It moves you into new search brackets. Dropping from $905,000 to $875,000 can put your home in front of buyers who filter at $875,000 or $900,000.
2. It is simple and works for every buyer. Cash buyers, FHA buyers, and conventional buyers all benefit equally.
3. It signals that you are serious. In a slower market, a well-timed adjustment can restart interest from buyers who have been watching.

What a Rate Buydown Actually Does for a Buyer

A rate buydown means you, the seller, pay money at closing to lower the buyer's interest rate. There are two main kinds, and they work very differently.

Permanent buydown

Here, your money pays for discount points that lower the buyer's rate for the life of the loan. Pricing varies by lender and changes daily, but as a rough illustration, if that same $18,000 bought the buyer's rate down to around 6.7 percent, their payment would drop by roughly $300 a month. That is about three times the monthly impact of the price cut, for the same cost to you.

Temporary 2-1 buydown

A 2-1 buydown lowers the rate by 2 percentage points in year one and 1 percentage point in year two, then it returns to the full rate. On our $720,000 loan, that means saving about $939 a month in year one and $480 a month in year two. The total cost is around $17,000, close to our price cut.

That front-loaded relief is attractive, especially for buyers stretching to get in. The tradeoff is that the savings end after two years, and lenders typically still qualify the buyer at the full rate. So it helps with cash flow, not with how much house they can afford on paper.

The Rules That Limit What You Can Offer

You cannot offer unlimited help. On conventional loans, Fannie Mae caps seller contributions (including buydowns) based on the buyer's down payment:

• Less than 10 percent down: up to 3 percent of the price
• 10 percent to just under 25 percent down: up to 6 percent
• 25 percent or more down: up to 9 percent
• Investment properties: 2 percent

FHA and VA loans have their own limits, so the right structure depends on who your buyer is. This is one reason I like to talk with the buyer's lender early, before we put a number in a counteroffer.

So Which One Gets Your Home Sold Faster?

There is no single right answer, but here is how I think about it with my clients.

A price cut usually makes more sense when:

• Your home is priced above where comparable homes are actually selling
• You are close to a search bracket threshold that a cut would cross
• Showings are light, meaning buyers are not even walking in the door

A rate buydown usually makes more sense when:

• Buyers are touring but stalling on affordability
• Your price is well supported by recent comparable sales
• You are in a price range where most buyers are financing, which covers much of Seattle's $700,000 to $1.5 million market

A practical middle path I use often: keep the list price, and advertise that you will contribute toward a buyer's rate buydown or closing costs. That way the offer appears in the listing, buyers' agents can run the numbers for their clients, and you are not lowering the price before you see real interest.

One caution. A buydown does not fix a home that is overpriced. If the appraisal comes in low, you are still having a price conversation. A buydown works best on a home that is already priced right but needs help with the monthly math.

The Bottom Line for Seattle Sellers

The money you give up is the same either way. What changes is how that money shows up in a buyer's life. In a 7 percent world, a dollar that lowers the monthly payment often goes further than a dollar that lowers the price.

If you are thinking about selling, or your home is on the market and not moving the way you hoped, reach out. I would love to sit down, look at your specific numbers, and help you figure out which lever actually makes sense. My team at Emerald Group walks sellers through this decision every week, and we will give you a straight answer, not a sales pitch.

Ready to sell in Seattle? Brennen Clouse at Emerald Group is here to help. Call or text 206-899-9101 or visit emeraldgroupre.com.