Kenna Real Estate Group · Colorado sellers
63% of Denver-area sellers gave a concession this year, averaging about $10,000. Here is when to offer one, when to cut the price instead, and the net-proceeds math either way.
A live person answers. Not a robot, not a phone tree.
A credit is a targeted price cut. $11,200 off the price lowers a buyer's payment about $74 a month. The same $11,200 as a 2-1 buydown lowers it $616 a month in year one, and it costs you exactly the same at closing. That is why 63% of Denver-area sellers gave a concession this year, and why the ones who did netted about 98% of list while the ones who held out and cut late netted about 93%.
Sellers giving a concession
63%
Average about $10,000.
Net of list, priced right + credit
98%
Sold in about 53 days.
Net after a late price cut
93%
After 50+ days on market.
2-1 buydown cost to you
$11,200
Paid at closing from proceeds.
| What you see | The problem | The move |
|---|---|---|
| Few showings | Price is above the buyer pool | Price cut of 3% to 5%, one time |
| Showings but no offers | Payment or condition doubt | Offer a $10,000 to $15,000 credit for buydown or closing costs |
| Offers with repair lists | Condition | Credit in lieu of repairs; do not hire contractors |
| Under contract, buyer wavering at 7% | Payment shock | Fund a 2-1 buydown to keep the deal |
On a $600,000 sale with a $380,000 mortgage, a $10,000 credit turns $220,000 of gross equity into $210,000 before commissions and title, the same as a $10,000 price cut. The difference is what the buyer gets: $66 a month off for 30 years from the price cut, or $616 a month off in year one from the buydown. Buyers feel the second one. Get your own number on the home value page or with a Smart Pricing Report.
Put it in the first line of the listing: "Seller offering $10,000 toward buyer closing costs or rate buydown." It resets attention the way a price cut does, without changing the price buyers see on their alerts. Pair it with new photos and a fresh first paragraph. Read how Kenna markets a home.
Lenders cap what a seller can pay: 3% to 9% on conventional loans depending on the buyer's down payment, 6% on FHA, 4% plus closing costs on VA. Your listing agent should know the buyer's loan type before you agree to a number. Full table on the buyer version of this page.
kennarealestate.com · free guide
Your net at list, at a 3 percent cut and with a $10,000 credit, side by side, plus the listing wording and the buyer-loan caps
A credit is a targeted price cut: the same money at closing, a much bigger change to the buyer's payment. Sellers who priced right and offered a credit netted about 98% of list; those who held out and cut late netted about 93%.
Prepared by
KENNA REAL ESTATE GROUP
Call or text 303-955-4220 · A live person answers.
Call or text 303-955-4220. A live person shows you the net at list, after a cut, and with a credit, using this week's comps.
Call or text 303-955-4220Get your home valueNo, but 63% of Denver-area sellers did this year, because the buyer pool at 7% is thin and a credit changes the buyer's payment more than a price cut changes your net.
About 2.3% of the loan amount: roughly $11,200 on a $480,000 loan, paid at closing out of your proceeds. It is the same money as a $11,200 price cut, but it lowers the buyer's year-one payment $616 a month instead of $74.
Cut the price when the home is not getting showings; the price is what buyers see first. Offer a credit when showings are steady but offers stall; the credit fixes the payment problem that is stopping them.
Yes, by the amount of the concession. Sellers who priced right and offered a credit right now netted about 98% of list. Sellers who held out and cut later netted about 93% of the original price.
Yes. "Seller offering $10,000 toward closing costs or rate buydown" in the first line of the listing resets buyer attention the same way a price cut does.
Fix what stops a loan: roof leaks, safety items, broken systems. Everything cosmetic is better handled as a credit; buyers pick their own finishes and you skip contractor delays.