Buydown or Price Drop? Henderson Strategies That Work

Thinking about lowering your Henderson list price to spark offers? In today’s cooling market, a seller-paid interest rate buydown could create more buyer appeal for less money out of pocket than a visible price cut. You want to move without leaving equity on the table or scaring off qualified buyers. In this guide, you’ll learn how buydowns work, when they beat a price drop, and how to pick the right move with simple, local math. Let’s dive in.

Henderson market snapshot

Inventory across the Las Vegas Valley has risen, and prices eased from early 2025 highs. The September 2025 valley-wide median for single-family homes was $470,000, with a jump in homes listed without offers, signaling a shift toward balance between buyers and sellers. You can see the trend in local reporting on Las Vegas Realtors data and inventory growth. Recent coverage of median prices and supply and a report on rising listings in October show that sellers must compete on value and terms.

Mortgage rates are still a key affordability driver. National 30-year fixed averages hovered in the mid-6 percent range in October 2025, with some reports near 6.27 percent. That rate backdrop explains why incentives like buydowns are back in the mix for many buyers. See recent national rate context.

Buydown vs price drop explained

A temporary buydown is when a seller or other party pays funds at closing to reduce the buyer’s monthly payments for a set period, such as a 2-1 or 1-0 structure. After that period, the loan payment returns to the full note rate. Learn how temporary buydowns work.

A permanent buydown means paying discount points to lower the interest rate for the life of the loan. Some investors also allow financed permanent buydown options under specific rules. See Freddie Mac’s permanent buydown overview.

A price reduction simply lowers the sale price. That reduces the buyer’s loan amount and permanently lowers principal and interest. It is also fully visible to the market and affects comparable sales.

Key differences you should weigh:

• Visibility: Price cuts are public in the listing history. Buydowns keep list price intact but show up in closing documents and to the appraiser.
• Permanence: Price cuts lower payments for the full term. Temporary buydowns lower payments only during the subsidy period, unless points are used for a permanent rate drop.
• Underwriting: Buydowns count toward seller concession limits and usually require the buyer to qualify at the full note rate. Price cuts lower the loan-to-value and can simplify approval. See Fannie Mae guidance on concessions and a practical comparison of buydowns vs price drops.

When a buydown makes sense

• You want to protect list price and neighborhood comps while helping buyers with cash flow. A well-structured buydown can advertise a lower monthly payment without a public price cut. See context on using incentives in shifting markets.
• The buyer values near-term payment relief and expects to refinance if rates fall or income rises later. A temporary buydown eases the first years without changing equity.
• You are marketing new or updated listings where a payment-focused message can boost traffic. Builders and some lenders often use buydowns for this reason, and there are programs that support compliant marketing. Read about incentive marketing considerations.

When a price reduction is smarter

• The buyer wants permanent savings and lower total interest paid. A price cut reduces principal for the full term and avoids later payment increases. See a side-by-side explanation.
• The loan is tight on ratios or guidelines. Since many temporary buydowns still require qualifying at the note rate, a price cut that lowers principal may help more with approval. Review qualification rules context.
• You want simplicity. A price drop is straightforward. A buydown needs escrowed funds, disclosures, and close coordination with the lender and appraiser.

Run the numbers: quick local example

Consider a $500,000 Henderson home with 20 percent down. At a 6.5 percent note rate, estimated principal and interest is about $2,529 per month. If a buydown makes year-one payments feel like a 5.5 percent rate, estimated P&I is about $2,269 per month. That is roughly $260 per month in short-term relief. A seller might fund that relief via a temporary buydown for less than the larger price cut needed to reduce every future payment by $260. Exact numbers vary by rate, loan type, and structure, so always model both options. See a practical comparison framework.

Rules that matter to your deal

• Qualification at the note rate: Many investors require buyers to qualify at the full contractual rate, not the buydown payment. This means a temporary buydown rarely helps a marginal borrower qualify. See an investor notice on qualification.
• Seller concession limits: Seller-paid buydowns count toward Interested Party Contribution limits, which vary by occupancy and LTV. If concessions exceed caps, the underwriter may treat them as sales concessions and adjust the effective price. Review Fannie Mae’s IPC rules.
• Appraisal impacts: Appraisers adjust comparable sales when concessions materially affect value. Large incentives can trigger adjustments or scrutiny. See appraisal adjustment guidance.
• Tax note: Points paid, including seller-paid points that are treated as paid by the buyer, may be deductible as mortgage interest subject to IRS rules. Always confirm with a tax professional. Review IRS Publication 530.

Simple step-by-step to choose

• Clarify your goal. Is it preserving list price optics, or delivering permanent savings to the buyer?
• Get real numbers. Ask your lender to model a price cut vs a temporary or permanent buydown for the exact property, down payment, and program.
• Confirm program rules. Check concession caps and whether the buyer must qualify at the note rate. Start with Fannie Mae’s IPC overview.
• Plan documentation. If you choose a buydown, ensure funds are properly escrowed and disclosed to the lender and appraiser.
• Market it clearly. Only advertise specific payment or rate scenarios you can actually deliver and document. See incentive marketing context.

Your next move

If you are weighing a buydown versus a price drop in Henderson, let’s run the numbers together and align the strategy with current buyer demand. Our team pairs local market insight with fast, certain execution, and we offer a guarantee-backed selling program that keeps you in control. Connect with the bilingual pros at Lopez Real Estate Group to get a custom plan for your home or purchase.

FAQs

What is a seller-paid temporary buydown?

• It is an upfront credit that lowers your monthly payment for a set period, then the payment resets to the full note rate. See a clear explainer.

Do buydowns help you qualify for a mortgage in Henderson?

• Usually no. Most lenders require you to qualify at the full note rate, so a temporary buydown changes cash flow, not approval. Review an investor qualification notice.

Which saves more over time: buydown or price cut?

• A price cut reduces principal and lowers payments for the life of the loan, while a temporary buydown lowers payments only during the subsidy period. See a practical comparison.

How do seller concession limits affect buydowns?

• Seller-paid buydowns count toward Interested Party Contribution caps, which depend on loan type and LTV. Exceeding caps can trigger pricing or appraisal adjustments. Check Fannie Mae’s IPC rules.

Could a buydown affect your appraisal?

• Yes. Appraisers adjust comparable sales when concessions materially affect value, which can impact loan calculations. See appraisal adjustment guidance.

Are points tax-deductible if the seller pays them?

• Points may be deductible as mortgage interest if IRS criteria are met, and seller-paid points can be treated as paid by the buyer. Always consult a tax professional. Review IRS Publication 530.