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Case Study: Buydown Beats a Price Cut

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Published on October 2, 2026 • Read Time: 3 min read

Case Study: Buydown Beats a Price Cut

By Lock It Lending Team — see the general guide to buydowns vs. price cuts.

About this example. This is one real listing, priced with the rate available on September 17, 2026. Rates change daily, and this specific listing may have since sold, changed price, or gone under contract — check with the listing agent for its current status. This is not a rate quote for any other property or buyer, and not a commitment to lend.

The Listing

22906 Miramar St, Galveston, TX 77554 — 3 bed, 2 bath, 1,475 sq ft, built 2023, listed at $525,000 (MLS 64707782). Listed by Thao Nguyen, Win Nguyen Real Estate Group, TREC #697470, brokered by eXp Realty LLC.

Flyer comparing a $20,000 price cut to a $9,733 seller-paid 2-1 buydown on 22906 Miramar St, Galveston, TX, showing payments of $2,223/mo in year 1 and $2,484/mo in year 2 under the buydown versus $2,654/mo under the price cut, both against a $2,759/mo payment at full price

The Math

A $20,000 price cut lowered this buyer's payment to $2,654 a month, about $105 less than full price. A seller-paid 2-1 buydown on the same home cost the seller $9,733, less than half as much, and lowered the buyer's payment to $2,223 a month in year 1 and $2,484 a month in year 2 — a $431-a-month drop in year 1, $170 a month in year 2. From year 3 on, the buydown loan returns to the same rate and payment as a standard loan, so nothing resets or jumps later because of it.

Same seller, same budget, but the buydown moved the buyer's payment about four times further than the price cut did, for about half the cost.

Want This for Your Listing?

Send a listing address to Hanh at hanh@lockitlending.com or call (866) 400-6789, and we will price a seller-paid 2-1 buydown for that home and send back a flyer with your name and logo on it. Read the general guide to buydowns vs. price cuts for how this works on any listing.