If your home needs more interest, a price cut usually isn't the most effective fix. Buyers decide based on two numbers, the monthly payment and the cash they need at closing, and a price cut barely moves either one. The same money, used the right way, can.
Every buyer who walks through your home is running those two numbers in their head. What would the monthly payment be? And how much cash would I need at closing?
That's true in a fast market and a slow one. Right now, a lot of buyers are feeling squeezed on both. Nationally, there are 63% more sellers than buyers, the widest gap Redfin has recorded since 2013. Put simply, for every 100 buyers there are about 163 sellers competing for them.
So how do you stand out without giving away equity? Here's how I walk my sellers through it.
Key Takeaways
- A price cut barely helps buyers. On a $450,000 home with 5% down, a $10,000 cut saves about $63 a month and $800 at closing.
- A closing-cost credit does more with the same money. That same $10,000 cuts the buyer's cash to close by the full $10,000.
- Many sellers pay twice. In August, 15.8% of sales included both a price cut and a seller concession.
- Lead with the incentive, like builders do. Offered up front, it attracts buyers. Offered after the inspection, it just saves the deal.
- Inspection and staging matter too. About 1 in 7 contracts fell through in July, and photos are a buyer's first showing.
Why isn't a price cut enough?
When a home needs more interest, most sellers reach for the same tool. They lower the price. The trouble is, a price cut barely changes either of the two numbers buyers care about.
Here's the part that surprises most sellers: nearly half of them already give buyers money. Most just offer it too late.
According to Redfin, 44.7% of home sales in August included a seller concession, usually $10,000 to $20,000 toward the buyer's costs. But most sellers wait until a buyer asks for help, usually after the inspection. By then, the money isn't attracting anyone. It's simply what it takes to save the deal.
Some do worse. In August, 15.8% of sales included both a price cut and a concession. Those sellers lowered their price to attract a buyer, then paid again to close. They paid twice.
Builders work the other way around. They show buyers the incentive from day one, before anyone has to ask. You can do the same. Here are five creative ways to attract buyers without cutting your price.
1. Cover closing costs
Cash is what stops most buyers. The typical household has about $8,000 in the bank, according to the Federal Reserve. First-time buyers put 10% down, according to NAR. Add closing costs, and the home slips out of reach, even when the monthly payment works.
The fix: Offer a $10,000 credit toward the buyer's closing costs. They bring $10,000 less to the table.
Price cut vs. closing credit: same money, very different results
On a $450,000 home with 5% down:
$10,000 used as… | Monthly payment (P&I) | Cash needed at closing |
|---|---|---|
A price cut | About $63 less | About $800 less |
A closing-cost credit | No change | $10,000 less |
Example only. 30-year fixed at 6.95% (Freddie Mac, Sept. 17, 2026). Principal and interest only. Closing costs estimated at 3% of price. The price cut's closing savings come from a slightly smaller down payment and closing costs.
For a buyer who's short on cash, that difference decides whether they can write an offer at all.
Your next step: Ask me what closing costs usually run on a home like yours. In Sacramento County they vary with price, loan type and transfer taxes, so it's worth knowing the real number before you offer one.
2. Buy down the buyer's rate
Builders lead with a lower monthly payment, and your buyers have noticed. In August, builders advertised rates averaging 3.92%, according to Realtor.com. The typical 30-year rate was about 6.95%, according to Freddie Mac. That's roughly 3 points lower.
If you're selling anywhere near new construction, and in our region that includes Folsom Ranch, El Dorado Hills, Natomas and much of Roseville, your buyer has probably seen one of those flyers.
The fix: Use part of your incentive to buy down the buyer's rate, either for a year or two or for the life of the loan.
Keep in mind: You won't match a builder's rate. They sell in volume, and many own the lender. But you don't have to match it. You just need your home's payment to feel competitive next to theirs.
Your next step: Ask a lender what $10,000 would do to a buyer's rate on a home like yours. Get the quote before you promise a number. I'm happy to connect you with lenders I trust.
3. Share the inspection up front
About 1 in 7 home purchase contracts fell through in July, according to Redfin, and inspections are one of the top reasons.
Most sellers wait for the buyer's inspector to find the problems. That's when surprises turn into repair requests, renegotiations or a buyer who walks.
The fix: Inspect before you list. Then fix what it finds, price for it, or share the report with buyers up front. A buyer who already knows the condition of the roof and the HVAC writes a more confident offer. In a faster market, a clean report can also help you choose between offers.
Keep in mind: In California, anything a pre-listing inspection finds may need to be disclosed. That's not a reason to skip it, but it is a reason to talk with me first so we plan for what comes back. For more on what disclosures look like once you're in escrow, see what California sellers must do after accepting an offer.
Your next step: Get an inspection quote before you list.
4. Stage what matters
Your first showing happens online. Buyers see your photos before they ever see your home, and agents rank photos as the most important part of a listing.
The fix: You don't need to stage your whole home. Put your effort into the rooms buyers' agents say matter most. According to NAR's 2025 Profile of Home Staging, 83% of buyers' agents say staging helps buyers picture a home as their own. Here's where they say it counts:
Room | Share of buyers' agents who rank it most important to stage |
|---|---|
Living room | 37% |
Primary bedroom | 34% |
Kitchen | 23% |
Your next step: Walk through those three rooms as if you were seeing them for the first time. Clear the surfaces, fix the small things, and book a professional photographer. If you're selling with me, the Compass Concierge program can also front the cost of staging and other prep, with nothing due until closing.
5. Let buyers choose how to use it
You can't know which buyer will show up. One is short on cash. Another is nervous about the payment. A third only cares about price.
The fix: Offer a set amount, say "$10,000 toward your purchase," and let each buyer choose how to use it. The same dollars can do three different jobs.
Here's what that looks like on a $450,000 home with 5% down. With no incentive, the buyer needs about $36,000 cash to close and pays about $2,830 a month.
Buyer uses the $10,000 for… | Cash to close | Monthly payment (P&I) |
|---|---|---|
No incentive (starting point) | $36,000 | $2,830 |
Closing costs | $26,000 | $2,830 |
A lower price ($440,000) | $35,200 | $2,767 |
A rate buydown | $36,000 | Lower; depends on lender pricing |
Example only. 5% down, 30-year fixed at 6.95% (Freddie Mac, Sept. 17, 2026), principal and interest only, closing costs estimated at 3% of price. One use at a time.
Keep in mind: The same dollars lower either the cash at closing or the monthly payment, not both. Every loan type also caps how much a seller can contribute, so we'll confirm the limits with the buyer's lender.
The bottom line
Before you cut your price, find out what's actually stopping buyers. Sometimes it's cash. Sometimes it's the payment, the inspection or the photos. The sellers who do best aren't the ones who give up the most. They're the ones who put the right incentive in front of buyers early, before anyone has to ask.
Want a selling strategy for your home? Let's talk for 15 minutes. I'll walk you through which of these ideas fit your home, what each one would cost, and when to use them. Schedule a conversation here, or request your home valuation here.
Think it's too early? That's usually the best time to start the conversation.
Frequently Asked Questions
Is it better to cut the price or offer a seller credit?
For most buyers, a credit does more. On a $450,000 home with 5% down, a $10,000 price cut saves about $63 a month and $800 at closing, while a $10,000 closing-cost credit cuts their cash to close by $10,000.
How much do sellers typically offer in concessions?
Redfin found 44.7% of sales in August included a seller concession, usually $10,000 to $20,000 toward the buyer's costs. What's typical depends on your price point and neighborhood.
Can a seller pay to lower the buyer's mortgage rate?
Yes. A seller-paid rate buydown lowers the buyer's rate, either for the first year or two or for the life of the loan. It counts toward the loan's limit on seller contributions.
Should I get a pre-listing inspection in California?
Often, yes. It helps you fix or price for issues before buyers find them. Anything it finds may need to be disclosed, so talk with your agent before you schedule one.
Which rooms should I stage?
Focus on the living room, primary bedroom and kitchen. Buyers' agents rank them as the most important rooms to stage, according to NAR.
Sources
- Redfin, buyers vs. sellers, September 2026
- Redfin, seller concessions and price cuts, August 2026
- Redfin, home purchase cancellations, July 2026
- Federal Reserve, household savings data
- National Association of Realtors, first-time buyer down payments
- Realtor.com, builder-advertised mortgage rates, August 2026
- Freddie Mac, Primary Mortgage Market Survey, September 17, 2026
- National Association of Realtors, 2025 Profile of Home Staging
