Homes in Southern California aren’t sitting because buyers stopped wanting them. They’re sitting because the monthly payment doesn’t work. When a listing goes quiet, most sellers reach for a price cut. In this week’s Monday Minute, Manny Solana shows why a seller paid buydown does far more with the same money.

What a $25,000 price cut actually does

Take a $1,250,000 home with 20% down at a 7.50% rate. The principal and interest payment is about $6,992 a month. Cut the price $25,000 and the payment falls to about $6,852. That’s roughly $140 a month. The buyer barely notices, and the lower sale price becomes a comp every neighbor’s home gets measured against.

What a seller paid buydown does with the same money

A seller paid buydown uses seller credits to lower the buyer’s interest rate for the first years of the loan.

	Year 1	Year 2	Year 3	Year 4 to 30	Year 1 savings
No buydown	7.50% / $6,992	7.50% / $6,992	7.50% / $6,992	7.50% / $6,992	$0
2-1 buydown	5.50% / $5,678	6.50% / $6,321	7.50% / $6,992	7.50% / $6,992	$1,314
3-2-1 buydown	4.50% / $5,067	5.50% / $5,678	6.50% / $6,321	7.50% / $6,992	$1,925

The 2-1 costs roughly 2% of the price. The 3-2-1 costs roughly 4%. Any credit the buydown doesn’t use can go toward the buyer’s closing costs, within loan program limits.

Why the price matters more than sellers think

A price cut is permanent. It shows up in the sold data, in the next appraisal on the street, and in the seller’s net. A buydown credit protects the list price while giving buyers a number they can say yes to. Buyers shop by payment first, so a lower payment brings more of them through the door.

How Lower Payment Financing works

Lower Payment Financing is California Home Solution’s program for listing agents and sellers. The seller, the listing agent, and CHS combine credits to buy down the buyer’s rate, and the listing gets marketed on the payment instead of the price. We build the payment comparison, a co-branded property page, a sign rider with a QR code, a flyer, and a social kit. Then we handle the financing from application to closing. The CHS credit applies only when the buyer finances with California Home Solution.

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Frequently asked questions

Does the seller have to pay the full amount up front?

No. The credit is written into the purchase agreement and paid at closing.

What happens after year two or three?

The rate returns to the note rate for the rest of the loan. If rates drop, the buyer can look at refinancing; unused buydown funds are generally applied as the lender’s guidelines allow.

Can the buyer use any lender?

The seller’s credit can be used with any lender. The CHS credit and our marketing package apply when the buyer finances with CHS.

Run the numbers on your listing

Agents and sellers: send us an address and Manny will run the payment comparison. Call 818-999-6070 ext. 301 or visit cahomesolution.com/real-estate/win-more-listings/.

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Example for illustration only. Based on a $1,250,000 purchase price, 20% down payment ($250,000), $1,000,000 loan amount, 30 year fixed rate conventional loan, primary residence, single family home, [credit score] credit score. Note rate 7.50%, APR [APR]. 2-1 temporary buydown: 5.50% in year 1 ($5,678/mo), 6.50% in year 2 ($6,321/mo), 7.50% in years 3 to 30 ($6,992/mo). 3-2-1 temporary buydown: 4.50% in year 1 ($5,067/mo), 5.50% in year 2 ($5,678/mo), 6.50% in year 3 ($6,321/mo), 7.50% in years 4 to 30 ($6,992/mo). Payments are principal and interest only and do not include taxes, insurance, or HOA dues; actual payment will be higher. Buydown funds come from seller and other credits negotiated in the purchase agreement. Rates and terms as of 10/13/2026 and subject to change. Subject to borrower and property qualification. Not a commitment to lend.

California Home Solution, Inc.

DRE #01303675, NMLS #260091.

Manny Solana, NMLS #291475.

Equal Housing Opportunity.