the dunnican team | coldwell banker apex realtors®
Price cut, closing credit, or rate buydown?
See what each one actually does for a Dallas-Fort Worth buyer before you give up $10,000.
Should a Dallas-Fort Worth seller cut the price or offer a concession?
It depends on what's stopping the buyer. The calculator below shows what the same dollars do in each case, but the pattern holds across price points:
- A price cut lowers the buyer's payment by roughly $6 to $7 a month for every $1,000 cut, and lowers their cash to close by about 8 cents on the dollar. The buyer barely feels it.
- A closing cost credit lowers the buyer's cash to close dollar for dollar, up to the lender's limit. The payment doesn't change.
- A rate buydown uses the same money to lower the buyer's monthly payment, permanently or for the first year or two. Cash to close doesn't change.
Most sellers reach for the price cut first. In the current Dallas-Fort Worth market, it's usually the least efficient of the three.
Every buyer who walks through your home is running two numbers in their head: what the monthly payment would be, and how much cash they'd need at closing. This tool shows what a price cut, a closing cost credit, and a rate buydown each do to those two numbers, so you can put your incentive where the buyer actually feels it.
Enter your price, the current rate, and how much you're willing to put on the table. Then pick a down payment that matches the buyer you're most likely to get. In most Dallas-Fort Worth price ranges under $500,000, that's 3.5% to 10%.
How to read the results
Monthly payment is principal and interest only. It leaves out property taxes, insurance, mortgage insurance, and HOA dues, which in Dallas-Fort Worth can add $700 to $1,200 a month on a $400,000 home depending on the city and tax rate. The buyer's lender will quote the full number. What matters here is the difference between the options, and that difference is driven almost entirely by principal and interest.
Cash needed at closing is the down payment plus closing costs, which the tool estimates at 3% of the price. In Texas, that covers the title policy, lender fees, prepaid taxes and insurance, and the first year of homeowner's insurance. It doesn't include the option fee or earnest money, both of which the buyer pays up front and gets credited back at closing.
For the full breakdown of what a seller can and cannot pay, see Seller concessions in Texas.
The loan limit warning appears when your incentive is above what the buyer's lender will allow. On a conventional loan, the seller can typically contribute up to 3% of the price if the buyer puts down less than 10%, 6% with 10% to 25% down, and 9% above 25%. FHA allows 6%. The credit can cover closing costs and prepaids, but it can't go toward the down payment. Anything above the actual closing costs is money the buyer can't use, which is why the tool flags it.
Want the full payment? Our DFW mortgage calculator adds taxes and insurance. This tool stays on principal and interest on purpose, because that is where the three options differ.
The rate buydown estimate uses a common rule of thumb: about a quarter-point of rate for every 1% of the loan amount paid in points. Real pricing moves daily and varies by lender, loan type, and credit profile. Get a quote from the buyer's lender, or from ours, before you promise a number in your listing.
Why this matters more in Dallas-Fort Worth right now
The Dallas metro has one of the widest seller-to-buyer gaps in the country, and it has for most of 2026. When sellers outnumber buyers by that much, the buyer who does show up has options. They're comparing your home against resale listings that have already cut their price, and against new construction in Rockwall, Fate, Royse City, Forney, and Frisco, where builders lead with a rate buydown on the flyer before anyone has to ask.
That's the real competition for your home: not the price next door, but the monthly payment the builder down the road is advertising. We covered how those builder deals are structured in Builder rate buydowns in DFW and DFW's new construction builder incentives explained. A seller who shows up with a closing credit or a buydown in the listing remarks is competing on the same terms. A seller who cuts the price $10,000 and says nothing else is hoping the buyer does the math themselves. Most don't.
The current numbers for the metro and for each city we serve, including months of supply, days on market, and the share of listings with price cuts, are on our Dallas-Fort Worth market update, refreshed monthly.
Putting the incentive in your listing
Decide the amount before you list
Work backward from the loan limit for the buyer you expect. On a $400,000 home with a 5% down buyer, that's $12,000. Decide what you'd give up in a negotiation anyway, and offer it up front instead. The sellers who pay twice are the ones who cut the price to get the showing, then concede again after the inspection.
Let the buyer choose how to use it
You can't know whether the next buyer is short on cash, nervous about the payment, or focused on price. Offering a set amount "toward closing costs, a rate buydown, or price, buyer's choice" lets each one apply it where it helps. Your agent writes it into the MLS remarks and the showing follow-ups so buyers' agents know before they write.
Get the buydown quote in writing
If you're going to advertise a rate, have a lender price it first. We work with local lenders who run these scenarios for our sellers. A number on the flyer that the lender can't deliver costs you the buyer and the credibility.
Want to know which option fits your home?
Fifteen minutes is usually enough. We'll look at your price range, the buyers active in your area, and what each option would cost you, then tell you honestly whether an incentive is the right move or whether the price itself is the problem.
Frequently asked questions
Does a seller concession lower my net the same as a price cut?
Dollar for dollar, yes. A $10,000 credit and a $10,000 price cut cost you about the same at the closing table. The difference is what the buyer gets for it. The credit cuts their cash to close by $10,000. The price cut cuts it by about $800 and lowers their payment by about $65 a month. One of those gets a buyer across the line. The other mostly doesn't.
Can the buyer use a seller credit toward the down payment?
No. On conventional, FHA, and VA loans, seller contributions can pay closing costs and prepaids but not the down payment. If your credit is larger than the buyer's actual closing costs, the excess is lost unless it's restructured as a rate buydown or a price reduction. The calculator flags this when it happens.
How does a seller-paid rate buydown work in Texas?
The seller's credit pays discount points to the buyer's lender at closing, which lowers the rate. A permanent buydown lowers it for the life of the loan. A temporary buydown, such as a 2-1, lowers the payment for the first two years and then resets to the note rate. Either way, it counts as a seller concession and is subject to the same loan limits. The buyer's lender has to approve the structure, so get the quote before you advertise it.
Will offering an incentive make my home look desperate?
Not if it's framed the way builders frame it: as a feature of the listing, not an apology for it. "Seller offering $10,000 toward closing costs or rate buydown" reads as a seller who understands the market. A listing that's been cut three times reads as the opposite. The incentive is what you'd likely concede in negotiation anyway. Offering it up front just gets you the showing first.
Does this calculator work for buyers too?
Yes. If you're buying in Dallas-Fort Worth and a seller is offering a credit, enter the price and your down payment to see whether the money is worth more to you at closing or in the payment. If you're looking at new construction, it's a quick way to check what a builder's advertised rate is actually worth compared with a price reduction on a resale home.
About the authorCindy Dunnican is the Founder and Managing Partner of The Dunnican Team at Coldwell Banker Apex, REALTORS®, serving Rockwall County, Northeast Dallas, and the surrounding North Texas communities. Licensed since 1998, she has helped close more than 1,850 transactions totaling over $350 million in career sales volume, and has been named a D Magazine Best Real Estate Agent every year since 2010. Call or text (972) 679-1789 or book a consultation.
This calculator is for illustration only and is not a loan offer, rate quote, or guarantee of any outcome. Payment estimates assume a 30-year fixed loan at the rate entered and include principal and interest only. Taxes, insurance, mortgage insurance, and HOA dues are not included. Closing costs are estimated at 3% of the purchase price and vary by lender, title company, and property. Seller contributions are subject to loan program limits and cannot be used toward the down payment. Rate buydown estimates use a general rule of thumb; actual pricing is set by the buyer's lender. Talk to a licensed lender about your options. Equal Housing Opportunity.