What is a seller buy down?

If the seller is resisting your offer and is determined not to reduce the price on their home, consider suggesting a seller buy down. Instead of lowering the asking price the seller can offer a seller credit to the buyer. The buyer can use this to buy down the current interest rate which can provide more monthly savings for the buyer. Also, points are tax deductible in the year the property is purchased. Click the below link for a more visual example of how the seller buy down method can be beneficial to your savings and negotiations.