Using Days on Market to Negotiate Seller‑Paid Points in Commerce

Is there a Commerce home you love that has been sitting for a while? Longer days on market can signal a motivated seller, which gives you a real chance to ask for seller‑paid mortgage points and lower your monthly payment. If you are shopping in Jackson County, understanding how to use DOM, lender limits, and solid offer language can put real money back in your pocket.

In this guide, you will learn how DOM creates leverage, the difference between temporary and permanent buydowns, what lenders and appraisers look for, and how to structure an offer that works in the Commerce market. Let’s dive in.

Why DOM gives you leverage in Commerce

When a listing stays on the market longer than similar homes, it often points to overpricing, softer demand, condition questions, or simple timing. Any of those can increase a seller’s willingness to consider a credit at closing. You can convert that leverage into a lower payment by asking the seller to fund points or a temporary buydown.

DOM is local and relative. A 60‑day DOM might be long in a hot segment and normal in a slower one. Compare each target property’s DOM to the average for similar homes in Commerce. Look at the same neighborhood and price band, and review the recent trend so you know whether DOM is rising or falling.

Compare DOM to local averages

Start with MLS data for the specific micro‑market. Focus on similar size, age, and price tiers. Review listing history for price drops and note how many days have passed since the most recent reduction. If a home has a longer DOM than nearby comps or shows multiple reductions, it is a green light to discuss a seller credit.

Signs a seller may fund points

• Longer DOM than the neighborhood average
• One or more recent price reductions
• Vacant or easy‑to‑show status that suggests carrying costs
• A quick close date advertised in remarks

Any of these can justify a respectful ask for seller‑paid points in exchange for strong terms on your side.

What seller‑paid points cover

Seller‑paid points are a seller credit directed to your mortgage costs at closing. You can use them to buy discount points for a permanent rate reduction or to fund a temporary buydown that lowers your payment for the first years.

Temporary buydown basics

• 2‑1 buydown: Year 1 is the note rate minus 2 percentage points. Year 2 is the note rate minus 1 point. Year 3 and beyond is the full note rate.
• 3‑2‑1 or custom options: Similar idea, just spread across more years.

The seller funds the upfront cost at closing. The money is held in a reserve by the lender or servicer and applied to reduce your payments during the buydown period.

Permanent points explained

Permanent buydowns use discount points to reduce your interest rate for the life of the loan. One discount point costs 1 percent of the loan amount. The rate reduction per point varies by market and lender. Ask your lender for a quote that shows the cost and the expected rate change at different point levels.

Lender limits and appraisals

Seller credits are subject to investor and program limits. These caps are important because they determine how much a seller can legally pay toward your costs, including points.

• Conventional loans: Allowed seller concessions typically scale with your down payment and loan‑to‑value tier. Lower down payment often means a smaller cap, while larger down payment can allow a larger cap. Exact percentages and thresholds depend on the investor and the lender’s overlays. Confirm with your lender before you write the offer.
• FHA loans: Sellers can generally contribute up to 6 percent of the sale price toward buyer closing costs, prepaids, and permanent buydowns.
• VA loans: Seller concessions are allowed, but VA has specific rules about which fees a seller can pay. Many lenders apply an often‑cited 4 percent guideline to certain concession categories. Work closely with your VA lender to structure it correctly.

Most lenders treat seller‑paid points or buydown funds as concessions, which means they count against these caps. Your lender will also require written documentation that the credit will be used for discount points or to fund the buydown, and that the funds will be handled through escrow per lender instructions.

How lenders document credits

Expect to see a clear seller credit clause in your contract, a separate buydown agreement for temporary buydowns, and escrow instructions. Your Closing Disclosure should show the seller credit and how funds are applied. Lenders also want written confirmation that the credit does not violate investor limits.

Appraisal effects in Commerce

Appraisers focus on market value based on comparable sales. Typical, customary seller credits do not change the appraised value. If concessions are unusually large for the market, the lender or appraiser may require changes. That can include lowering the credit, adjusting the price, or asking the buyer to bring funds. If a requested credit exceeds program caps, the lender may require a price reduction instead of the credit.

Estimate the cost with your lender

Ask your lender to provide two numbers in writing before you write the offer. First, the lump sum needed to fund a temporary buydown like a 2‑1. Second, the cost per discount point and how much each point would reduce your rate. This helps you pick the structure that creates the best monthly savings within program limits.

• Discount points cost: loan amount times the points percentage. For example, 1 point on a 300,000 dollar loan equals 3,000 dollars.
• Temporary buydown cost: the funded amount equals the total payment reduction over the buydown period. Lenders will quote this as a single dollar figure.

You can also compare outcomes. If the seller cannot give a full credit due to program limits, consider a smaller credit for a partial buydown and a modest price reduction, or switch to a price reduction and pay points yourself.

Structure your offer in Jackson County

Clear contract language is essential. Use your local Georgia forms and addenda, and coordinate with your lender so the wording aligns with underwriting and escrow.

Option 1: Seller credit for buydown

Intent language to adapt:

• “Seller agrees to provide a closing credit in the amount of $_____ to be applied exclusively to prepaid mortgage discount points or funding of a [2‑1] temporary buydown. The credit shall be reflected on the Closing Disclosure and disbursed per lender instructions.”
• Add a lender approval condition: “Buyer’s lender must confirm in writing that the credit is acceptable and will not violate investor or underwriting requirements.”

Option 2: Price reduction fallback

If concession caps are tight, use a price reduction that creates the same net benefit:

• “Seller agrees to reduce the purchase price by $_____ (or to $_____). Buyer may independently apply funds to discount points in accordance with lender guidance.”
• Include appraisal language if needed to protect your financing if the appraisal comes in low.

Option 3: Hybrid strategy

Split the difference. Request a smaller seller credit that fits within program caps and cover the remainder yourself. This can keep the deal within lender limits while preserving some monthly savings.

Timing, pre‑approval, and scripts

Before you write, confirm three things. Your loan type and the seller concession limit, the exact dollar amount for your target buydown or points, and the property’s DOM compared to local comps. This lets you present a clean, credible offer the seller can accept without guesswork.

Pre‑offer checklist

• Confirm loan program and concession caps with your lender, including any overlays.
• Get a written quote for the buydown or points, and ask how those funds must be documented.
• Pull listing history for DOM and price reductions, plus a micro‑market DOM snapshot.
• Choose your structure: seller credit, price reduction, or hybrid.
• Draft contract language for the credit, lender approval contingency, and escrow instructions. Add an appraisal contingency if appropriate.

Negotiation scripts you can use

• Initial request based on DOM: “We have been tracking comparable homes in Commerce and this property’s days on market is longer than the neighborhood average. We are prepared to move forward at $_____ if the seller will credit $_____ at closing to fund a temporary 2‑1 buydown per lender instructions. Our lender has reviewed and supports this structure, subject to written confirmation.”
• If the seller resists a credit: “If a buydown credit is not feasible, would the seller consider a price reduction of $_____ for an equivalent net effect, or a split structure with a $_____ credit and a $_____ reduction? We can offer a shorter closing timeline and limit nonessential contingencies.”
• In a counter offer: “Buyer accepts the counter at $_____ provided the seller gives a guaranteed closing credit of $_____ and signs the buydown agreement to be held in escrow per lender instructions.”

Common pitfalls to avoid

• Assuming the lender will allow any credit amount. Concession caps vary by program and lender. Always verify before you write.
• Skipping the buydown agreement or escrow instructions for temporary buydowns. Lenders require clear documentation.
• Asking for a credit that exceeds program caps. Consider a price reduction or hybrid approach when needed.
• Forgetting the appraisal. Large concessions can trigger extra review. Protect yourself with clear contingencies and a plan to adjust if required.

Quick buyer checklist

1. Pre‑approval: Tell your lender you plan to request seller‑paid points or a temporary buydown and ask for program limits and the qualification rate they will use.
2. Price and DOM analysis: Compare the property’s DOM to similar Commerce homes using MLS data. Note any price reductions and days since the last change.
3. Lender quote: Get a written cost for the desired buydown or points and confirm whether it counts against concession caps.
4. Offer drafting: Include a precise seller credit clause, lender approval contingency, and escrow instructions. Add appraisal language if needed.
5. Negotiate: Use DOM to highlight seller carrying costs and your strong terms. Consider tradeoffs like a faster close.
6. Escrow and documentation: Ensure the buydown agreement is included and that funds flow per lender or servicer requirements.
7. Closing: Confirm the Closing Disclosure shows the seller credit and that the buydown funds have been deposited correctly.

Ready to talk strategy for Commerce?

If you have your eye on a Commerce home with extra days on market, you may be closer to a lower payment than you think. Let’s map out a DOM‑driven plan that fits your financing and the seller’s goals, then write an offer the lender and appraiser can support. Connect with Home Run Properties to schedule a free consultation.

FAQs

How seller‑paid points affect appraised value in Commerce

• Normal, market‑typical seller credits usually do not change appraised value. Large or unusual concessions can trigger lender or appraiser review and may require adjustments.

Lender qualification rules when using a temporary buydown

• Many lenders require you to qualify at the note rate or a specific investor rate, even if your first‑year payment is lower with a buydown. Get written confirmation from your lender before you write the offer.

Allowed seller concessions by loan type in Georgia

• Conventional caps often scale with your down payment tier. FHA commonly allows up to 6 percent toward closing costs and permanent buydowns. VA permits concessions, with specific rules and an often‑cited 4 percent guideline for certain items. Always confirm with your lender.

Choosing between a seller credit and a price reduction

• If concession caps are tight or the seller prefers, a price reduction can produce a similar net effect. Your lender can compare the monthly savings and cash‑to‑close under each option.

Verifying the exact cost of a 2‑1 buydown

• Ask your lender for a written quote that shows the lump sum needed to fund the buydown and whether it counts against concessions. Use that figure when setting your credit request in the offer.