When mortgage rates jump, should I cut my price or buy down the rate?
Usually the rate. On a $500k spec home at 7.32%, a $25k rate buydown cuts the buyer's payment $410 to $530 a month. A $25k price cut saves about $140.
Builder Division · Spec Construction Financing
Spec Construction Chronicle
Research and commentary on the new construction and spec financing markets.
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Pricing & Comps
Does a price cut on one spec home lower the value of the others?
It can. When a cut spec home closes, that sale becomes a comparable, and the next appraisal nearby can read it. Here is the arithmetic to run before you cut.