Price Cut vs. Seller Concessions in Chandler: Which Nets More?

Should you cut your price or offer seller concessions when selling in Chandler?

Dollar for dollar, a price cut and a seller concession land your net proceeds in almost the same place. A price cut actually nets you slightly more, because commission and your title premium shrink with the lower price. The real difference is what each one does for the buyer: a price cut fixes a list price that’s keeping buyers out of their search range, while a concession, especially one that funds a rate buydown, lowers the buyer’s monthly payment far more per dollar. If your Chandler home is getting showings but no offers, a concession usually wins. If it’s getting no showings at all, cut the price.

By Dr. Kevin Shufford | September 25, 2026

Your Chandler home has been on the market a few weeks. The feedback is fine. The offers aren’t coming. And now you’re staring at two options: drop the price, or offer the buyer money toward their closing costs.

Most sellers treat these as the same move with different labels. They’re not. They cost you roughly the same, but they solve two very different problems.

This is one of the most common conversations I have with Chandler sellers once a listing passes the 30-day mark. Because I work both sides of the deal as an agent and a mortgage loan officer, I get to see exactly how each option lands on the buyer’s loan, and that’s where this decision gets made.

Price cut vs. seller concession: the side-by-side

Let’s use an illustrative Chandler example: a home listed at $575,000, a buyer putting 5% down on a conventional loan, and $15,000 on the table either way.

My recommendation: if your home is priced in line with recent Chandler sales and buyers are touring but not writing, offer a concession and market it as a rate buydown. If showings have dried up, the problem is the price, and no concession will fix it because buyers never see it. Cut the price and consider landing just under a round-number search bracket.

Why a buydown moves more buyers per dollar

Buyers don’t shop by price. They shop by payment. A $15,000 price cut on a 30-year loan barely moves the monthly number, usually less than $100.

That same $15,000 aimed at a temporary 2-1 buydown works differently. On a loan in the mid-$500,000s, a 2-1 buydown typically costs somewhere around $12,000 to $13,000 and drops the buyer’s rate 2% below the note rate in year one and 1% below in year two. That’s a payment reduction of several hundred dollars a month right when the buyer is paying for movers, window coverings, and a summer electric bill. Whatever’s left of the credit can go to their closing costs.

A permanent buydown (paying discount points) is the other option. It lowers the rate for the life of the loan, but each dollar buys a smaller monthly reduction up front. I compare those two approaches in more depth in mortgage points vs. a bigger down payment.

Before you decide, run both scenarios in the Seller Net Proceeds Calculator. Plug in the lower price once, then the full price with a credit, and look at the two bottom lines side by side. You’ll see the gap is small, which is exactly why the buyer-side impact should drive the decision. For the full cost breakdown behind that number, here’s what Chandler sellers typically net.

The rules that limit seller concessions

Concessions aren’t unlimited. The cap comes from the buyer’s loan program, not from Arizona law or the AAR purchase contract.

• Conventional, primary residence: 3% of the price with less than 10% down, 6% with 10% to 25% down, and 9% with more than 25% down.
• Conventional, investment property: 2%.
• FHA: 6%.
• VA: 4% in concessions, with the buyer’s normal closing costs allowed on top of that.

In our example, a 5%-down conventional buyer on a $575,000 purchase can accept up to $17,250 in concessions, so $15,000 fits. Three more rules to know:

1. Concessions can’t exceed the buyer’s actual costs. The credit covers closing costs, prepaid taxes and insurance, and buydowns. It can’t go toward the down payment, and any unused amount doesn’t turn into cash for the buyer.
2. The appraisal still has to hold. Offering a large credit on top of an aggressive price just moves the fight to the appraiser. If the value comes in short, you’re renegotiating anyway.
3. Repair credits count too. A credit you agree to after the buyer’s inspection is a seller concession in the lender’s eyes and counts toward the same cap. If an inspection request is coming, knowing how to read the inspection report helps you decide between fixing an item and crediting it.

One compliance point worth repeating: the buyer chooses their own lender, title company, and escrow company. A concession never obligates the buyer to use any particular settlement service provider, including one connected to the seller or the listing agent.

And a cost you won’t see on a Chandler settlement statement: transfer tax. Arizona has no state or local real estate transfer tax, so every dollar of your concession budget goes toward the buyer’s actual costs.

Timing matters too. A concession offered up front in the listing (“seller will contribute up to $15,000 toward a rate buydown”) attracts buyers who are shopping by payment. A price cut after weeks on market tells buyers you’re negotiable, and some will come in lower still. If you’re weighing whether to adjust now or hold, this guide to lowering your price or waiting walks through the same decision logic that applies in Chandler.

Frequently Asked Questions

Does a seller concession lower my net proceeds as much as a price cut?

Almost exactly. A $15,000 concession reduces your net by $15,000. A $15,000 price cut reduces it slightly less, because commission and the owner’s title policy premium are calculated on the lower sale price. The difference is usually a few hundred dollars.

How much can I offer in seller concessions in Arizona?

Arizona doesn’t set the limit. The buyer’s loan program does. Conventional loans allow 3% to 9% on a primary residence depending on the down payment, FHA allows 6%, and VA allows 4% plus normal closing costs. Cash buyers have no lender cap.

Can a buyer use seller concessions for their down payment?

No. Concessions can pay closing costs, prepaid items, and rate buydowns, but not the down payment. If the credit is larger than the buyer’s eligible costs, the extra is lost or the deal has to be restructured as a price reduction.

Is a repair credit after the inspection considered a concession?

Yes. Lenders treat a seller-paid credit for repairs as an interested party contribution, so it counts toward the same cap as any other concession. If you’ve already offered a large credit up front, leave room for a possible inspection request.

Should I advertise a concession in my Chandler listing?

Usually, yes. Framing it as a rate buydown lets buyers and their lenders see the payment benefit before they tour. Just keep the dollar amount within what typical buyer loan programs allow.

Pick the tool that fixes your actual problem

A price cut and a concession cost you nearly the same. The right choice depends on why your home isn’t selling: no showings means price, showings without offers usually means payment.

Because I’m licensed as both a real estate agent and a mortgage loan officer, I can model your net sheet and the buyer’s payment on the same call, so you see exactly what $15,000 does on each side before you commit a dollar.

If your Chandler listing has stalled, request a seller net sheet comparing a price cut and a buydown concession side by side. Reach out at thepropertyprofessor.blog or call 480-725-4658.

About Dr. Kevin Shufford
Dr. Kevin Shufford holds a PhD in Communication and is a professor who teaches how to have healthy relationships, skills he brings directly to his real estate practice. As a licensed real estate agent and mortgage loan officer serving the Phoenix metro and Southern California markets, Kevin operates as The Property Professor under Real Broker LLC and One Real Mortgage. He helps buyers and sellers navigate the transaction and lending process with confidence. Buyers are always free to choose their own settlement service providers. Connect with Kevin at thepropertyprofessor.blog or call 480-725-4658.