Price Reduction Comparison Calculator

I taught a Leveraging Seller Concessions Lunch N Earn class yesterday. One of the strategies is to show a client and/or agent the power of applying concessions towards the finance charges of the home, rather than lowering the price of the house, to maintain stability of prices and protect commissions.

Though we are in a shifting market, expectations still need to be set for sellers and buyers. The issue is affordability and trying to create solutions. My experience is that most buyers and agents don’t understand the power of applying a lower rate compared to a price drop.

One of the agents mentioned that they haven't had to deal with seller concession applications for rate buydowns and asked if there was a universal formula based on the slide I’m sharing below. Now, if you have Mortgage Coach, you can draw up presentations, but it's manual work, and it requires you to dedicate time to create presentations. I prefer this method, but I also wanted to make a quick reference guide that I could send to agents as a value-added benefit.

I uploaded the image below and asked Chat GPT Agent mode to create an Excel file for me that I could plug in arbitrary numbers. I have attached below what it populated. I believe this could be a tremendous value add to partners and also can help speed up presentations to educate buyers and agents on our end.