Las Vegas home sellers turn to mortgage buydowns to attract buyers

With 30-year mortgage rates hovering above 7 percent since September, Las Vegas Valley home sellers are increasingly being asked to help buyers lower monthly payments through mortgage rate buydowns rather than reducing asking prices, according to local real estate agents.

Longtime agent Steve Hawks said about 80 to 90 percent of his financed deals now include requests for sellers to buy down the buyer's interest rate, particularly in the $300,000 to $700,000 price range. "Every offer that I've seen (lately) that's not cash has the sellers buying down the rate," he said.

Southern Nevada home sales remain near historically low levels, roughly on par with 2025, according to Las Vegas Realtors data, though home values stay near record highs. Hawks noted sellers face stiff competition from homebuilders offering financing incentives, with some new homes priced below comparable resale properties.

Agent Steve Ord said sellers don't necessarily need to start with price reductions when homes fail to attract buyers. "In this market, I'm seeing buyers who like the home and see the value, but affordability and the monthly payment are what's holding them back," he said, adding that a $10,000 or $15,000 contribution toward a buydown can impact affordability more than an equivalent price cut.

Mortgage advisor Matt Hennessy said well-priced homes will inevitably force sellers to choose between reducing the sales price or offering a seller-paid interest rate buydown to attract buyers.

Sources: Las Vegas Review-Journal