Smart Ways Buyers Are Offsetting Costs in Today’s Market
- Scott Sweeney
- 5 days ago
- 3 min read
Sticker shock is real, especially for Northern California buyers who’ve watched home prices and interest rates rise over the past few years. But here’s the good news: savvy buyers are finding creative ways to offset costs and still land their dream home.
If you’ve been waiting on the sidelines, it might be time to jump back in (strategically). Let’s break down how smart buyers are making it work.
💡 1. Negotiate Seller Credits
In markets like Sacramento, Elk Grove, and even parts of the Bay Area, sellers are becoming more open to negotiation again. Instead of asking for a price reduction, ask for a seller credit to help with closing costs or rate buydowns.
Example: On a $600,000 home, a 2% seller credit ($12,000) could help cover closing costs or buy down your interest rate—saving you hundreds per month.
Quick tip: Talk with your lender before you make the offer. They can help structure the credit so it gives you the biggest financial win.
🏠 2. Explore Temporary Rate Buydowns
If today’s mortgage rates are giving you pause, consider a 2-1 buydown. This option temporarily lowers your rate for the first couple of years of your loan.
Here’s how it works:
Year 1: Your rate drops by 2%
Year 2: Your rate drops by 1%
Year 3 onward: The full rate kicks in
That’s real breathing room early on—and many buyers refinance before the higher rate takes effect.
Real-life scenario: A Roseville couple used a 2-1 buydown to cut their monthly payment by $600 in the first year. They plan to refinance if rates drop, but in the meantime, they’re building equity instead of waiting.
💰 3. Look Into Down Payment Assistance
California offers several programs to help with down payments—especially for first-time buyers. Programs like CalHFA’s MyHome Assistance Program can help cover part of your down payment or closing costs.
Pro tip: These programs often have income or price limits, but they’re worth exploring! Your lender or Realtor can help you see if you qualify.
🌳 4. Consider Expanding Your Search
A small shift in location can make a big difference. Many buyers are finding great opportunities by moving slightly outside high-demand areas.
Example:
Bay Area buyers heading to Tracy, Rocklin, or Woodland are finding more house for the money.
Sacramento buyers considering Rancho Cordova or West Sacramento can save thousands while staying close to major employers and amenities.
Fun fact: A 30-minute difference in commute can often mean $100,000–$150,000 less on a home’s price tag!
🧭 The Takeaway
The path to homeownership in Northern California may look different today—but it’s still possible, and often smarter than renting long-term.
The key is strategy: use credits, incentives, and creative financing tools to make the numbers work for you. So before you hit pause on your home search, talk with a local Realtor and lender who can help you explore these options. You might be closer to “home” than you think.
Scott Sweeney
Elk Grove Realtor
Serving Sacramento and beyond from the Bay Area to South Lake Tahoe
707 330 2324
CalBRE 01938720
About Scott Sweeney
SweeneySells
Full Time Realtor 13 Years +
Over 100 Families Served
Top 5% Producing Agent
Buying & Listing Specialist
Contract & Negotiation Ninja
CSUS Business & Marketing Graduate 2006
With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.
Reach out to SweeneySells today, and take the first step towards your real estate goals!
📞707-330-2324
Top Producer 2016-2023
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