Midlothian Price Cut or Rate Buydown: What Sellers Gain
Last updated: November 5, 2026
Both work, and they cost you differently. On the $470,000 Midlothian median, a half-point rate buydown saves your buyer about $126 a month. A price cut of about $23,100 gives the same monthly relief. If the lender quotes the buydown for less than that cut, the buydown is the cheaper way to move your house. If it costs more, cut the price.
Midlothian homes closed at 95.7% of list in September, so the median seller already gave up about $21,100 against the asking price (NTREIS, September 2026). The next move is where you spend your next dollar. Here is how to decide.
Should you cut your price or offer a rate buydown on a Midlothian house?
Pick the one that costs you less per dollar of monthly payment relief. Buyers shop by the payment, and 7.24% turned a $470,000 house into a $2,562 principal-and-interest payment with 20% down. Either move lowers that payment. Only one of them lowers your price on the record.
| Option | What your buyer gets | What it costs you |
|---|---|---|
| Price cut of about $23,100 | About $126 less a month, and a smaller loan and down payment | $23,100 off your net |
| Half-point rate buydown | About $126 less a month, for buyers who finance | The lender's written quote at contract |
Ask the lender for the buydown cost in writing before you choose. Pricing changes daily, so any number I print here goes stale. The $23,100 cut is the line to beat.
What does a Midlothian payment look like at 7.24%?
The Midlothian median sold price was $470,000 in September 2026, down 4.2% from $490,500 a year earlier (NTREIS). With 20% down, the loan is $376,000:
| Rate | Principal and interest | APR |
|---|---|---|
| 7.24% (now) | $2,562 | 7.31% |
| 6.74% (half a point lower) | $2,436 | 6.81% |
| 6.17% (a year ago) | $2,296 | 6.23% |
The half-point step is $126 a month. The year-ago rate is $266 a month lower than today's. A buydown or a cut only closes part of that gap, which is why buyers still hesitate. Rate source: Freddie Mac PMMS, October 29, 2026. Sales data: NTREIS, September 2026.
Why not just wait for a buyer to ask?
Because buyers who need your price lower rarely say so. Midlothian had 293 active listings in September against 58 pending sales, and the median home took 83 days to sell (NTREIS). That is 4.6 months of supply, so your house sits next to a lot of others. Our look at how long it takes to sell a house in Midlothian shows the pace.
Homes priced to the closed sales move in that window. Homes priced to hope wait.
When does a price cut beat a buydown?
A price cut wins in three cases:
- The buyer pays cash or uses a loan where the seller cannot fund a buydown.
- The lender's buydown quote comes in above the $23,100 cut.
- Your price sits above the last three closed sales within a mile. A buydown on an overpriced house still leaves an overpriced house.
The gap between asking and closing prices in Midlothian shows where the median house landed. If yours is above it, cut first, then talk about buydowns.
When does a rate buydown beat a price cut?
A buydown wins when the quote is under the cut and your buyer finances. You keep the higher sale price on the record and pay the lender's cost at closing, so compare the two as net dollars to you. Seller-paid costs have limits that vary by loan program, so your lender and the contract set the ceiling. Run that number before you list, not after the first offer.
Price position matters here too. A list price that sits just above a search cutoff hides your house from buyers, which our post on the Midlothian list price search breakpoint explains. The same math ran for DeSoto in our DeSoto price cut versus buydown comparison.
What should you do next?
Start with what your house is worth against the last closed sales, not the online estimate. Get your free Home Selling Score and see where your price sits before you pick a cut or a buydown.
The price cut is your cost. The buydown is the lender's quote. Compare the two numbers, then choose.
FAQ: price cut or rate buydown when selling in Midlothian, TX
Can a seller pay for a buyer's rate buydown in Texas?
Yes. It is a seller concession written into the contract. The limit depends on the buyer's loan program, so the buyer's lender confirms the ceiling before you agree.
Does a rate buydown help a cash buyer?
No. A buydown only lowers a financed buyer's rate. A cash buyer sees only the price, so a cut is the tool for that buyer.
What is a 2-1 buydown?
A 2-1 buydown lowers the buyer's rate by two points in year one and one point in year two, then the rate returns to the note rate. Ask the lender for the seller cost in writing.
Will a price cut hurt my appraisal?
A price near the closed sales supports the appraisal, because the appraiser works from those sales. A price above them is where appraisals come in short.
How do I know where to price?
Use the last three closed sales within a mile of your house, adjusted for condition and size. Active listings show competition, not value.
Steven J. Thomas, Broker, Refind Realty DFW · Loan Officer, Envision Home Lenders, NMLS #689220. Baylor University financial planning degree, 20+ years in financial services, 14+ years in real estate. Based in DeSoto, TX.
Refind Realty DFW. TREC Broker License #0657467. Texas law requires brokers to give you the Information About Brokerage Services (IABS) and the Consumer Protection Notice, so ask for both before you sign anything. Equal Housing Opportunity. Based on current conditions; no price, rate, or timeline is guaranteed.
Loan Officer: Steven J. Thomas, NMLS #689220, Envision Home Lenders. Payment examples are principal and interest only on a 30-year fixed with 20% down. They are examples, not a rate quote or a loan offer. APR assumes $1,495 in lender fees, no points, 15 days of prepaid interest, and no mortgage insurance. Taxes, insurance, and HOA dues are extra. The 7.24% rate is the Freddie Mac PMMS 30-year average for October 29, 2026; 6.17% is the same survey's year-ago figure. The $23,100 price cut is the price change that produces the same principal-and-interest drop as a half-point rate cut on the $470,000 median.
