Selling a home is not quite like it used to be. Placing a 10-word description of the house in a newspaper or real estate publication is only going to make you feel like you're trying. But it probably will not result in a sale.

Now that we have evolved into a buyer's market, seller's have to be even more creative and captivating to generate a sale. In a sea of homes for sale, buyers have the luxury of waiting for the perfect deal to come to them. As mortgage rates are still high, potential buyers worry more about monthly payments and the overall asking price than other incentives such as free closing costs or waiving homeowner's association dues.

The article, "Lenders resurrect interest-rate buy-downs as buyer incentives," written by Matt Carter of Inman News explains how seller's are generating buyer interest from an old school incentive.

The fact is that most sellers who are really trying in the market are offering to pay closing costs or offer free gardening and pool cleaning services. But this just isn't cutting it in today's competitive market.

"So sellers are dusting off an old tool from the days of high interest rates that can give buyers a break on their mortgage payments: the interest-rate buy-down."

An interest-rate buy-down is when a seller agrees to pay the lender extra points up front in exchange for a larger reduction on the asking price, which is obviously an attractive option for buyers.

"For about $18,000, a seller can permanently buy down the interest rate of a $450,000, 30-year loan a full percentage point, shaving $289 a month off the buyer's mortgage payments, said Joe Carroll, of MetroCities Mortgage."

"'As a rule of thumb, you basically need twice the price reduction to equal the buy-down's advantage,' said Carroll, MetroCities' Southern California region first vice president."

Incentive buy-downs were very common for years before the most recent housing boom. As prices and interest rates rose, sellers could not afford the buy-down tactic, especially since selling did not take much effort during this time.

"'If you mention buy-downs to a group of Realtors or loan officers, half of them won't know what you're talking about,' Carroll said. 'It's something we've had to dust off because the market dictates it. Now that the buyers are more in control, we use it as a tool prior to a price reduction.'"

The buy-down will most likely save the seller time and money because the buy-down will be cheaper than reducing prices and is more attractive so the property will sell faster. The buyer seems to like saving money as well.

"'Sellers' concessions of this variety are something we have been recommending to people since the housing pendulum began swinging from the seller's to the buyer's market,' said Quicken spokesman Michael J. Dunklee. 'It is a win-win situation.'"

The main problem associated with a buy-down is that it is difficult to advertise through explanation. People, especially buyers, are attracted to quick, concise advertisements. You can lose a buyer or lender if they do not completely understand the process.

"It's hard to explain an interest-rate buy-down in an MLS listing. Agents will instantly see a reduction in asking price, but only those already interested in buying a property will notice an offer of an interest-rate buy-down as an incentive."

Buyers are conducting the market and what they demand is better incentives. The interest-rate buy-down is time-tested and effective.