The "Golden Handcuffs": How to Sell When Rates Are High (And Why You Shouldn't Wait)

By Adam Martin Team Lead, Loxley Martin | Top-Rated Dayton & Greene County Realtor

It is the conversation I have almost every day. A couple sitting in a beautiful home in Beavercreek looks at me and says:

"Adam, we want to move. But we have a 3% mortgage rate. If we sell, we are trading it for a 6.5% rate. That feels insane."

I call these "The Golden Handcuffs." You are locked into a great rate, but maybe your house is too small, your commute to Wright-Patt is too long, or you just want a change. You feel stuck.

Here is the reality of the 2025 Dayton market: While high interest rates (hovering around 6-7%) make moving more expensive, they have created a massive opportunity for sellers that most people are missing.

Here is how to unlock those handcuffs and why Question #27 (Rate Buydowns) is the secret weapon smart sellers are using right now.

The "Inventory Gap": Why Prices Are Still Rising

You would think high interest rates would crash home prices, right? Wrong. In Dayton, the opposite has happened.

Because so many potential sellers are refusing to move (hugging their 3% rates), there are very few homes for sale.

• The Data: In October 2025, Dayton had only a 1.9-month supply of inventory. A "balanced" market is 6 months.
  
  
• The Result: Because supply is so low, prices are actually up. The median sale price in the Dayton area hit $255,000 this year, up over 6% from last year.
  
  

What this means for you: You might have a higher rate on your next house, but you are cashing out at a record-high price on your current house. You have more equity than ever before to put down a massive down payment, which lowers your monthly cost.

The Strategy: Don't Drop the Price, Buy Down the Rate

This is where the magic happens. When a buyer hesitates because "the monthly payment is too high," your instinct might be to drop your asking price by $10,000. Don't do it.

A $10,000 price drop only saves the buyer about $60/month on their mortgage. It barely moves the needle. Instead, use that same money to offer a Mortgage Rate Buydown (specifically a "2-1 Buydown").

How a 2-1 Buydown Works: You (the seller) pay a concession at closing to temporarily lower the buyer's interest rate.

• Year 1: Their rate drops by 2% (e.g., from 6.5% to 4.5%).
  
  
• Year 2: Their rate drops by 1% (e.g., from 6.5% to 5.5%).
  
  
• Year 3: It returns to the normal note rate.
  
  

Why this wins:

• The Buyer: Gets a payment that is hundreds of dollars cheaper for the first two years, giving them time to refinance if rates drop later.
  
  
• The Seller (You): You sell your home for full market value. A buydown often costs less than a price reduction but creates way more excitement.
  
  

The "Math" of Selling in 2025

Let’s look at a real scenario.

• Option A (Price Cut): You drop the price by $15,000. The buyer saves ~$90/month. They are still worried about the rate.
  
  
• Option B (Buydown): You keep the price high but give a $8,000 credit for a 2-1 Buydown. The buyer saves $400+/month in the first year.
  
  

Which house do you think they buy? Yours. You sold for a higher net price, and the buyer got a lower payment. Everyone wins.

The Bottom Line

Don't let the "Golden Handcuffs" paralyze you. The market is low on inventory, which puts you in the driver's seat. By using creative strategies like rate buydowns, you can sell for top dollar and help a buyer afford your home, even in a 6.5% world.

You don't need low rates to sell. You just need the right strategy.

Let's Run the Buydown Numbers.

Curious how much a 2-1 Buydown would cost for your listing? I can run a "Seller Net Sheet" that compares a Price Drop vs. a Rate Buydown so you can see exactly which one puts more money in your pocket.

Adam Martin Team Lead, Loxley Martin Your Dayton & Greene County Real Estate Expert