What is a purchase price reduction? When the buyer and seller agree to reduce the purchase price of real property after agreeing on price terms, but before the sale is closed. When an insolvent buyer receives credit from a seller for the purchase of property, and the seller later reduces the purchase price and relieves the buyer of some of the debt associated with the original purchase. When the buyer and seller agree to reduce the purchase price of real property after the sale has closed, and the seller returns the agreed-upon amount to the buyer. When a solvent buyer receives credit from a seller for the purchase of property, and the seller later reduces the purchase price and relieves the buyer of some of the debt associated with the original purchase.