What best defines a purchase price reduction?

A purchase price reduction is best defined as a change in the price of a property or item after the sale has officially closed, which directly impacts the net amount the buyer ultimately pays. This situation can arise after negotiations where, due to various factors such as discovering issues with the property, the seller agrees to lower the final sale price after the transaction has been completed.

Selecting an answer that includes the reduction occurring before the sale closes would not accurately define the specific context of a post-sale price reduction. Options that suggest the reduction as a gift or relieve the buyer of debt also miss the key aspect of how a price reduction is specifically a formal adjustment to the sale price agreed upon after the transaction is finalized. Thus, the emphasis on time—after the closing has occurred—makes the definition precise and relevant to the context of real estate or sales transactions.