Some HighlightsWant to know what experts say will happen in the rest of 2023? Home prices are already appreciating again in many areas. The average of the expert forecasts shows
$50,000 Real Estate Trick that Beneifts BOTH Buyers and Sellers
Dated: October 3 2022
So the interest rate today is keeping buyers from buying homes and sellers from selling. But I've got a tip that will help both of you.
Have you ever heard of a temporary interest rate by down to help sellers save on the price discount and buyers save money on the payment? This is how it works!
Take a look at this loan scenario for a home price at about $299,000. The down payment is 5%. At today's interest rate 6.99% for 30 years, insurance taxes and PMI all included, the total monthly payment is 2445.
So with a temporary buy down there is a lump sum of money paid up front or in lieu of a price drop to buy a reduced interest rate for the first two years of the loan. For the first year's rate in this example is now 4.99% For a reduction of $365 a month and a monthly payment of 2079 as opposed to the 2445.
The second year the rate goes up 1.4 to 5.99 for a reduction of the monthly payment to 2257.
So that was the buyer benefit. Let's talk about the seller side.
Sellers are getting lowball offers or no offers at all, but instead of settling on a steeply discounted price, offer this to one buyer down instead for the upfront fee of $6,616.
In this example, you're offering the equivalent of a $53,500 price drop.
Buyers the ball is in your court! And, as I am not a mortgage professional, you'll need to call yours and inquire about this Temporary Buy Down program.
If your lender doesn't offer this call me so I can connect you and sellers have this option in your hip pocket to salvage your sales price.
As always consult a market expert when buying or selling a home or just called next time our town.
Thanks for watching. Have a great day.
Cristi McGowan is a Native Wacoan with deep roots in real estate as most of her mother’s family were, and still, are Brokers. Cristi came to appreciate the quality of life that Waco offers, especial....
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