New Markets render New Solutions.
WOW! The real estate market is an entirely different world than it was a year ago. Between interest rates, higher availability of homes, & lower buyer demand, the landscape has radically changed. There are new opportunities such as a 3-2-1 BUYDOWN as a result of the changing market conditions. Let’s take a look at a few ways to win in this market, whether you’re buying, selling or even investing.
SELLERS //// make no mistake - bidding wars are few and far between. Seller contingencies are back. You can’t just list your home and expect it to sell within a week - or can you? To potentially accomplish selling quickly, it critical to understand your target market - home buyers. Put yourself in their shoes; they’re looking at dramatically increased mortgage rates, and higher home prices. While there are more homes for sale, who wants to buy at 7+%?
To stand out from other sellers and close on favorable terms, you’ll need to make your ‘offer’ (home) more attractive. As we discussed last month, staging, professional photography, and data-driven pricing based on current trends may be enough, but how can you differentiate yourself even more? With mortgage rates more than double what we saw just a year ago, the challenge for many is affordability of their monthly payment. This is your chance to shine with creative mortgage products that directly address buyers' number one concern. One way to do this is with a 3-2-1 Buydown.
Essentially how it works is you, the seller, will pay the amount of
interest it would take to make the buyer’s interest rate ///
3% less in the first year
2% less in the second year
1% in the third year
Current market rate year 4 and beyond
Check out this example //
Maybe asking yourself, why would I want to do that? On average, homes are on the market four times longer than they were in 2021, and we are seeing price reductions daily. By offering a 3-2-1 Buydown, or another creative mortgage solution, creates a greater chance of attracting buyer interest & selling faster than average home on the market today.
Have more questions? email me at kelly.mccallister@8z.com. Happy to help.
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