You have had your home on the market for awhile and you have had a few showings but no offers. When your home won’t sell what do you do? You have two choices, improve the condition or change the price. But there is another idea that just might work for you.
One of the challenges of our current market is that buyers have lost their purchasing power. What they could afford a few months ago, they cannot no longer buy because interest rates have made that same house unaffordable. For example a $300,000 mortgage used to cost buyers $1,260 a month. That same mortgage today can cost that same buyer $1,800 a month. That makes a huge difference in whether or not a buyer can buy and at what price they can be shopping for their next home.
What Can You Do?
What can you as a seller do to make this situation any better for you when you are trying to sell your home. Here is an idea. Your home is currently on the market for $565,000. What if you offer a $10,000 credit to the buyer for them to buy the interest rate down? What help does that provide the buyer? Let’s look and find out. The buyer is paying full price for your home. They are putting 20% down to purchase. That makes their loan amount $452,000. The going interest rate is currently 5%. IF you credit your buyer the $10,000 to buy their rate down, their interest rate will be 4% and that will save them $400 a month on their payment. That is $4,800 a year and that is almost $10,000 in two years.
When Your Home Won’t Sell
Do you think that your buyer might appreciate that? I think the answer to that question is a big YES!!! Doing this credit could make a difference between your buyer being able to buy your home and not being able to afford it. This option is better than the option call the two, one buy down. That lowers the interest rate for only the first two years that the borrower has the loan. This would be for the life of the loan. The benefit to you as the seller is that you are able to sell your home. You also have provided the buyer with a benefit and have received a full price offer. Yes, you have provided a credit to the buyer of $10,000 but that is often the amount that you might have to negotiate in the market today.
This is a creative way of getting your home sold. That may be what it takes today to get the job done. If you are looking for someone that can get your home sold in the market we are in today or the market that we might be in tomorrow, call Lestel. She can do it.
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