Your home is up for sale, but the market is slow. Finally, you get an offer on your home, but it is for less than you would like to take. Should you reduce your price to get it sold? Perhaps not! Instead, you may want to offer to buy down the buyer's interest rate.
Monthly payments:
If you reduce the price by $20,000 on your listing you will save the buyer $103.00 per month-
however, if you use the same $20,000 to buy down the interest rate you will save the buyer $541.00 per month!
Qualifying for a loan:
Did you know that a buyer of your $450,000 listing needs $96,000 in income to qualify for the loan. However the buyer of your reduced $439,000 listing needs $94,200 in income to qualify for the loan. If you took that same $11,000 dollar reduction and paid down the interest rate, that listing needs only 474,400 in income to qualify for the loan!
Care for more examples? Feel free to contact me and I'll show you how it works! Remember, with many people, they don't care what the price is. The monthly payment, the down payment and the ability to close the escrow are what would make the difference!
Until next time,
Patti Phillips
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment