Don't reduce the price. Lower the Rate instead.

With a full shift in power from seller's market to buyer's market , both sellers and buyers need to reevaluate the approach to the transaction. The examples below illustrate how a simple seller credit can increase the number of prospects able to qualify for a listing and how it can produce significant savings for the buyer as well as helping to stabilze home values in a neighborhood.

Take a listing with a $450,000 Sales Price with a 20% down payment would have a loan amount of $360,000 at 6.5% that would be a payment $2275.44 per month and would require a monthly income of $5057 per month to qualify. Lets take that same listing and assume a price reduction of $13,500. That would make the new loan $349,200 assuming the same 20% down payment. The new payment would be $2207.00 and drops the income to qaulify to $4904.85 ($68.26 LESS). With a rate reduction (NOT a Temporary BUYDOWN) you would keep the sale price $450,000 and use a $13,500 seller credit to buy the rate down to 5.5%. This would drop the payment to $2044.00 per month this is $163.00 less a month in payment. And it drops the income to qualify to $4542.31. Which means there are a lot more folks could you show this property too. In addition the points are tax deductable. This really is a WIN-WIN FOR ALL PARTIES INVOVLED.

If you would like any more information about this or other sales stratigies please feel free to use me as a resource.

 

Update Rates Continue to move down
12/11/2008
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Mortage Rates continue to decline as the jobless claims continue. Tomorrow we will see the release of the November Retail numbers depending on how they come in we will who the consumer is holding up. If the numbers dont look in line with… more
Mortgage Rate Update
11/28/2008
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Today Mortgage Rates moved down to 5. 625% with zero points on a 30yr fixed Mortgage and 5. 5% on the 30 year fixed FHA. With these rates and the discounts in the market more folks should qaulify… With Rates moving downn over a half point from a… more
 

Jeffrey Wilkish

Nashua, NH

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Jeffrey Wilkish (Guaranteed Rate)

Address: 20 Trafalgar Square, Nashua, NH, 03064

Office Phone: (603) 765-0377

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