Today I posted below on all of our listing in both public comments and Realtor remarks.
“With full price offer, seller is amenable to a buyer credit in order to effectuate a 2/1 rate buy down, if financed. Specific terms to be fully negotiated between buyer and seller at the time of buyer offer.”
With interest rates where they are today we need to find creative ways to finance purchasing a home. The experts can’t agree on whether rates are going up or down or moderating so what can Realtors and lenders do in this market? Get creative which is what the 2-1 Buy Down is all about. Many Realtors recommend price cuts why not find a way to make home buying more attractive in today’s market other than slashing prices. Interest rates is one of the leading reasons people are delaying buying a home and we have a way to help overcome and maybe give relief for a period of time.
The 2-1 Buy Down works like this the seller instead of cutting the selling price offers a two-year reduced interest rate by paying the lender money which is kept in an escrow account held by the lender. For the first 12 months, the interest rate is 2% lower than current rate, the second 12 months the interest rate is 1% lower. Depending on the size of the mortgage it could be a $400 or more monthly savings for the byer. Each month the amount needed to cover the difference between the lower rate and actual rate is drawn from the escrow account.
Advantages we have many, as a seller your property stands out with a the 2-1 Buy Down also instead of your listing agent asking you to lower the price you ask them to advertise the Buy Down which many times is less than a price reduction. As a buyer, there is no prepayment if the interest rates drop you can refinance at any time and the balance left in the escrow account is applied to your loan balance.
Thinking of buying? Let The Betts Team help you by representing you and making an offer including the 2-1 Buy Down. Thinking of selling? Again, let us help you rather than just reducing the price on your home offer the 2-1 Buy Down for a full price offer. Want to discuss this approach more? Call me, I would be glad to answer questions and explain in detail!
Dick Betts, REALTOR®
The Betts Team
Touchstone Real Estate
The Villages, Florida
717-860-3107 cell
Dick@DickBetts.com
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