I was just watching a CNN snippit about tips for selling your home. I was all about it until CNN's Gerri Willis stated that the seller could buy down the points. I hate this idea as it brings back those "teaser rates". It's just like the adjustable rates and it's something to the effect of how we got into this big mess. Of course most sellers aren't going to know the financial situation of their buyers and won't know that at the reduced rate, they're barely scraping buy so after the first year they're doomed. There are cases where this "adjustable could be beneficial", but in my opinion, after seeing our market the way it has been, I wouldn't want to do that. Not while there are other options that don't run the risk of causing payment shock. So I'd like to re-iderate other options that sellers have in helping or motivating potential buyers. I love the "no payments for up to six months" program we have. It's often less expensive (you may do less than six months and still look entising) and I think more attractive.
I kind of agree with you Crystal I think better selling tips are to pay down payment or closing costs via nehemiah or ameridream. These help the buyers into the home that they can afford the monthly payment for
I want to find those qualified buyers with money, but I will take what I can get and work as hard to make something happen.
Roxanne Schilling, Realtor at Lake Tulloch
Agreed. At the end of the day, whether it be sellers assist, paying for 6 mos mortgage, paying for transfer taxes, whatever, it still comes down to price. Why not just lower the sales price to begin with ? The little incentives can be somewhat enticing but are not the reasons why the house gets sold. The people that have little money but good credit and income are helped out with the assist. There is nothing wrong with using some of that assist to pay a point to lower the rate - especially if it is a fixed rate. A 5/1 arm is not horribile either - is a case by case basis I think. What upsets me more in the media is the "dont buy, dont buy" mentality with all the doom and gloom. The market is pretty good up here in Philadelphia ! I imagine it is doing okay in Hotlanta too : )
I agree with Christotopher and Stephanie.......still comes down to price...lower the price and get it sold.
Roxanne Schilling, Realtor at Lake Tulloch
The only problem with lowering the price, is people still make really low offers as they are looking for a steal. Lowering is good and can get an offer, but they are usually low. At least it is an offer that perhaps you can negotiate back to where it should be.
True. I, as a mortgage broker, was looking at it from a financing standpoint. Absolutely, lowering the price would be ideal.
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