Even a property well priced in an over supply market needs to create a competitive advantage.
Just that one half percent increased the buyer's purchasing power on a $400,000.00 loan by $22,000 and at 5% by $47,000.
- Demonstrating to a buyer the power of a lower rate and helping them understand the advantages of focusing on the monthly affordability and the unique window of opportunity that exists today will help them re-engage.
- Most lenders on a 30 year fixed buy down will qualify the buyer on the lower rate and that reduces the buyer's qualifying ratios which will help them qualify for the property.
- It's important to discuss this same opportunity with the seller and the competitive advantage of being proactive in offering a buy down in order increase activity and interest in their listing
Many buyers dropped of the market out when the mortgage melt down happened in November. They were shopping in the market at 6%. Conforming money has recently been 5.5% and under.
As rates hover below 6% the affordability index for the buyer improves and with a buy down the rates drop to numbers we've never seen before and according to most economists will likely not see again in our lifetime.
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