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5 tips for a Buyers Market

By
Services for Real Estate Pros with Independent

So you heard its a buyers market, and areas such as Roseville that would be true.  I would like to share a few tips for buyers that might help you get that home.

1.  Ask for the seller to buy down a point on the loan.  That might help lower the monthly payment and make the home more affordable.

2.  Ask the seller to contribute to non reoccurring closing costs.  Non reoccurring closing costs are things like title insurance, notary fees, escrow fees.  This may give you the buyer more money to contribute to your down payment.

3.  You like the  house but think it would be better if it had an extra window in the back room.  Instead of asking for a reduction in the price of the home.  Ask for the seller to have one installed. The seller may have some ties to the community and could get it at a reduced price.

4.  In some cases a seller may be able to finance your down payment.  A good Realtor would be able to help negotiate seller financing in the contract.  This could be a great tool if the seller has a lot of equity in the home.  This allows them to get the home sold, and be able to reinvest some of their equity.

5.  You like the house, its in a great area, but.  Communicate your concerns, let your Realtor help find the solution.  Especially if you think the home is over priced, offer what you and your Realtor feel is a good respectable price.

Happy House Hunting, there is some great deals to be had in Placer County.

Jacob Morales - Arizona Mortgage Planner
US Bank - Scottsdale, AZ

Good points Richard. Just a thought though. Typically buying a point is going to make less than a 5% difference in terms of payment. While it may seem like a nice gesture it may just encourage the lender to roll in additional commission on the back end and do very little for the buyer. I've seen it happen before.

Great post and good points overall.

May 02, 2007 05:32 PM
Jodi Truscott
VITEK Mortgage Group - Roseville, CA

Welcome to AR Richard - I drive by your listing off of Main Ave daily...are you generating any traffic so far?

Regarding seller buying down points - when done correctly, this is a huge win-win for both the buyer and the seller.  The buyer transitions into a new payment (especially a first-time buyer) and a seller avoids an off the top price reduction to stay competitive.  The key is the buyers market (for agents) is to find sellers that are motivated to help the buyer.  Here's an example of a seller-paid 2/1 Buy-Down...not a "pay for a point"

  **BENEFIT TO BUYERS** (A BIT MORE THAN 5%)

YearInterest RateMonthly PaymentYearly PaymentsMonthly SavingsYearly Savings% Savings
14.500%$1,520.06 $18,240.67 $376.15 $4,513.78 19.8%
25.500%$1,703.37 $20,440.40 $192.84 $2,314.04 10.2%
3-306.500%$1,896.20 $22,754.45 $0.00 $0.00 0.0%
Two Year Total Savings   $6,827.82 15.0%

My partner agents are marketing "Exclusive Financing" with their listings using 2/1 buy-downs or similar - this is an attention-getter!  Any questions, just let me know.

Jodi T. - Roseville

 

May 10, 2007 06:11 PM
Span City
Independent

Jodi,

  Thanks for adding to the post, thats what makes active rain a good community.

No, I am not getting the traffic on that listing that I would like.  We are down to 339500 on that home on the corner of main and atkinson.

 

 

May 14, 2007 03:19 PM