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Paying down points

By Maggie Bafalon

Real Estate Agent with Frank Howard Allen Realtors

September 04, 2007 05:00 PM

Just one more thing for tonight before I fall out asleep!

Today our team heard a presentation about "Paying down points" from our local Countrywide VP. He is a highly respected member of the financial community here (not to mention all he does for non-profits) and his presentation was about two things: #1 the great benefits of counseling your seller to buy down points for the buyer instead of lowering the asking price and #2 assisting your buyers in having a financial back-up plan to help them (and you) close the deal - just in case the first arrangement doesn't work. And here, they often don't work!

Are any of you doing this now? Would you advise your clients to do either of these? If you have a favorite lender for your clients, do you have a 2nd favorite?

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Micki OToole

PropertyADVANTAGE - Carlsbad, CA

General Manager

Maggie, although I'm not a realtor, I am a loan originator who whole heartedly agrees with the rate buy down program. In a slow market like we have now, advertising or putting on the MLS that your listing has special financing available, is a great way to attract potential buyers. I also am not opposed to realtors having their clients speak to a second lender just to make sure. With our ever changing guidelines, what one originator quotes today may not be here tomorrow. All realtors should be working with an originator who is keeping up on the market DAILY. Ask questions of your preferred lender to make sure they are current on what is happening. Protect yourrself and your clients!

Sep 04, 2007 05:11 PM

Maggie Bafalon

Frank Howard Allen Realtors - Sonoma, CA

e-Pro, CHMS, CNS

Thank you for your comments. We need to do everything possible for our clients right now if we intend to help them realize their dreams and we want to close business - or even be in business after this year! One thing additional I did just hear yesterday is that you have to be careful where you put your comments about the availability of special financing or any details of same. Apparently, in our MLS system, BAREIS, you need to write that detail outside of the "public" remarks, instead in the confidential remarks. This came from a Realtor who had recently been criticized for doing it incorrectly.

Thanks again,

Maggie

Sep 05, 2007 03:15 AM

Paying down points

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Maggie Bafalon

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