There are plenty of factors that go into making a deal work for both buyers and sellers. There are also a lot of great ideas that can offer a win-win. One recently that I was introduced to was having sellers offer a buydown of interest points for the buyer. With the flood of bank owned inventory on the market, some buyers simply don't have the liquidity to put $15,000 into a property. However, if a seller is willing to "negotiate" on price through offering discount points to buyers, it offers the buyer a higher qualification to purchase and a seller more potential buyers.
I can understand that there are a ton of caveats. The first one being to make sure the buyer is aware and financially capable to pay the mortage in the event it's a temporary buy down. I'm passionate about financial responsibility. This type of program won't work for those that are financially maxed, it offers a high rate of default, which is what has put us in this position in the first place. This type of program can offer buyers a home in a condition that is acceptable to them, and it increase possible exposure for the seller. Each situation needs to be considered on a case by case basis. And this certainly could be a great fit for some currently in the market.
Talk to your local loan officer for details and options that may work. It's worth exploring!
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