In the south jersey, Philadelphia area, home prices actually fell almost 2% in the previous quarter. Sellers are having a very difficult time selling for the price that they want. However, this is not the first time this country has experienced a slow down in new and existing home sales. Here's some things to look at to keep your head up in these tough times of real estate.
1. New home sales are down 20% from last year. That means that existing home sales will hold more of the market
2. There are creative ways to sell a home without reducing the price. Offer to pay for a 3-2-1 buydown to any potential buyers that qualify. This may cost the seller up to 3% of the asking price. The buyer will be given a rate 3% lower than the actual note rate for the first year, 2% the second year, 1% the third year and finally the actual note rate starting on the fourth year. This helps in a bunch of ways. It attracts buyers by offering them a much lower payment for the first few years. It also helps the sellers to negotiate this deal instead of reducing the house price dramatically.
Example of a 3-2-1 buydown (Actual Note rate is 6.50%). Buyer will actually pay 3.50 the first year, 4.50% the second year, 5.50% the third year, and finally the 6.50% for the rest of the term.
Contact me about more ideas on how to sell your client's home. There are even more ways to help... Many more...
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