Helping Homeowners Sell Homes

By
Mortgage and Lending with Prime Equity Mortgage Group

Though Idaho is still enjoying a growing market, we have slowed from the breakneck pace of last year.  Now is the time to use creative financing to obtain a win-win scenario for both buyer and seller.  These methods can be used to set a seller's home apart from their competition. 

For example, a seller listed their home at $260,000.  A buyer offered $240,000. Their monthly mortgage payment at 7% would be $1,596.  The seller could have accepted or rejected the offer or countered at, say, $250,000.  If they countered at $250,000, the buyer's payment would have been $1,663 per month, more than the buyer wanted to pay.

But if the seller asked for their $260,000 price but offered to buy $5,000 worth of discount points to permanently reduce the borrower's interest rate to 6%, the seller would receive $255,000 and the buyer's monthly mortgage payment would be $1,558-less than the original offer.  Talk about a win-win! 

 

Comments (1)

LLoyd Nichols
Premier Florida Realty of SWFL - Fort Myers, FL
Southwest Florida Homes By The Sea
Glory its a great way to make it work. Do you also call it buydown or can you clarify that. I have used that  a few times and it does help both parties.Thanks for  sharing this most important  information.
Nov 23, 2007 09:44 AM