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!
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