What is the number one thing needed to get your home sold? Money. It is that simple. Now I am sure that you already knew this but it is worth pointing out for a few reasons. How many home flyers and advertisements do you see that tell you all about the home. Square footage, price, how many bedrooms, bathroom and all the goodies. However, most of them fail to mention the most important thing, money. They mention the price of the home but no options on how to get a loan for it. Perhaps some mention a payment and an interest rate but little else. So what is my great idea? Well, first off it is not my idea. It was thought up by someone a lot smarter than me.
Ok, so let's look at the numbers. Let's say you are trying to sell your home for $250,000 and it has been on the market awhile so a price reduction is suggested. You and your Realtor decide on a $10,000 price reduction and take the necessary steps. But you don't want to wait. You want your home sold and you need it sold right away. Instead of dropping the price you could do something more attractive. You can offer to buy down the interest rate for the buyer. Typically it will cost you 1% of the loan amount to buy down a quarter percent of the interest rate. So, if a buyer wanted to buy your $250,000 home and you wanted to buy down their interest rate by 1% it would cost you $10,000 dollars. That means someone who can only afford a $225,000 loan amount or a $1500 month payment can now afford your $250,000 home. Instead of getting an offer for $225,000 and losing $25,000 you only have to give up $10,000 or the same amount of your price reduction you were going to do. Make sense? If not feel free to contact me today so that I may better educate you on this subject. Enjoy your evening.