Strategy To Help Motivate That Buyer To Move

By
Real Estate Broker/Owner with Carousel Realty of Dyer County Tn 248435000

Earlier today I got to thinking about a current client who made an offer 3 weeks ago on a house at $95,000 but the seller countered much higher. It is listed at $115,000. My client kept telling me he wants to get the house and will pay up to $100,000 and no more.

I ran some numbers and was astonished by what I came up with. If he sticks to his no higher than $100,000 and seller finally gives in 4 months later the interest rate will be up to around 4.5% or even maybe 5%. That principal and interest payment would be $536.82(5%). If he were to meet this seller half way at $105,000 and lock in now he would get a rate around 4% with a payment at $501.29 or even at 4.5% rate the payment would be $532.02 which is still less than holding out for $100,000.

Car dealers oftentimes quote cars based on monthly payments and now I know why. Most people think in terms of monthly payments. I should know in a little while if my strategy worked but my guess is yes! 

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Rainmaker
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Erika Rae Albert, Austin Real Estate Expert
E*Rae Real Estate Group- Powered by eXp Realty LLC - Austin, TX
Exceeding Expectations in Every Transaction

Good point!  I'd also be interested to know what the monthy payments would look like at 4% interest rate for 100k vs 115K is it really a huge difference?

Jan 31, 2018 01:39 PM #1
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Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

$477.42 for the $100,000 and $549.03 for the $115,000.

Jan 31, 2018 02:39 PM #2
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I use an alternate strategy when negotiating offers with seller agents on homes that aren't moving. Think of how much money the seller is going to be paying in mortgage costs, utilities, etc if the home sits for several more months. The seller sometimes hasn't given that much thought until I bring it up.

Jan 31, 2018 04:21 PM #3
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

As they delay a home purchase, the mortgage interest rates will be rising.

Feb 08, 2018 09:00 AM #4
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Mike Frazier

Northwest Tennessee Realtor
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