Get Creative instead of reducing your price. That is, help buyers reduce their interest rate by buying down the rate for them. You get top dollar and they get a lower interest rate. It's a win/win.
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Advantage Realty #1 - Sebring, FL
863-212-5441
Wonderful advice! If the sellers can afford buying down the buyer's interest rate, then everyone wins. However, some sellers are not in the position, financially, to make any concessions.
Jul 17, 2008 12:53 AM
https://teamcoker.robertpaul.com - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop
I thought buydowns had gone the way of no doc loans. If they exist, and the buyers can still qualify at the non-buydown rate, maybe it would work. But a buydown to get them to qualify, is just a pre-foreclosure and only helps the broker and the seller. IMHO
Jul 17, 2008 12:57 AM
William Raveis Real Estate - Mamaroneck, NY
The temporary buydowns start out with a lower interest rate for 3 years and then work their way up to the interest rate that was bought down. i.e, Current rate is 6.5%. 1st year buy down is 3.5%, 2nd year is 4.5%, 3rd year is 5.5% and the balance of let's say 27 years would be 6.5%. This type of buydown lets the borrower know exactly what their mortgage would be.
Jul 23, 2008 02:22 AM
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