Let’s talk about that price reduction before you pull the trigger. We know in competitive markets sometimes it is a must, however, before you make that move let’s talk about how to attract more buyers and help them win at the same time. We have a great strategy that will serve both seller and buyer and you’re going to love it.
Let’s say your home is on the market for $450,000 and its been sitting for more than 60 days, your first thought may be to reduce the price by $10,000 to get fresh eyes on it. And it likely will. But let me tell you how we are helping sellers keep their full asking & bring more buyers to the table. Instead of reducing it by $10,000, offer those funds in the form of a credit to your buyer for what we call 3-2-1 temporary buydown. In an environment like this where interest rates are coming down, but still in many cases higher than buyers want to pay the 3-2-1 temporary buydown is a great opportunity to alleviate those pains for them and make your home stand out.
So how does it work? I am glad you asked. The credit is used to buy their rate down, let’s say the market rate is a 6.125%, in year 1 they are going to have a 4.125%, in year 2 it adjust to 5.125% and then in year 3 it will level out at the locked rate of 6.125%. Saving them thousands over the course of the first 24 months. In real estate the name of the game is get the most you can out of it, and a win-win in any deal is a slam dunk.
So let’s recap how do you as the seller win? Not only do you get to maintain your asking price which means your take home equity after sale is much larger than it would be with the general price reduction, but offering something special to buyers will guarantee more offers. Reach out to the Anderson team for more information on how to make this and other strategies work for you.
- Jenny King with US Mortgage