Both buyers and sellers win with a Seller Credit Rate-Buydown.

Let's Look at how that's possible.

Below is an example of a home listed for $450,000

with 3 options for selling.

Column 1 the buyer offers you full price with 10% down.

The interest rate would be 7.25% and the P&I monthly

payment would run $2,763.00 per month.

This is what you are hoping for.

But...

Your home has been on the market for days and finding a buyer is getting more and more difficult, so you move to Column 2 and lower your price $20,000.

The buyer's interest rate would stay at 7.25% and their P&I payment would lower to $2,640.00 per month.

You may attract more buyer’s… but you are now out

$20,000 for lowering your price.

There is another way for both you and the buyer to win.

Take a look at Column 3. Instead of lowering your price you post on Zillow that you are willing to do a seller credit rate-buydown. Your price stays at $450,000 but you offer the buyer $10,000 for a rate-buydown.

This lowers the buyer's interest rate from 7.25% to 5.99%, and their monthly payment would go from $2,763.00 per month to $2,425.00 per month. That's a savings of $338 each month, over $4,000 per year, and over $121,000 over the life of the loan.

The best part is you walk away with

$10,000 more in your pocket.

The Bottom Line...

Negotiations about price and seller credits are part of every real estate transaction. What many do not realize is that a seller credit rate-buydown offers more benefits for all parties involved in the long run:

1. Offering a below-market interest rate for the property will entice more buyers

2. You pocket more money

3. Saves the buyer money in the long run with lower

 payments and a lower interest rate

4. This helps hold home values for the area

5. Avoids the stigma of a price reduction

If you have any questions or would like to see a loan comparison similar to

 the one above for your particular property just fill out the form below and I'll send it right over.

Rates and payments are based on a credit score of 780 with 5% down.  Rates are subject to change