Buyers, Sellers and Realtors 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 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...

The 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 the 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 the seller's are now out $20,000 for lowering your price and your commission went down.

There is another way for all parties to win.

Take a look at Column 3. Instead of lowering the price you post on Realtor, Zillow or where ever the property is listed that the seller is willing to do a seller credit rate-buydown. The price stays at $450,000 but the seller offers 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 everyone walk's away as a winner.  The seller keeps $10,000 more in their pocket, you make more commission and the buyer has a lower monthly payment.

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