For most currently listed homes, buyers are firmly in the driver’s seat during negotiations.
While there are limits to what is possible, it is common for us to be able to negotiate with sellers on both the asking price and terms.
The home in this video is an example of that.
We were not only able to negotiate a reduction in the sale price, but we were also able to negotiate a considerable seller credit towards my client's closing costs, which they will use to do a 2-1 buydown of the interest rate on their loan.
This buydown will lower their interest rate by 2% in the first year and 1% in the second year. In the third year, the competitive fixed rate will kick in for the remaining term of the loan.
There are other buydown options available for different periods, including for the life of the loan.
It is refreshing to now have the leverage in negotiations to request something like this, which would have been nearly impossible a year ago when the market was lopsided in the seller's favor.
This tool can actually be a good option for sellers too. The impact a buydown will have on a buyer's monthly payment and purchasing power is typically much higher than a price reduction for the same amount.
If you have questions about buydowns, or if you would like to discuss how we can negotiate a great deal as well, let me know.
I’m always happy to help.
Posted by Patrick Hake on