How Can You Sell Your House for More with a BUYDOWN?
There are several different marketing strategies that your listing agent should try in order to get more exposure for your property. Your listing agent should want to get the most money possible for your house but they should also want to get the house under contract and closed as soon as possible. Time is money for buyers and sellers.
All sellers have heard the same thing from every agent..."the house needs more web exposure" or "the house needs to be decluttered/painted"....here is an idea that can produce an offer for you house while benefiting both the buyer and seller.
HERE IS HOW THE BUYDOWN CAN HELP
Lets say your house is listed for $200,000 and the buyer is going to put down 20%. With today's interest rate of 5%, the monthly payment would be $859. This is the perfect scenario because the house is selling for asking price.
Now what if the house sells for $190,000??? (the buyer is still putting 20% down with a 5% interest rate)
The seller has lost $10,000 by dropping the price and the buyer's monthly payment has fallen to $816. It seems crazy that the seller would drop the price $10,000 to save the buyer $43/month.
The house can close for $200,000 and benefit both the buyer and the seller. If the seller spends $5,000 to buydown the buyer's interest rate to say 4.25% then the buyer's monthly payment will drop even more to $787/month. This is great for the buyer because their monthly payment is lower and because when they go to sell the house it will look like they paid $200,000. It is great for the seller because the buydown saved him $5,000 and it was able to make his property affordable to more buyers.
IF YOU ARE IN A POSITION WHERE YOU NEED TO SELL FOR A CERTAIN AMOUNT...YOU MAY WANT TO CONSIDER OFFERING A BUYDOWN TO TODAY'S BUYERS.