Higher interest rates are definitely impacting your buyers' qualifications if you have not noticed. The higher rates are also beginning the "price drops " trend, which sellers try to use to create more activity and affordability for buyers. In this market especially, Buyers and Sellers BOTH want to walk away knowing they got a great deal, and that's exactly what this permanent rate buydown strategy accomplishes. It will help you earn more appreciative clients, as you serve them best.
Most sellers and many listing agents don't know or can't show the actual numbers on how price versus buydown actually impacts buyers. This inability to show the numbers and knowledge of how dropping the rates has a more significant impact on a buyer's payment than lowering a sales price could ever have is creating situations where buyers and sellers COULD HAVE gotten better deals and put themselves in better financial positions. Honestly when both parties understand this concept, it's extremely rewarding and we have a system to educate them / bring them up to speed quickly, so it doesn't create lag or any difficulties for you explaining, etc.
The biggest advantage I think 2022 Buyers have are: 1. Way less competition on offers, 2. Sellers (and Listing Agents) are way more willing to work with you., 3. Sellers are paying costs again, which allows for the creative financing strategies included in this presentation page!
Price vs. Rate -
Did you know that a PRICE DROP of 30k has the same benefits as a 10k SBD to a buyer's payment? So, if that is the case, then we can leave 20k on the seller's net sheet vs. taking 30k off of it to address affordability issues with buyers. In addition, the buydowns that help buyers the most are so deep that they could not do it any other way other than with the seller's help. It's truly a win-win.
Permanent Seller Buy Down Offer Strategy -
I wanted to show you how a permanent Seller Buydown works in the real world and how both the Buyer & Seller can benefit. Real World examples (analysis with video explanations) for different sales prices are linked up here in this presentation.
Temporary Buydown Strategy - this is another great tool to get your Buyer an amazing deal in a rising rate environment. The benefits of lower rate payments for the first two years of the loan with the peace of mind of knowing exactly what your long term rate looks like if rates don't drop lower here for a refinance in the next 12-24 months!
This is just an incredible tool to get a great deal for a Buyer, and such an awesome way to develop an actual strategy that works to get them a payment that's HUNDREDS of dollars lower than it would have been if they had worked with another Agent unwilling to take the time to explain. To feel comfortable WITH a deal we have to feel like we ARE GETTING a great deal. This definitely achieves that goal. This strategy, if nothing else, creates extreme gratitude, loyalty, and referrals from happy clients.
Marketing Your Property:
Now that you understand how powerful a tool it is to reduce rate vs. price with the Seller Buy Down, then let's market your property with a custom Permanent Seller Buydown Video from me so that we can spread and help affordability to all buyers. In addition, isn't this a better conversation to have instead of a price drop discussion? Also, how cool would it be to share this strategy at a listing appointment? We can help with all of that by arming you with a video that is specific to your seller or potential seller - our Partners who are using this now absolutely love it.
As always, I'm here to help however I can. I love working with home buyers and am confident that my organizational and operational structure as a local mortgage brokerage gives everyone who works with me an outrageous competetive advantage. This link is shareable so if you know of anyone who needs to check this out please forward it to them. Let me know how I can help!