The market shift and economic conditions have created quite a change in real estate supply and demand. Week by week buyers are gaining the upper hand and sellers are being forced to utilize different strategies (or maybe for the first time in awhile, a strategy at all) in order to get their home sold. The biggest issue at hand both slowing down the buyer demand and taking away the seller’s upper hand continues to be interest rates.
Higher rates drastically affect monthly payment. In order to achieve the same payment with a higher rate the purchase price would need to be tens, if not hundreds, of thousands of dollars less.
Even as we see sellers drop prices $25k-$50k or more the buyer sees the deal but still can’t achieve the payment they once could.
There is a solution! Instead of decreasing the price, what if we looked at buying down the interest rate. A seller’s dollar goes further when applied to a rate buy down vs. a price reduction. A buyer can achieve the payment that keeps them comfortable while not having to give in price point of home. It’s a solution that (with lender approval) may be a win for all!
Talk with your lender about what options are out there for your current buyers or what can be offered by your current sellers to set yourself apart and help you WIN for your clients in this changing market.