When you’re trying to sell your house, it can get frustrating to see it sit on the market for an extended number of days. Throw in high-interest rates, and you’ve got a formula discouraging homebuyers from making an offer on your home. Homebuyers are focused on a low monthly mortgage payment, and you can help. Let’s look at what you can do to maximize your profits as a home seller while offering clever financing options to the homebuyer. They'll be happy and so will you!
As a home seller, you may have had potential buyers visit your home for a showing or open house without receiving any offers. It’s very frustrating for a home seller who doesn’t want to lower the price of their home to attract more homebuyers. The solution? Talk to your real estate agent about paying closing costs and buying down points for the homebuyer. You’ll avoid having to lower the asking price for your home, and the buyer will get a lower interest rate and ultimately lower monthly mortgage payments.
- Keep homebuyers happy
- Sell your house in less time
- Maximize your profits as a home seller
- Receive more competitive offers on your home
As a home seller, you can buy discount points to thrill homebuyers while getting the sales price you want from your home. Discount points are fees paid to the lender to lower the interest rate on a mortgage. You may have heard of this as “buying down” the mortgage interest rate. When you buy down the interest rate for the person buying your home, you can save them thousands of dollars, making it easier for them to afford the payment on their upcoming mortgage.
Discount points are fees paid to the lender to lower the interest rate on a mortgage.
As the homeowner, you can expect to pay 1% of the home loan as one mortgage point when you buy down the interest rate for the buyer. If you paid for two mortgage points on a $250,000 loan, you would pay $5,000 at closing. The resulting interest rate for the homebuyer would drop from 7% to 6.50% thanks to you buying down the rate. The homebuyer will pay less per month on their mortgage and save $1,000s over the life of their mortgage.
As a home seller who wants to get the full asking price from the sale of their home and attract more homebuyers, talk to your real estate agent about buying down the interest rate for the homebuyer. When mortgage rates are high, homebuyers will welcome the opportunity to get a lower interest rate and save $1,000s over the life of their home loan. Your house might become the most sought-after home on the market!
For more information on selling your home, download Reazo's comprehensive guide: