The housing market is starting to cool off. 20%+ home appreciation yearly is frankly unsustainable. The market today is not the same housing market that we’ve had for the past 3-5 years. Gone are the days that listings would have 20 offers in 2 days, half in cash, half over the asking price, waiving contingencies and appraisals.

The reality right now is that homes are staying on the market longer and due to the dramatic rise in interest rates, sellers are finding it harder to find buyers. On the flip side, buyers are seeing their buying power diminished, as higher interest rates mean less buying power. However, it’s not all doom and gloom! People are still buying homes in the Sunshine State, just at a slower rate.

 We at Chissell Mortgage Group have an excellent strategy that can help both the sellers get the listing prices they want, along with helping the buyers get their purchasing power back by lowering their interest rates. It’s called the Seller Buydown Strategy and it is a game changer in the current market. Here’s how it works:

Let’s say that you are a seller trying to sell your home for $500,000. It’s been on the market for a couple weeks with no action. Instead of lowering the sales price by $20,000 to $480,000, why not provide the buyers a $20,000 incentive that they can use to either lower their interest rate for the life of the loan and/or cover all or most of their closing costs? This ends up being a win-win for all parties involved! The seller gets the listing price that they wanted, the buyer ends up getting a better interest rate or reduced closing costs and the neighborhood gets an excellent market comparable for future sales! The one thing to keep in mind is that the home must appraise for that value. If you’d like a visual example, here are a few different scenarios: https://mcedge.tv/w4mag3

The only reason we aren’t seeing more seller buydown strategies in today’s market is because people do not know about it. So, our goal is to change that!

If you would like to have a free analysis or have questions about the seller buydown strategies, whether buying or selling a home, or any mortgage questions at all please call us at Chissell Mortgage Group at 727-376-6900.