How to Sell Your Home in a Softening Market?
All good things come to an end. What a few months difference could make? The Pandemic Housing Boom has come and gone. Today’s Seller’s market in the real estate industry is much more challenging and competitive. Here are some tools Sellers could use to give them a competitive advantage:
Think Price and Product (P&P)
A house is only worth what someone is willing to pay for it. Every market in the United States is unique. Therefore, hire a Listing Agent that knows your individual market. You will want to hire a real estate agent that knows how to run comps, CMA’s, and analyze the market and its trends. Seller’s need to know that even though a house on their street 5 months ago sold for a particular price, it doesn’t mean that you will be able to sell your house for that much in today’s market. Those comps may very well no longer be valid or realistic in today’s market. Every house and every transaction should be treated on a case by case basis. Some sellers are guilty of living in the past and need to get caught up with today’s market trends. Other sellers are guilty of pricing themselves out of the game. Ideally, you want to price your house at a fair price to generate plenty of buzz, excitement, and foot traffic.
2/1 Temporary Mortgage Buydown
What is good for the goose is good for the gander. The same way the 2/1 Temporary Mortgage Buydown Program could benefit a Buyer, the same could be said for the Seller. This program incentives and enables Buyers to be able to purchase your house over others. The 2/1 Temporary Mortgage Buydown Program can benefit all parties involved. Keep in mind, only some select lenders have launched this new product to add confidence to today’s challenging and uncertain market. The 2/1 mortgage temporary buydown gives Buyers and homeowners access to potentially thousands of dollars in savings and a lower mortgage interest rate to allow them to qualify to purchase your house!!!
The way it works is as follows:
2-1 Temporary Buydown
- 2% lower interest rate in the first year
- 1% lower interest rate in the second year
1-0 Temporary Buydown
- 1% lower interest rate in the first year
The 2/1 temporary mortgage buydown is for purchase loans, covering Fannie Mae, Freddie Mac, FHA and VA fixed-rate mortgages. It is funded by an escrow account carrying a credit balance, which can be contributed to by the seller or even a realtor. The 2/1 temporary buydown is a great product option to help provide buyer’s relief and afford the house of their choice.