Sellers are giving concessions again!
Posted by Merrill Jencks on Saturday, November 5, 2022 at 2:37 PM
By Merrill Jencks / November 5, 2022
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Sellers are giving concessions again!
Now that the real estate market has seen that slowdown, we're seeing a very common trend where in which a seller is offering to give concessions which means they're saying hey you know what brings me this offer and I'll give you a $10,000 kickback to help cover your closing costs or to buy down your interest rate and I think that a lot of buyers that I speak to don't understand how this works. So I wanted to create a quick video on this. Basically, lenders say hey you know what the par rate is whatever it is, let's just say 5.5%, that's the rate that you would get today without paying any extra, you still have your standard closing costs but without paying extra money but they'll also say hey you know what if you gave us an extra $5,000 then we'll give you a 5.25% or if you gave us an extra $10,000 upfront we'll give you a 5% and sometimes that's worth it and sometimes it's not and I can help you analyze whether that is a good solution for you but we are working with a lot of clients who say you know what I really want to do that, I'd rather pay $10,000 upfront with the seller's money by the way in order to get my lower interest rate and that will make my house more affordable and I don't have to be so stressed out about how much higher the interest rate is. So, if that's something you'd like to learn more about the pros and cons of doing let me know and we can talk about whether it's a good solution for you.
What does this mean to you? If you're even a little bit interested in learning more about participating in the Phoenix housing market as a seller, buyer, or investor... you NEED to know this stuff! Or at least work with someone who is obsessed with the market stats. Reach out to me today so we can start working on making your real estate dreams a reality!
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