Reverse Rising Interest Rates with Seller Concessions

Getting interest rates lower for a faster, easier home sale

REAL ESTATE NEWS (Los Angeles, CA) — Interest rates are going up, but here are some excellent solutions. Seller carry financing, seller mortgage rate buy-downs and other seller concessions can make it easier and more affordable to buy a home. Turn high interest rates upside down! Sellers are providing more help to buyers, with the help of some home loan professionals.

As the market slows down due higher interest rates, here is a quick bulletin to help buyers and sellers to get a property sold — even a non-warrantable condo listing! It starts with two powerful words: Seller Concessions. The Loft Blog knows of some local area mortgage professionals who have multiple loans locked this month at 4.99% for litigated condos. All of them have seller concessions, used to buy down the note rate from approximately 6.5% to 4.99%. Most are 3.00% concessions.

Here’s the math for a $600,000 property listing:

Scenario #1. Buyer and seller settle on a $585,000 price (a 3% price reduction) no concessions, and buyer gets a 30 year fixed mortgage at 6.5% (6.539% APR) 0 pts, on a $438,750 loan (25% down)

Payment is $2773 P&I and down payment is $146,250.

Scenario #2. Seller counters at full price with a 3% seller concession instead of 3% price reduction. Buyer gets a 30 year fixed mortgage at 4.99% (5.296% APR) with a 3% loan origination fee paid by the seller concession, on a $450,000 loan (25% down) Payment is $2413 P&I and down payment is $150,000.

Scenario #2 gets the deal done.

The buyer gets a rate of 4.99% and only has to put down $3750 more, AND, has a payment that is $360 less than Scenario #1. They make back the $3750 in 10.4 months with the reduced payments!!!

The best part is: It’s a wash for the seller, as they net the exact same amount.

PS. It works the same for single family homes too, with rates now back to 3.99%.

Experienced mortgage lenders say that this market will wash out many lenders and agents, but hard work and out-of-the-box thinking can make a home sale happen. New ways of financing are an absolute must to survive for prospective home buyers, sellers and investors.

Request a free report, and tell us about any desired transaction that might benefit from this winning combination of mortgage loan with seller rate buy-down. Fill out the online form:

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Home sale quicker with an interest rate buydown through seller concessions

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

Cooling Housing Markets in Las Vegas and Los Angeles Sellers Are Ready to Make a Deal

Cooling Housing Market Leads Sellers to make a deal.

Burr! It’s cold in here. The recent slow down in Downtown Los Angeles loft sales is showing up in the Las Vegas Desert Market of late. Higher inventroy and longer times on the market are common in both Los Angeles and Los Vegas.

Urban real estate cools. The Desert cools faster.

Desert areas’ real estate markets drop first. DTLA just finished cooling already during the virus hysteria of 2020/2021.

Las Vegas real estate market slows. News reports point out that the inventory has doubled in Los Vegas over this time last year. Sellers are more willing to negotiate.

Las Vegas inventory is shooting up. Expect longer selling times on the market, and fewer buyers.  Buyers who can be savy are likely to make a better deal.

See the full Story from Fox News in this link.

The interest rate for buying a loft is now around 6%. That means fewer buyers can qualify for the monthly payment. #interestrates #loftmortage

What sort of deal would you like to make now on a loft or home? Comment

Homebuyers and sellers: Get the answers you need. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

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SEARCH LOFTS FOR SALE Affordable | PopularLuxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Buyers: Don’t gamble on a home purchase. Get a coaching advantage.

Copyright © This free information provided courtesy L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com, Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. EAC22071302KT Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.