REAL ESTATE NEWS (Los Angeles, CA) — Are you worried about sky-high interest rates hampering your ability to sell your property in the current market? Do you hear potential buyers express concerns about the future of mortgage interest rates? If so, a strategy you might want to consider is the 2-1 or 3-2-1 Rate Buy-down program. This is a win-win for both sellers and buyers, making the first few years of mortgage payments more manageable for the buyer, while enabling the seller to close the deal more efficiently.
The Problem of Increasing Interest Rates
The issue of rising interest rates is a thorn in the side of both home buyers and sellers. For buyers, increased rates translate to higher monthly mortgage payments, potentially pushing their dream home out of financial reach. This can discourage them from entering the market, thereby shrinking the pool of eligible buyers for your property. For sellers, higher rates can elongate the selling process, as fewer buyers are willing or able to commit. Additionally, higher interest rates can potentially lower property values, making it harder for sellers to achieve their desired sales price. The overarching problem here is that increasing interest rates create a more challenging and uncertain environment for real estate transactions, hindering the liquidity and vitality of the housing market.
What is a Rate Buydown?
A rate buy-down is a financial arrangement where the seller agrees to subsidize the buyer’s mortgage rate for the first few years. This effectively reduces the buyer’s initial mortgage payments, making it easier for them to manage costs early on.
In the real estate market, 2-1 and 3-2-1 Buydown programs are options that allow for a gradual increase in mortgage interest rates over a period of two or three years, respectively. In a 2-1 Buydown, the interest rate is initially reduced by 2% in the first year and then increases by 1% in the second year, reverting to the original Note rate from the third year onward. In a 3-2-1 Buydown, the rate is reduced by 3% in the first year, increases by 1% in the second year, and by another 1% in the third year, before reverting to the original Note rate from the fourth year. These programs are beneficial for easing buyers into the mortgage with lower initial payments, particularly useful in a high-interest rate environment or for those expecting an income increase in the future.
It’s important to note that the specifics of these reductions and increases can vary by lender and program. Some lenders may offer different structures, like a 1-0-0 Buydown, where the rate decreases by 1% for the first year and reverts to the original rate thereafter. The exact terms are specified in the buydown agreement, and it’s crucial for both buyers and sellers to fully understand these terms before finalizing a deal. Consulting with mortgage advisors for a comprehensive understanding is advised.
Should I Choose a 2-1 or 3-2-1 Buy Down?
The popularity of a 2-1 versus a 3-2-1 rate buydown can vary depending on several factors such as market conditions, buyer preferences, and lender offerings. However, the 2-1 buydown is generally more common and widely used. This is primarily because it offers a simpler structure, with the interest rate being reduced for just the first two years of the loan. This makes it easier for both buyers and sellers to understand and calculate the benefits.
The 3-2-1 rate buydown, while offering a more extended period of reduced interest, tends to be less common because it’s more complex and involves a longer commitment from the seller in terms of subsidizing the interest rate. It may also be more expensive upfront for the seller, which could be a deterrent.
While both options have their merits, the 2-1 rate buydown is generally more popular due to its simplicity, lower upfront cost, and shorter duration of commitment. However, depending on the specific needs of the buyer and the market conditions, a 3-2-1 rate buydown could be an attractive option worth considering.
How Does It Work?
Let’s consider a hypothetical scenario based on a $1,200,000 home sale price, assuming a 20% down payment. With a Note rate of 6.875%, the mortgage payment (principal and interest) would typically be $6,306.52.
For a 2-1 Buydown: First year: The payment is based on an interest rate that is 2% lower than the Note rate, lowering the payment to $5,080.40. Second year: The payment is based on an interest rate that is 1% lower than the Note rate, making it $5,678.76. After the second year: Payments revert back to the original Note rate. Important Points to Consider: Seller Pays for Buydown: The buyer is not allowed to pay for the buydown. It’s the seller’s responsibility, so you should make it part of your selling offer. Unused Monies: Any funds that remain unused are credited towards the balance of the loan when it’s paid off. For instance, if the buyer refinances after 12 months, the mortgage balance will be reduced by the unused monies. Total Cost: The overall cost of the buydown is the gap between the actual payment and the payment required to be made by the buyer. This is not a lender fee but prepaid interest. Why This Makes Sense Right Now
The mortgage industry believes such programs are beneficial, especially considering that future mortgage rates are expected to be lower. The anticipation is that buyers will be able to refinance within the next two years at a more favorable 30-year fixed rate.
For sellers, offering a rate buydown not only makes your property more attractive but also addresses a significant concern buyers currently have with fluctuating mortgage rates. By reducing the buyer’s initial financial burden, you’re essentially creating a smoother path to closing the sale.
Take Action Now for a Smoother Sale and Happier Buyers
Don’t let the fear of high interest rates put a damper on your selling prospects. Offering a 2-1 or 3-2-1 rate buy down could be the game-changer that sets your property apart in a crowded market. Here’s how you can get started:
Consult Your Mortgage Advisor: Discuss the feasibility and advantages of incorporating a rate buydown into your selling strategy. Get the free report. Update Your Listing: Make sure to highlight the buydown option in your property listing to attract more potential buyers. Communicate the Benefits: During showings or open houses, educate prospective buyers on how the buydown will make their initial years of homeownership more manageable. Request a Free Report: For a tailored strategy, don’t hesitate to request a free report that details how a rate buydown can benefit your specific sale. Close the Deal: With reduced mortgage payments in the first couple of years, you’re offering buyers a tremendous incentive that can expedite the closing process.
By taking these steps, you’re not just selling a home; you’re offering financial relief in an uncertain market. So, act now! Reach out to your mortgage advisor to discuss rate buydown options and integrate this powerful tool into your real estate toolkit. Your future self—and your satisfied clients—will thank you.
Want to find out how this could work for your specific selling scenario? Request a free report today to explore your options.
Get a free report on 3-2-1 and 2-1 seller mortgage buy-downs solution for helping buyers obtain lower mortgage interest rates. Fill out the online form:
Thank you for taking a look at this collection of important information about the sale of your home. For most people, the sale of their home is one of the five most important financial transactions of their entire life. All real estate agents are definitely NOT the same, so you want to select the one you trust to handle the sale of your home most carefully. The information I have provided can help you do that. Please do NOT hire an agent until you have read the enclosed material.
In the last 12 years, I have helped numbers of people with their Real Estate transactions. Many have come to me only after having horrible experiences, false starts, and long delays. I would like for you to avoid all the frequently made mistakes and enjoy the End of smooth experience that occurs when working with a true professional.
For some people, selling their home is a natural life milestone to be celebrated. For others, the sale may be motivated by a career move or transfer, a change in finances, or something else not of their choice, so the sale of the family home is a difficult decision. Either way, you simply do not need added stress of promises not kept, confu.sion, unnecessarily large numbers of unqualified “lookers” marching through your home at all hours, and pricing and presentation mistakes made that cost you tens of thousands of dollars. The information I’ve sent can help you avoid all of this.
I look forward to hearing from you and to being of service.
List of information enclosed here: 4 The Biggest Mistake a Homeowner Can Make When Interviewing Agents 6 Real Estate Agent Selection Factors 9 Your Personal Shortlist and 13 Key Questions to Ask Agents 10 Top 4 Mistakes to Avoid 13 Facts and Answers to Selection Criteria 14 About the Exclusive Chambers Citywide Buyers’ Network 16 Who Hires The Chambers Team? 18 Warning & Shocking Fact All Homeowners Should Know Al:Knit 20 The Chambers Team — 6 Satisfaction Guarantees 22 Who Will Write the Ad That Sells Your House? 24 Prestige Real Estate Marketing Plan
The Biggest Mistake a Homeowner Can Make when Interviewing Agents…
There is a lot of questionable advice out there from “personal finance experts” on TV or from friends and family. They tell you, “Interview 3 or 4 or 5 agents. then pith one.” When somebody tells me that, what they,e going to do, I ask: “What criteria are you going to use to compare them, judge them, and pick oner Many admit that they don, know. They are going to spend 3, 4, or 5 evenings interviewing different real estate agents with no pre-determined way to pick the one they will ultimately trust to handle one of the biggest and most important financial events of their life!
Let me give you a comparison you may or may not know. When a company decides to hire somebody for an important job, let’s say one that costs the company $100.000.00 or $200,000.00 a year, they have a pre-determined set of questions – a set criteria they will use to judge the people they interview. They know in advance what they are looking for. To do otherwise is to play ‘Blind Archery’. and that’s dangerous! They NEVER interview 2 bunch of people and go with the one they “like”. Or rely on, “He or she seemed nice, No, they use reason and logic. You are hiring somebody to do a very important job You should NOT play ‘Blind Archery.’
You need to know in advance he kind of agent you want, the things that are most important to you, the sm. questions to ask. For example. is the agent, track record at getting top dollar more or less important to you than the commission they quote you? Is the fact that they are a lone wolf and may be constantly and immediately accessible to you more important than their success percentage or the percentage of homes they list that actually sell? And on and on. In the following page, you will read through a fist of different “Selection Factors” to consider and weight against each other. From this list, you can make your own “Short List,” in the space provided, of the five most important things you are looking for from the agent you will hire. You also find my Facts and Answers to all of di.e Selection Factors, in abbreviated form, of course. Also included, is a list of the Top 4 Mistakes Most Commonly Made when choosing an agent. The most frequent r.ults of th.e mistakes are: the home never sells, is tied up for months, and eventually the agent is fired. The home is sold for much le. than it should have sold for, because the owner is stuck with an under-performing agent, is worn out, and just wants to get it over with.
To Get Your Home Sold, Call The Chambers Team at (213) 880-9910 Your Home Sold Guaranteed or I’ll Buy It. Call Corey Chambers for Details Today!
Your Guide to a Fast Sale For Top Dollar
Real Estate Agent Selection Factors
WARNING: Not all of these criteria will leave you with the most money in your pocket. Some of them are, quite frankly, common Seller traps. Read on for more information.
Rank each item, 1-8 (1 = Not Important To You; 8 = Very Important to You) Not Important Very Important
1 Must have strong marketing systems that will help my home stand out ys. other homes on the market.
2 must have a well thought out list price for my home that reflects current market conditions and the prices of comparable homes in my area.
3 Must have a proven track record of selling homes.
4 Must have a proven system for attracting buyers.
5 Must be able to demonstrate to me how I will NET the most amount of money possible on my home sale (i.e. how I will end up with the most money in my pocket).
6 Must demonstrate that my listing is important and explain the systems they employ to ensure that I receive regular feedback and updates.
7 Must quote me the highest list price. Must quote me the lowest commission. Must be likable and friendly; I must “feel” good about them.
Your Home Sold Guaranteed To Get Your Home Sold, or I’ll Buy It•
From the Selection Factors on the previous page, make note of the five that are most IMPORTANT to you, starting with the MOST IMPORTANT. 1 2 3 4 5
13 Key Questions to Ask Agents
1 How long have you been an active, full-time real estate agent? 2 How many homes have you listed in the last 6 months? The past year? 3 How many homes have you sold in the last 6 months? The past year? 4 What’s the average amount of time one of your listings is on the market before it sell, 5 How does your average sale price compare to the original list price? 6 How will you market my property? 7 How ma, homes are you currently marketing? more al managing m, lig., A. a km nrrrirnad Amp, 8 What can you tell me about your share of the marketplace compared to other agents in the area? 9 Do you have a Team? How many are licensed? 10 How will you attract buyers to my property? 11 How many buyers are you currently working with? 12 How will you make sure my needs are attended to? 13 Do you utilize a professional transaction coordinator to ensure a smooth closing? To Get Your Home Sold, Your Home Sold Guaranteed Call The Chambers Team at (213) 880-9910 Call Corey Chambers for Details Today,
Top 4 Mistakes to AVOID
1 Going with the agent who promises you the the most amount of money (even if the price seems unrealistic) 2 Choosing the agent who promises to save you more: the commission rate 3 Choosing the “nice” agent 4 Choosing an agent who works alone, because you think they’ll work a lot harder and give you more personal attention
The Most Frequent Results of These Mistakes Are …
1 The inflated list price you were quoted (in order to get your listing) results in few buyers coming to view your home (because they can gee a comparable, properly priced house for less money) and you end up having to endure a series of price reductions which result in your home filially selling for BELOW its true market value. 2 A lower commission does not guarantee you will net more on your home sale. According to Real Estate consultant Bernice Ross, there is a “Big Lie” in real estate. It’s the lie that reducing the commission always results in more money for the seller. Nothing could be further from the truth. Virtually all sellers want to obtain the highest price possible for their property. No matter what you are selling, maximum exposure to the marketplace is a critical factor in achieving the highest price possible. Companies who cut services in exchange for taking a lower commission often cost clients much more than the extra one to three percent they save in commission. Depending on pricc, the cost can be tens of thousands of dollars. 3 Your agent may be nice, but this doesn’t necessarily qualify them to do the best job of selling your home. Your agent’s personality will mean very little to you if you ultimately discover that they don’t have the marketing expertise to market your home properly so it sits on the market and either doesn’t sell, or sells for lower than market value. (The Chambers Team members are all great to work with AND we have a proven system to get your home sold Fast and for Top Dollar.) 4 Your agent ends up neglecting some important steps, because they are so over-busy trying to do everything all on their own (and you end up with an inferior result).
Your Guide to a Fast Sale For Top Dollar
Facts and Answers to Selection Criteria
Your Home Sold Guaranteed or I’ll Buy It*
Fact: There is no substitute for proven, aggressive and effective marketing on your home. Effective marketing calls out to the buyers most qualified to buy your home. The right marketing on your home will say the right things, be in the right place at the right time, and compel qualified buyers to pick up the phone to find out more. The process of attracting buyers to your home cannot be left to chance. The exact words used to promote your home are critical. Our advertising is so effective that, at any one time, we are working with a database of over 4,359 qualified buyers. Fact: According to published Real Estate consultant Bernice Ross, a lower commission does not guarantee you will net more on your home sale. There is a Big Lie in real estate. It’s the lie that reducing the commission always results in more money for the seller. Nothing could be further from the truth. Virtually all sellers want to obtain the highest price possible for their property. No matter what you are selling, maximum exposure to the marketplace is the critical factor in achieving the highest price possible. Companies and agents, who cut services in exchange for taking a lower commission, often cost clients much more than the extra one to three percent they save in commission. Depending on price, the cost can be tens of thousands of dollars. Fact: There s a big difference between just selling your home, and getting your home sold ‘right’. There are many things to do to get your home sold for the best possible result. An agent who operates all by themselves really has to hussle to make it all happen the way it should, and it’s tough for a lone wolf’ when he/she is juggling more than one listing. Important details sometimes fall through the cracks. I know this from experience because 1 used to operate on my own. But just as doctors, lawyers and other profcmionals hire assistants to handle the small but important details that do not require their expertise, I gathered a highly talented and knowledgeable Team to ensure that you are always our top priority, that we are never too busy to address your need, and no details are overlooked. Fact: listing a home for on unrealistically high price almost always results in an unrealistically low selling price the price a home sells for is subject to the law of supply and demand. When a home is priced too high vs. comparable homes in the area, prospective buyers won’t bother to view it. Why? Because they are able to view homes with similar features that are listed for a lower price. As a result, the home that is listed too high sits on the market fora long time causing prospective buyers to assume there is something wrong with it. In order to get things moving a price reduction is often required, and in the end, the home can end up selling for much less than it would have if it had been priced correctly in the first place.
Who Hires the Chambers Team? In general, here are the people who most frequently hire The Chambers Team and Why…
CEO’s, Executives Business Owners Why? Because they run their businesses as “Teams,” so they understand and appreciate The Chambers Team System. These people are accustomed to bringing people who play different, specialized roles together as a team, and know that to be the most productive approach to complex situations — rather than having one person trying to juggle all the balls, wear all the hats. They know from their own experience that no one person can be good at everything.
Sales Professionals & Marketing-Oriented Entrepreneurs Why? They quickly recognize the benefits of The Chambers Team’s sophisticated System for selling homes as quickly as possible & for top dollar. They have the background and experience
to understand the power of the multi-media, multi-step System that Corey Chambers has perfected. They respect the fact that Corey pays to use Craig Proctor’s marketing System, and to be trained and coached by Craig — including 400 + top producers, including several Thy 10 Agents from major franchises! They see, quite simply, that The Chambers Team does more things simultaneously to get their home sold.
Doctors, Hospital Administrators & Nurses Why? Like the cxecutives, they are thoroughly familiar with the benefits of a Team Approach. It is the way they work all the time. Exceptionally Busy People Why? Because The Chambers Team’s System features methods of marketing and selling their home that minimizes their involvement
and inconvenience. For example we rarely hold a traditional “Open House.” That’s because agents tend to use your home to find buyers to work with. Those buyers rarely buy the open house they come to. We find buyer’s without displacing our clients for bag Saturday and Sunday open houses. Our preselection and quail ,ing process reduces the number of people who troop in and out of the home with no real interest in it or ability to buy it immediately. People Who Are Not Real Estate Investors or Experts Why? Most successful people have become expert in what they do, in their occupation, profession or business. They have not had the time or inclination to also become expert in finance, investments, real estate and real estate law. They do not want a “rookie” or a part time “dabble’ handling one of the most significant Financial transactions of their lives They want someone supervising every aspect of the sale of their home that is a leading authority and globally recognized expert with many years of successful experience. In short, they want the best person they can get. People Who Do Not Have Time for “Do-Overs” Why? Corey tends to attract the client who wants it done right the first time. That’s because Corey sells 98% of the homes he lists — compared to the MIS average success rate of around 84%. If you hire the wrong agent, after weeks or even months go by without your home being sold, you have to start all over again with a new agent Many sellers go through these three times before getting their home finally sold – and then they tend to compromise their price severely. The homeowner who is determined to get it right the first time compares Corey’s track word to others, and makes the obvious choice.
WARNING & SHOCKINC: FACT 72% of ALL Home Sellers DO NOT Go Back to the Some Real Estate Agent to do Another Transaction!
① Poor communication ② Over-promised, under—delivered results ③ Promised a selling price far from reality ④ Promised speed of sale far from reality ⑤ Were less experienced than they presented themselves to be ⑥ Wasted a lot of time showing the home to unqualified possible buyers ⑦ Left out a critical detail ⑧ Lack of professionalism ⑨ Hard to get a hold of ⑩ Didn’t market my home properly ⑪ Never showed my home ⑫ Too pushy ⑬ Did not help stage my home for sale ⑭ Didn’t keep in touch/no feedback ⑮ Lack of representation ⑯ Poor negotiating skills ⑰ Sold my home for low price ⑱ Too busy ⑲ My home did not sell ⑳ Didn’t do anything I couldn’t have done myself
Well, our most recent Client Survey shows that 96% of our clients say they WOULD come back to The Chambers Team! Here’s why!
“Corey Chambers helped us to sell our home for 101% of asking price, all cash, 24% faster than the average sale in the building. Corey then helped us to find a larger home and to negotiate a fair price with repairs included. He was very responsive to calls and if he didn’t know the answer to a question that we had, he always found the answer out in a timely manner. We plan to use Corey again in future real estate transactions and highly recommend him to others.” — Tammy Johnson and Mike Barker
‘‘Corey is the best realtor I have worked with by far. He is the most intelligent, intuitive, resourceful and creative realtor I have ever encountered. I will recommend him to everyone I know without any hesitation. He has been so patient with me which I really appreciate and has always listened to me. He had real conversations with me weighing the pros and cons of different options. He never once lost patience or got frustrated. I am so happy to have found Corey.” – Lauren Han
How does The Chambers Team Get a 96% Satisfaction Rate? See the next page for our Exclusive Six Point Satisfaction Guarantees!
The following text has been updated with newer information:
Six Point 100% Satisfaction Guarantees REALTY SOURCE Chambers Team
COMMUNICATION GUARANTEE: Because you have the entire Chambers Team working for you. The primary agent responsible for the sale of your home will either be immediately accessible to you via cell phone, or will return any of your calls within 24 hours, but usually the same day. You will not need to chase us to know what’s going on. We will, without your asking, give you an update every week on the progress and status of the marketing and sale of your property. GUARANTEE: If we fail to update you weekly or fail to return your call within 24 hours, we will give you a $200 cash credit at closing*.
HONEST PROMISES GUARANTEE: Guarantee #1 is a good example. We are not going to wildly promise you the moon and stars to get your business. We tell you what we can and will do exactly how we operate, as well as what we will not do, upfront, in clear language. When we list your home, we give you a detailed, professional service agreement in writing. GUARANTEE: If, at any time, we fail to honor that agreement, we will give you a $200 cash credit at closing*.
REALITY-BASED SELLING PRICE RANGE: We get you top dollar. Our track record and statistics prove it. But, we will never play the ‘bait-and-switch’ game of promising to get you a wholly unrealistic price just to get your listing, wearing you down with low-ball offers. Unfortunately, this goes on in the real estate business! GUARANTEE: For every 5,000 we sell your home for, below the agreed-upon price range, we will give you a $200 cash credit* (up to a maximum of $600) at closing. We will also buy your home for a pre-agreed price at any time you like*.
REALITY BASED TIMETABLE: We implement a complete marketing program to sell your home. You know in advance what will occur step by step, and will receive weekly marketing updates. We set a target range for the timing of the successful sale of your home. In many cases, we will sell your home faster. GUARANTEE: If we fail to present an offer on your home within 29 days, we will give you a $200 cash credit for each week after that dash up to a maximum of $1,000 – at asterisk. We will also by your home for a pre-agreed at any time you like*.
HONEST PRESENTATION OF EXPERIENCE AND TRACK RECORD: Everything stated about The Chambers Team throughout these materials is an accurate, factual presentation, fully supported by documentation, provided on request. GUARANTEE: If you can demonstrate that any of these statements of statistics is false, The Chambers Team will donate $400 to the charity of your choice after closing.
QUALIFIED BUYERS GUARANTEE: Nothing inconveniences a seller more than being kicked out of their home during the showing process, or accepting an offer on their home only to discover, weeks later, that the buyer cannot secure their home loan. The resulting loss of time and the distress a seller feels can be a crushing economic and emotional blow: GUARANTEE: If we ever show your home to a buyer who later tells us that they cannot afford your home, we will give you a $400 cash credit at closing.
Who Will Write the Ad That Sells Your Home? Words Matter. Corey Chambers has written hundreds of real estate ads. Craig Proctor, our Real Estate Mentor and Coach, has written more than 100,000 real estate ads. Corey Chambers has paid thousands of dollars for the privilege of using those ads and learning how to write ads and other material, to present properties in the best light possible. And Corey personally writes or approves every ad, every flyer, and every website for every property — including yours. Consider this simple example: Backyard With Mountain View There is one letter — not even a word — one letter that makes a significant difference. Further, there are over 100 descriptive words to choose from, to put in front of Mountain Views. Tranquil Mountain Views; Private Mountain Views; Breathtaking Mountain Views
Different descriptive words attract different types of buyers, prepared to pay different prices. There is a SCIENCE to this, perfected by Craig Proctor over 18 years, over 8,000 transaction, over One-Billion in total homes sold.
The Word Wizards Behind The Curtain
Corey Chambers and The Chambers Team members have invested tens of thousands of dollars learning ad creation from one of the best copywriters in North America. Only a very small percentage of agents have invested in teaming advertising strategies and obtaining licensing rights to use exclusive copy. Just one letter can make a difference!
To Get Your Home Sold, Call The Chambers Team at (213) 880-9910 — Your Home Sold Guaranteed or I’ll Buy It. Cal! Corey Chambers for Details Today!
Did you find this handbook helpful helpful? Get the next free home seller’s guide. It includes:
THE HOUSING MARKET FORECAST WHAT TO EXPECT WHEN SELLING YOUR HOUSE PICK THE PERFECT PARTNER 5 Reasons To Sell This Winter Home Prices Over The Last Year 26% Of Homes With A Mortgage Are Now Equity Rich! How A Lack Of Listings Impacts The Market Dispelling The Myth About Home Affordability Buyer Demand Continues To Outpace Inventory Of Homes For Sale Have You Outgrown Your Starter Home? 2 Factors To Watch In Today’s Real Estate Market What Does The Future Hold For Home Prices? Where Are Interest Rates Headed? Home Sales Expected To Increase In 2019 The Role Access Plays In Getting Your House Sold! How To Get The Most Money From The Sale Of Your Home 5 Reasons You Shouldn’t For Sale By Owner The Importance Of Using An Agent When Selling Your Home Two Things You Don’t Need To Hear From Your Listing Agent
Get the next free homeseller’s guide. Fill out the online form:
