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Rainmaker
686,151
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

There are many creative ways to incentivize a buyer. Closing Costs, Home Warranty, buying down rates!  Every little bit helps.  But first and foremost, price the property right! That is the Best Incentive to sell a house.

Sep 08, 2022 07:25 AM
Ambassador
3,601,036
Kathleen Daniels, Probate & Trust Real Estate Svcs.
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Pricing a property well should provide incentives to buyers. 

Sep 07, 2022 01:10 PM
Rainmaker
1,746,231
Thomas J. Nelson, REALTOR ® CRS,ABR,PSA,RCS-D, CFSP
Big Block LPT Realty 858.232.8722 - San Diego, CA
Coastal San Diego, Veteran's & Retirees Services

Not as much as properly pricing your property does!

Sep 07, 2022 11:57 AM
Ambassador
3,819,614
Anna "Banana" Kruchten
Retired Broker/Owner - Phoenix, AZ
602-380-4886

Yes it's happening in my area once again as it did quite awhile ago in the past. 

Sep 07, 2022 10:11 AM
Rainmaker
693,038
Jason E. Gordon
CrossCountry Mortgage, San Diego, CA - San Diego, CA
Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE

Absolutely! Many Borrowers are maxed out on their Debt-to-Income (DTI) ratios. As interest rates rise, the corresponding maximum loan amount & purchase prices erode for that Borrower/Buyer. Rather than dropping your sales price by $30-50K, why not have the Seller invest $8-10K in discount points to buy the rate (and corresponding DTI) down to accommodate the Buyer, while maximizing the net proceeds for the Seller? It's not a magic bullet, but it is a useful tool on a case-by-case basis.

Sep 08, 2022 06:47 AM
Rainmaker
981,461
Carla Freund
Keller Williams Legacy - Cary, NC
NC Realtor - Senior & Luxury 919-602-8489

For buyers who don't have the funds to buy down the rate themselves it may. 

Sep 08, 2022 04:29 AM
Ambassador
3,283,102
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I've never "bought" into buying the rate down.  Might make sense if you planned to live there for 25 to 30 years.

Sep 07, 2022 09:36 PM
Rainmaker
8,786,442
Roy Kelley
Retired - Gaithersburg, MD

Too complex for many purchasers. Price and the quality of the loan officer is are more important.

Sep 07, 2022 12:35 PM
Rainer
499,962
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

haven't seen sellers doing that, but I suspect "closing costs" will be back on the table soon.

Sep 07, 2022 11:29 AM
Rainmaker
6,060,142
Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

Price the property right and let the buyer arrange for the financing. I agree with Kathleen Daniels, Probate & Trust Specialist. 

Sep 08, 2022 04:05 AM
Ambassador
7,300,947
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I doubt it, most buyers want a home, their dream home, beyond that a few points are not going to matter.

Sep 08, 2022 12:21 AM
Rainmaker
2,828,783
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

It is not an incentive offered here Peter Mohylsky. BRIX REALTY and I'm not even sure I understand... a Realtor offering points? How does that work?

Sep 07, 2022 01:16 PM
Rainmaker
3,024,704
Richie & You
pearlsforthesoul.com - Riverside, CA
Author & Consultant

Yes to this decent question...do they?

Sep 07, 2022 11:32 AM
Rainmaker
1,679,182
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

We are hearing a lot about rate buy-downs. It is a negotiating tool that is new to many in this market. As has been mentioned, a payment by the seller (a credit towards closing costs of a few thousand dollars) may be a better strategy that simply reducing the sale price.

Sep 09, 2022 07:04 AM
Rainmaker
3,418,088
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

They do, however i find many buyers confused by it. I am working on finding loan officers who will take the time to go over a little better with the buyers

Sep 09, 2022 06:05 AM
Rainmaker
1,179,107
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I have never in my area seen sellers paying for buyer's discount points! Just price the property right and let the lender and buyer work their end out!

Sep 08, 2022 07:47 AM
Rainmaker
1,901,186
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Used to but I don't think until the market slows more that it will help. 

Sep 08, 2022 06:38 AM
Rainmaker
2,300,448
Michael J. Perry
Fathom Realty - Lancaster, PA
Lancaster, PA Relo Specialist

I think it just helps them have lower Mortgage Pmts .

Sep 10, 2022 05:40 AM
Rainmaker
6,499,019
Joan Cox, Retired Broker/Owner
Denver, CO
Enjoying Every Day to Its Fullest!

We are seeing many creative ways to get a home sold, but many are offering $10k to buy down a rate.

Sep 10, 2022 05:37 AM
Rainmaker
1,513,583
Raymond E. Camp
Ontario, NY

Don't they get enough from the government?

Sep 09, 2022 08:31 AM
Ambassador
6,016,828
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

I would absolutely say it would, Peter. With the higher interest rates, that's a great way to help them achieve their home-buying goals.

Sep 12, 2022 05:02 AM
Rainer
29,231
Dave Skow
Movement Mortgage - Seattle, WA
Dave Skow

offering a seller credit can certianly  be more appealing to  a buyer  versus   dropping the  price 

Sep 19, 2022 02:46 PM
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