The chart shown doesn’t match the scenario below)<\/em><\/p>\nHere’s a scenario designed to meet both the buyers’ and sellers’ objectives:<\/p>\n
The property is listed at $300,000; an offer comes in at $283,000.\u00a0 One of the most important benefits of the lower price, to the buyer, is the lower mortgage payment.\u00a0 An 80% loan on $300,000 (at 5.25%) would yield a P&I mortgage payment of $1,325.\u00a0 Lowering the price to $283,000, would lower the loan to $224,000 and the payment to $1250\/month.<\/p>\n
Consider a mortgage rate buy-down as the counter-offer.<\/strong> For two discount points (about $4800), the seller could reduce the rate to 4.75% and the payment to $1251.\u00a0 The buyer gets the payment he wants and the mortgage rate buy-down strategy saves the seller some $12,200.<\/p>\n","protected":false},"excerpt":{"rendered":"Listing agents, considering offers might advise their sellers to counter-offer with a mortgage rate buy-down strategy rather than to reduce the sales price. We like to help our agents with charts from our Mortgage Lens program.\u00a0 The chart helps to illustrate the power of leverage, to both the seller and buyer, and gives us a […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,5],"tags":[],"class_list":{"0":"post-9259","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":12916,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12916\/master-seller-financing-to-beat-the-mortgage-market-freeze-of-2011\/","url_meta":{"origin":9259,"position":0},"title":"Master Seller-Financing To Beat The Mortgage Market Freeze of 2011","author":"Brian Brady","date":"August 17, 2010","format":false,"excerpt":"I'm not so sure I want to play hockey against Bryant Tutas.\u00a0 He thinks like Wayne Gretsky. I cautioned about the coming mortgage freeze and asked what agents might do to prepare for it.\u00a0 I'm a mortgage guy so I think in terms of institutional financing.\u00a0 I completely forgot about\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7903,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7903\/fha-and-va-assumable-loans-offer-an-exit-strategy-for-todays-buyers\/","url_meta":{"origin":9259,"position":1},"title":"FHA and VA Assumable Loans Offer an Exit Strategy For Today’s Buyers","author":"Brian Brady","date":"April 16, 2009","format":false,"excerpt":"How can an FHA mortgage or VA home loan sell a home faster?\u00a0\u00a0 When mortgage rates are 10% and the 5% government loan is assumable. I've taken a few pokes at the contributors on Active Rain; John MacArthur isn't one of them.\u00a0 John is a Branch Manager with Long and\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18706,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18706\/dont-drop-that-listing-price-just-yet\/","url_meta":{"origin":9259,"position":2},"title":"Don’t drop that listing price just yet!","author":"Brian Brady","date":"May 6, 2022","format":false,"excerpt":"Southern California, agents are telling me that homebuyer enthusiasm has dropped quickly.\u00a0 More homes are on caravan and some are starting to reduce listing prices to get the home sold.\u00a0 Tampa Bay area agents are whispering the same.\u00a0 And while the US Home Price Index rose 2%, year over year,\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11760,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11760\/performance-bonds-for-real-estate-escrows\/","url_meta":{"origin":9259,"position":3},"title":"Performance Bonds For Real Estate Escrows","author":"Brian Brady","date":"April 23, 2010","format":false,"excerpt":"The world of distressed real estate (only about 90 of my past 100 transactions) is a funny one; all the rules are different. The REO sellers are pretty simple.\u00a0 They have a take it or leave it policy when it comes to negotiations, escrow terms, etc..\u00a0 Some short sellers however,\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3820,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3820\/theres-more-to-the-mortgage-relief-bill-than-just-mortgage-relief\/","url_meta":{"origin":9259,"position":4},"title":"There’s more to the mortgage relief bill than just mortgage relief","author":"Greg Swann","date":"August 9, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). Notes for insiders: The legislative thumbprint of the National Association of Realtors is churn. The NAR is not necessarily for or against any legislation. Instead, their lobbyists will look for ways to introduce short-term incentives to churn\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17943,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17943\/can-you-waive-an-appraisal-when-purchasing-with-a-va-mortgage\/","url_meta":{"origin":9259,"position":5},"title":"Can a veteran buyer waive an appraisal when purchasing with a VA mortgage?","author":"Brian Brady","date":"March 8, 2021","format":false,"excerpt":"Welcome to 2021 where offers are made above listing price and, to win the deal, the buyer waives the appraisal.\u00a0 When I was hired as a listing broker, I was able to get two of the offers to waive the appraisal by asking their respective lenders to run the desktop\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=9259"}],"version-history":[{"count":7,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9259\/revisions"}],"predecessor-version":[{"id":9267,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9259\/revisions\/9267"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=9259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=9259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=9259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"rate-buydown\"](\"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2009\/07\/rate-buydown.jpg\" "\\"rate-buydown\\"")
<\/p>\n