Had to do a lil research to see what your most viewed video is, no surprises that it would be a mortgage coach video! LOVE seeing you utilize this tool. Total Cost Analysis is the greatest tool to illustrate complicated concepts to consumers in a way they can understand.
If the cost to sell a home for the homeowner is a % of the sales price though, and the sales price is decreased, would the argument on the listing side be that a listing agent saves their client 'the difference' between 9% of 582k (= the closing cost to a homeowner of $54,000) vs 9% of 600k (closing cost to a homeowner $52,380) which is a Cost Benefit of $1,620, AND that a price decrease (after it sits for say 60 days) will hopefully open up a new pocket of buyers through the MLS price change and new buyer sector alerts? The savings to a seller isn't huge but it does seem more in their favor to plan a scaled price decrease strategy, no? Happy to hear more feedback and your video ROCKS!!!!
Hi Erin, you just made my night, thank you! A price decrease will bring new buyers for sure. But going out to market with a competitive price and a 2/1 buydown strategy to help buyers offset the current rate hikes; could get a buyers bid faster saving a seller the stress and time of waiting.
Hi Deric, thank you! Sellers in Denver are doing it! Even though our June median days on the market was still 4, sellers are feeling a little more inventory and a little more time on market.. and are over compensating to move their homes quickly. I love this for my buyers since many first time homebuyers were shut out of the market for the last two years.
it is the seller.. however, if the buyer needs to make up a difference, they can. Meaning.. if the seller is giving $12000 but the cost is $12,500; the buyer can contribute. The seller is also limited by the Interested Party Contributions. It is not in the best interest of the buyer to fund a buydown since it sits in an escrow account not earning interest
The best thing about the 2-1 buydown is that they should not have payment shock.. the fixed payment is known from the onset and never changes. Unlike the risk of the ARMs
Buyers know it's coming and are qualified at full interest rate of the 3rd year. So they actually qualify and get a bit of break for the 1st two years.
@@larryhughes72 that's right. great time to take advantage of a program like this with a little more inventory and the high probability of rates going down further in the next two years.
Had to do a lil research to see what your most viewed video is, no surprises that it would be a mortgage coach video! LOVE seeing you utilize this tool. Total Cost Analysis is the greatest tool to illustrate complicated concepts to consumers in a way they can understand.
If the cost to sell a home for the homeowner is a % of the sales price though, and the sales price is decreased, would the argument on the listing side be that a listing agent saves their client 'the difference' between 9% of 582k (= the closing cost to a homeowner of $54,000) vs 9% of 600k (closing cost to a homeowner $52,380) which is a Cost Benefit of $1,620, AND that a price decrease (after it sits for say 60 days) will hopefully open up a new pocket of buyers through the MLS price change and new buyer sector alerts? The savings to a seller isn't huge but it does seem more in their favor to plan a scaled price decrease strategy, no? Happy to hear more feedback and your video ROCKS!!!!
Hi Erin, you just made my night, thank you! A price decrease will bring new buyers for sure. But going out to market with a competitive price and a 2/1 buydown strategy to help buyers offset the current rate hikes; could get a buyers bid faster saving a seller the stress and time of waiting.
Nice work Nicole. Do you find showing the price reduction first (as an option) and then showing the temp and perm reductions as it may flow better?
I do.. especially since you need the price reduction to kick off new alerts.
Great info! but the issue is where can you find a seller that is willing to pay for the cost in today's market? Great Stuff!
Hi Deric, thank you! Sellers in Denver are doing it! Even though our June median days on the market was still 4, sellers are feeling a little more inventory and a little more time on market.. and are over compensating to move their homes quickly. I love this for my buyers since many first time homebuyers were shut out of the market for the last two years.
Can the 2/1 buy down be funded from the buyer or does it have to be the seller?
it is the seller.. however, if the buyer needs to make up a difference, they can. Meaning.. if the seller is giving $12000 but the cost is $12,500; the buyer can contribute. The seller is also limited by the Interested Party Contributions. It is not in the best interest of the buyer to fund a buydown since it sits in an escrow account not earning interest
great vide! Very informative
what are the $1000 refinance certificates - I am and lender looking to R & D.
Thanks for this!!
I could just go on and on with strategies for buyers. Time to get them all a seat at the closing table!
Does the 30 year fixed period begin after the 2 years, when the rate is back to “normal” or does it begin immediately. Thank you great video
Hi Daniel, the rate is 2% lower year one, 1% lower year 2, then the locked rate for the last 28 years.
Is this scenario broken down through the TCA?
yes
Home prices will correct. You need equity to refinance. Loads of first time buyers with 2-1s will hit payment shock and lose their homes.
The best thing about the 2-1 buydown is that they should not have payment shock.. the fixed payment is known from the onset and never changes. Unlike the risk of the ARMs
Buyers know it's coming and are qualified at full interest rate of the 3rd year. So they actually qualify and get a bit of break for the 1st two years.
@@larryhughes72 that's right. great time to take advantage of a program like this with a little more inventory and the high probability of rates going down further in the next two years.