In a market as competitive as the one we are experiencing, it is essential that we exhaust every opportunity separate ourselves from the pack.
This is one way to do so.
Did you know that by having your seller/builder credit potential buyers non-recurring closing costs specifically in the form of a Third Party Funded Temporary Buy-Down the following benefits are realized:
More buyers are qualified with your listing compared to other listings on MLS because monthly mortgage payments are reduced by hundreds—thousands of dollars less per month.
Home sellers closer to asking price resulting in satisfied seller and maintains comps/values in subject neighborhood.
Sellers cost basis is reduced by the amount of seller credit.
Buyer gains tax deduction equal to the amount of the seller credit.
If the borrower refinances or sells the property, the unused buydown funds will be credited to the borrower, reducing the payoff.
With the above benefits you are uniquely positioned in your marketplace with a different offer to your potential sellerw/builders.
Temporary Buy-Down Defined
The (3-2-1 or 2-1 or 1-1-1) Temporary Buy-Down reduces the borrower’s monthly mortgage payment. Example—3%reduction of the payment rate the first year, 2% reduction of the payment rate the second year and 1% in the third year.
The Buy-Down Subsidy is paid by the seller (or builder) at the close of escrow and placed into a buy-down account with the lender.
Each month the buy-down account is drawn upon to make up the difference between the buyers payment and the actual payment at the note rate.
Final Thought
They can because they think they can.
This is one way to do so.
Did you know that by having your seller/builder credit potential buyers non-recurring closing costs specifically in the form of a Third Party Funded Temporary Buy-Down the following benefits are realized:
More buyers are qualified with your listing compared to other listings on MLS because monthly mortgage payments are reduced by hundreds—thousands of dollars less per month.
Home sellers closer to asking price resulting in satisfied seller and maintains comps/values in subject neighborhood.
Sellers cost basis is reduced by the amount of seller credit.
Buyer gains tax deduction equal to the amount of the seller credit.
If the borrower refinances or sells the property, the unused buydown funds will be credited to the borrower, reducing the payoff.
With the above benefits you are uniquely positioned in your marketplace with a different offer to your potential sellerw/builders.
Temporary Buy-Down Defined
The (3-2-1 or 2-1 or 1-1-1) Temporary Buy-Down reduces the borrower’s monthly mortgage payment. Example—3%reduction of the payment rate the first year, 2% reduction of the payment rate the second year and 1% in the third year.
The Buy-Down Subsidy is paid by the seller (or builder) at the close of escrow and placed into a buy-down account with the lender.
Each month the buy-down account is drawn upon to make up the difference between the buyers payment and the actual payment at the note rate.
Final Thought
They can because they think they can.
~Virgil
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