St. Louis Real Estate - You Selling? - Read This!

Selling Your Home? reprinted with permission from Gorman and Gorman Home Loans, 11960 Westline Industrial Drive Suite 110, St. Louis, MO 63146

Consider a Seller Concession…

Lowering the price of your home may sell it more quickly, however offering certain incentives can actually be much less expensive and may be more effective. Major impediments to home purchase include the lack of cash and lack of income to qualify. How can you help?

For example, if your home is listed for $300,000, you can offer…

Three percent towards the buyer’s closing costs. This will lessen the cash necessary for the purchase. For example, if they are obtaining an FHA mortgage, you may have just cut the cash requirement in half!

Three percent towards a temporary buy-down of the interest rate.  In this case you would be helping the purchaser pay a lower rate in the early years of the mortgage, without the long-term risks of an adjustable rate mortgage.  A “2-1” buy-down off of a thirty-year fixed rate at 6.0% would give the buyer a 4.0% rate in the first year and a 5.0% rate in the second year. The mortgage payment would be reduced by approximately $200 or more than 10% for the first 12 months. Now more buyers can “afford” your home.

It might seem that $9,000 to $18,000 of “concessions” are expensive and certainly they are. However, .compare these numbers to the cost of lowering the price by 10.0% ($30,000) to make the house sell faster. A well-placed concession could be less expensive and make the home sell faster.

The Brother Team
Jeff, Doug, Chip, & Rachel

Gorman & Gorman Home Loans

Direct Phone: (314)812-0374

jbrother@gorman-gorman.com

Tags: St.+Louis+Real+Estate, Home+Sellers, Seller+Concessions, Gorman+and+Gorman

This entry was posted on Tuesday, September 2nd, 2008 at 6:31 pm and is filed under For Sellers, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.