By:
CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612
Date:
10-17-08
These days, I hear many complaints from home sellers:
"It's been on the market for nine months with without even a nibble."
"I cut the price three times, and it still hasn't sold."
"Three other houses on my block are up for sale, so I took mine down."
In a buyer's market, sellers not only compete with each other, they are also in competition with themselves.
Typically, the first thing sellers think about doing to make their houses more marketable is reducing the price. Very often, that doesn't work, because even though this may have been one of the problems it is not all of the problems. In this case they are also facing income constrained buyers.
The income constraint may be imposed by lenders, who set maximum ratios of income to expenses. Or the constraint may be self-imposed, based on what buyers believe they can afford. So, what can be done? It may be time to suggest to your buyer to pay points in order to reduce the rate on the buyer's mortgage, retaining the same sale price and loan amount.
Points paid to reduce the rate are sometimes termed a permanent buy down, because the lower rate and payment run for the entire life of the loan. An even more powerful way to lower the payment is for the seller to buy down the payment in the early years of the mortgage. This is called a temporary buy down because the payment reduction doesn't last. So, consider this an option, but don't assume that the price isn't the problem either. In a down market, some agents may raise the asking price in order to ease you into the sale, but all this really ends up doing is making you wonder why your home hasn't sold in the long run. So, remember price the home right and it will sell faster.
For More Information!
Check Out Our Website :
www.cjharrington.com
For FREE Buyer AND Seller Reports!
Or call my cell phone at 440.336.0612.
Friday, October 17, 2008
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