The real estate market has suffered a punch in the gut from the interest rate hikes this year and both sellers and buyers have taken notice. There is a way that will help both Buyers and sellers during these higher interest rate times we are here in October 2022.

Hi my name is John Herman of PropertyUp and I sell homes in the Northwest Suburbs of Chicago I wanted to let you know that have a coaching call 5 days a week with about 1,000 Real Estate agents every morning and they are all saying the same thing about the market, we are in a major adjustment period and it may have just started.

Now a great solution to getting deals done is to have a seller apply a 3% seller concession to purchase points towards the buyer’s loan thereby lowering the buyer’s interest rate and payments. This solution is great for both the buyer and seller for a few reasons. For Sellers that have been on the market for a while and have not sold yet what we as Realtors normally see is larger price drops to get the buyer’s attention say something like a $25,000 price drop on a $400,000 home. However with these interest rates that massive price drop is just not enough to help the buyers reduce their payments enough. If the seller offers a 3% seller credit towards the buyer points, that would almost double the monthly savings for buyer’s payments and cut a potential price drop of $25,000 to about $12,000 for the sellers, it’s a big win for everyone.

Another option for a buyer is to utilize a 5-year or a 10-year arm along with a 3% seller credit, that would be another large drop in the interest rate that could make the difference for some buyers of either getting that home of their dreams or not.

This video was focused on interest rates and how to help both buyers and sellers if you found it interesting please click the like and subscribe button and PLEASE remember to make it a great day.