Welcome in and learn about helpful tips on how to make your Real Estate negotiations a win/win! Helping you make a solid investment or make the most amount of money on the sale of your home is always my goal. I thought to make a little change and post a few ideas that may potentially help you in the future... I often see home buyers and home sellers stuck on price at certain amount... Lets talk about price reduction versus buying down a rate instead ... Imagine you get an offer for your home which is $20,000 lower than your asking price... or you consider reducing your price from $800,000 price to $780,000. (which is potentially $20,000 loss for the seller) Instead of dropping the price, being creative... we can offer to buy down the interest rate by 1 point for your next buyer. On a loan amount of $500,000 (1point = 1% which is $5,000 in example) Here would be the math: The current rate at no points is 3.5% for 30 year fixed mortgage. $500,000 Loan Amount at 3.5%= $2,245 per month If you buy down 1point: $500,000 Loan Amount at 3.25%= $2,176 per month Monthly savings to the client is $69 per month but, let’s amortize that. The total interest for 30 years at 3.5% is $308,821. The total interest for 30 years at 3.25% is $283,371 That is a savings to the buyer of $25,450 over time!!! and to the seller... paying point only means reduction of $5,000 instead of $20,000. Talk about a win/win! Being creative, having a good team of lenders, title company, knowledge and ideas to market your home or help you purchase one while finding the best financial solution for you is always my goal! Let me help you with your next Real Estate Transaction. #MauiZee #MauiHomes #KahanaRidgeExpert #MauiHomeSpecialist #BershireHathaway #LetsTalk #8082801922 https://www.instagram.com/p/B1kLohUn5sJ/?igshid=ic1ko1ppnopj
