Agents need to be using 2-1 buydowns to secure more transactions.
Do you need more listings? Offer your sellers what your competition doesn’t even know about: 2-1 buydowns. Today I’ll discuss how you can use this program to help your sellers and secure more listings.
Essentially, a 2-1 buydown is an interest rate reduction for the first two years of a buyer’s mortgage. If your seller offers to pay for one during negotiations, it comes with tons of benefits.
First, you won’t have to reduce the price because you’re lowering your buyer’s monthly payment. Plus, you can use it as a marketing tool to help entice buyers to check out the property. This keeps money in your seller’s pocket.
Next, it puts both the buyer and seller in a better financial position. Buyers are concerned about rising interest rates, so this is a great way to get them more comfortable with making an offer. Even better than that, 2-1 buydowns will take less money out of your seller’s pocket than a price reduction. Typically, they cost about 2.5% of the final price, which is likely way less than the tens of thousands of dollars your seller would lose in a price reduction.
If you have questions about how you can use 2-1 buydowns or anything else, please call or email me. I am always willing to help.