With interest rates up and more hikes likely to come, the housing market has certainly shifted. The memories of bidding wars and contingencies being waived are still fresh in the minds of home sellers. While demand has ebbed and some buyers now have the upper hand, there are some steps that sellers can take to make sure their properties don’t linger on the market. 

Consider a mortgage rate buy-down

A buy-down is a cash payment that effectively lowers the borrower’s interest rate for a limited period, allowing borrowers to reduce their monthly payments during the early years of the mortgage. While a buy-down is typically negotiated between the borrower and the lender, sellers can also pay a certain dollar amount to the buyer’s lender at closing in exchange for lower mortgage rates on the buyer’s behalf. 

From a financial standpoint, offering to pay down interest rates by a point or two will likely be more advantageous than reducing the price by tens of thousands on an average-priced home.

Shell out for big-ticket items

If your home needs extensive repair or replacements, you can offer to foot the bill before the sale or cover the costs with the proceeds of the sale. This may include a roof replacement, a new HVAC system, or a new water heater.

Squeeze in a home warranty

Sometimes, all it takes is a small incentive to bring the buyer to the closing table. If you are at a loss on what that could be, consider paying for a home warranty that covers defects in the home, its systems, and appliances. Home warranties can also be transferred from the seller to the buyer. In fact, it is not uncommon for agents to purchase a one-year home warranty as an appreciation gift for their customers. 

Pitch your assumable VA loan

If you have a VA loan that can be assumed, it can be a huge selling point. An assumable VA loan means that a borrower can take over the terms of an existing VA loan even without having the required military service qualifications. 

With an assumable VA loan, the borrower will benefit from the same mortgage payment the seller had. If the seller had locked in great interest rates or refinanced during the low-rate environment of 2020 and 2021, buyers will be tempted to take advantage of these rates.

Drop the price in small increments

While no home seller wants to have to adjust their asking price, sometimes a price reduction is what will make the biggest difference when selling a house. Some real estate agents recommend that sellers do so at strategic intervals and in smaller increments. Any discounts from 0.5 percent to 3 percent are fair game if the initial price was close to market value. 

Keep in mind that too many price reductions will likely lead buyers to think that there is something wrong with the house, so limit price cuts to no more than three. 

Moving into a new home is an exciting time for you and your family. When you are ready to sell your home and purchase another, I would love to talk to you about your buying options. Call me today!