A Homebuyer Advantage, Right Now

Today in the Denver market – and in many real estate markets around the country – homebuyers have an advantage. Here’s why…
 
Year-over-year inventory is up, so there are more homes on the market today compared to 2021. Plus, at the beginning of winter we witness a traditional slight decrease in inventory. Therefore, during this season, the clients with homes still active in the market tend to be motivated to sell.
 
And motivated sellers allow room for negotiation.
 
What’s best – there are purchase options that can be a win for BOTH the buyer and the seller. And the realtors, and the title company, and the loan officer, and the neighborhood.

Buyers save tens-of-thousands of dollars - and these options DO NOT include reducing the home price.

So, let’s call it a win-win-win-win-win-win.😊
 
‘How can that be?’ you might say. Because people in the real estate industry can be very creative, resourceful, and motivated as well. And the best ones, put our clients first.
 
Let’s take a closer look at one of the best options for all involved…
 
Buydown Loan Programs

This is a seller incentive with no additional costs to the homebuyer. Buydown loan options provides a temporary reduction in homebuyer interest rate for the first 1, 2, or 3 years of the loan. After which, the rate will revert to a fixed rate for the remainder of the loan.
 
For example, on a 3-2-1 buydown, the homebuyer’s starting interest rate will be 3% lower for the first year, 2% lower the second year, and 1% lower the third year, before reaching the final fixed rate on year four through the term.
 
There are several buydown programs available for buyers looking for a primary residence or a second home – including 3-2-1 buydowns, 2-2 buydowns, and 2-1 buydowns, to name a few.
 
In best-case scenarios, buyers may also be able to tap into additional money-saving opportunities for down payments and/or closing cost reduction incentives – these include gifts from relatives, state and federal down payment assistance programs, and lender credits.
 
For instance, on the lender credit option, U.S. Bank offers their qualified customers a percentage off their loan amount to help with closing costs up to $1,000. And if you’re not yet a U.S. Bank customer, all it takes is to open a qualified checking account. Super easy.
 
The buydown option is a favorite for many in the real estate industry because of the advantages and benefits to all parties involved:

• Seller:
  • Preserves value of the home
  • Odds are in favor of home selling more quickly
  • Increases awareness and appeal of the property to qualified buyers

 

• Buyer:
  • No added cost to the buyer
  • Lower interest rate and monthly payments in the first years of the loan
  • Additional cashflow for home improvements, landscaping, or other expenses

 

• Realtor:
  • Enticing pricing options for potential buyers
  • Home price remains at original listing (no reduction of home price)
  • Attracts more potential buyers who wish to ease into a mortgage payment over time

 

• Neighborhood:
  • Preserves value of the home
  • Homes are more likely to be owner-occupied
  • Quick sales demonstrate desirable community

 
Savvy Loan Officers will partner with your realtor to work out the best scenario for you. Yes, it’s a buyers real estate market.

Personally, I’m always looking to buy. And with these types of money-saving options, it’s getting much easier to invest.
 
Yours,
 
Blaise
​
Blaise Patrick Tracy
Loan Officer | NMLS #2299123
mobile 310.200.9180 | office 303.585.4167
blaise.tracy@usbank.com | linkedin.com/in/blaisetracy
 
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