Buyer’s Market Back
New data shows just how much the housing market has shifted toward buyers. According to Redfin, 42% of home sellers gave seller concessions or a credit to buyers in Q4 of 22 – that’s the most since pre-pandemic levels. Seller concessions are more valuable than price reductions for a few reasons. First, seller concessions are most often used to cover closing costs that would otherwise be paid out of pocket. If your total out of pocket for the down payment and closing costs is $25k, Reducing the price by $5k will save you $250 out of pocket and $25 per month. But a $5k seller concession saves you $5 grand immediately. Additionally, seller concessions can be used for the popular buy down programs lenders are offering now. This means the seller pays you money as the buyer and the funds go toward reducing the interest rate on your loan by as much as 2% in the first year! On a $400,000 loan – that is just under $500 per month. These incentives can save you big time and make homeownership more affordable! Take advantage of the buyers market while it lasts!