Monday, May 21, 2007

California Association of Realtors Encouraging Interest Rate Buy-Downs

If California realtors haven't started already, they soon will.

I mean, trying to convince California homedebtors that the "good times are over" is hard work. And not a little bit embarrassing, since over the last 7 years it has been realtors themselves doing cheerleader splits on the front lawn everytime a house sold for 15% more than the original asking price.

Now with slowing housing market, the tables have turned slightly. A realtor's work might require a little more effort. It might even become more dangerous. Driving over to tell home sellers that they should seriously consider "dropping their drawers" on sale price in order to flip might even precipitate a smack in the mouth, or worse a pickaxe in the hood of that precious Audi A4!

We wouldn't want that.

So let's look at some other options.

The median prospective homebuyer in Orange County isn't rich. He or she is probably pulling down somewhere between $75,000 and maybe $80,000 per annum gross. So when this prospective homebuying pauper comes knocking on the door of the Open House, why not help a brother out by paying down down his interest rate over the first three years of his mortgage loan? There's the 3-2-1 interest rate buy-down, for example - sort of like bringing the "teaser rate" mortgage back from the dead! Where would we be without that concept of "get in now, while you still can!" these past 7 years!

With the interest rate buy-down sales tactic, homedebtors might even help widen the pool of prospective buyers to help them qualify for home financing in the first place.

While the interest rate buy-down solution is expensive to the seller inititially, it is financially more favorable than just slashing the home sale price.

Consider yourselves effectively warned.

With love from your local Realtor(R) and coming to a desperate homedebtor near you: Interest Rate Buy-Downs!

Say no to low prices!

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