The Secret to Getting a Low Rate When Submitting an Offer on a Property

At IET Capital, we believe in empowering our clients with financial knowledge and smart strategies to help them buy the home of their dreams. One such tactic that can lead to substantial savings is instead of submitting a below-list offer on a property, making an offer with a “Seller Buydown.”

Seller Buydown is where a contribution is offered as an incentive to the buyer from the seller, with the sole purpose of the buyer using that contribution to buy down their interest rate, which in the long run lead can lead to bigger savings than if the seller simply accepted a below-list offer from you.

For instance, suppose you’ve found your ideal home listed at $1,000,000. By submitting an offer at the list price with a $24,000 seller contribution, your monthly mortgage payment could be reduced by as much as $165 compared to a below-list offer of $965,000. But the long-term savings on interest payments are where the real financial gains come into play. With a Seller Buydown, you could save a $104,000 in interest over the life of the loan.

In the end, both parties walk away with a win– the seller gets more money than they would if they accepted your below-list offer, and you still save money!

Your journey to homeownership begins with informed decisions and personalized solutions. Let us help you seize every opportunity to optimize your investment––email us or give us a call at (323) 412-9060.

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