Hey Team,
Rates are still above 7%, and the headlines are ugly, but the agents and buyers who are writing offers anyway are getting some of the best deals I’ve seen in years.
Nationally, there were 62.6% more sellers than buyers in September, the widest gap Redfin has on record. Here in Atlanta, sellers paid concessions on 72.8% of deals this summer. Fewer buyers mean more negotiating power for the ones who are still in the market.
Here are three recent deals from the past 30 days that show what that looks like.
1. $24k in concessions, $0 out of pocket for the rate
Our buyer went with a 7/6 ARM at 6.375%, fixed for the first seven years. That’s nearly a full point under last week’s 7.24% 30-year average. The offer was strong enough to win the house and still get $24k in seller concessions, which paid for that rate. Cost to the buyer: nothing.
2. $36k in additional equity on day one
Motivated seller. Sales price was $415k. Appraisal came in at $451k. On top of that, we helped the Realtor negotiate for the seller to pay 5.5% in concessions! We used part of it on a seller-paid 2-1 buydown that put the first-year rate under 5%, and there was enough left to cover all the closing costs. A homerun deal in any market.
3. Under $3k to close for a first-time buyer
This buyer paired a first-time homebuyer grant with nearly $15k in seller concessions. They got the keys with less than $3,000 out of pocket and a rate below market.
The buyers waiting it out are missing this window of opportunity
A lot of buyers are sitting on the sidelines waiting for rates to drop. But when rates fall, buyers come back, and the concessions go away. These three didn’t wait. If you have buyers on the fence, we can put together a “Cost of Waiting” analysis to help them understand the opportunity. Maybe they should wait, but maybe they just need to be educated on the opportunity.
Takeaways
If you have buyers on the fence, maybe they just need to understand the opportunities out there.
Deals with seller concessions outperform slightly lower prices or rates almost every time. We can help your buyers understand the math on why.
ARMs have a stigma, but they are worth a second look when the fixed period lines up with how long the buyer plans to stay.
Stack first-time buyer grants with seller concessions. Together, they can bring cash to close near zero.
Get the financing plan set before writing the offer so you know exactly what to ask for.
If you’ve got a buyer waiting on rates, this is the conversation to have with them now. Reach out and we’ll run the numbers together, or send them my way.
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