Finally some good news for buyers. Home prices are correcting, mortgage rates are coming down, and sellers are offering concessions.
Concessions can come in different forms, but the 3 most important ones to buyers are the following:
- Credits towards repairs or performing the repairs found in the home inspection. During the past 2 years most buyers had to submit an offer in “as-is” condition. That means that regardless of what was found during the home inspection you could NOT ask for it to be addressed.
- Giving the buyer money towards closing costs. Usually in the range of 1% to 5% of the sale price. The average closing costs for buyers in Illinois can make up about 3–6% of the price of the home. That means if you take out a mortgage worth $400,000, you can expect closing costs to be about $12,000–$24,000.
- Buying down the mortgage rate for the buyer. There a few options for what this could look like, but in simple terms it means the seller pays your lender to lower your mortgage rate. Just imagine the savings over the length of the loan?
Don’t let the shift in the market pass you by. Contact me to level up your life.
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