If you're waiting to buy a house until the interest rates come down, this is for you.
What I Hear on Almost Every Offer
One of the biggest things I hear from clients putting in offers is, oh, well, it's listed at 500, but we think we might be able to get it for 490.
Offering $10,000 off the purchase price is going to save you about $50 a month.
Offering the listing price of 500 and asking for $10,000 in seller concessions, to either buy down your interest rate or cover your closing costs, is going to be hundreds of dollars a month in savings.
| The Offer | What It Does for Your Payment |
|---|---|
| $490,000, no concessions | About $50 a month |
| $500,000 with $10,000 in concessions | Hundreds of dollars a month |
Ask Your Realtor and Your Lender
If your Realtor or your lender is not bringing up the idea of asking for seller concessions instead of a lower price, they are doing you a disservice. Concessions, all day long, take people a lot further.
Then You Are Not Waiting With Everybody Else
A temporary buy down is a great way to get into a house. Lower payments now, refinance when the rates come down. Then you're not competing with all of the other people who were also waiting for rates to come down.
And like I said in another video, the best time to buy is always five years ago.
I first said all of this in a video in June 2023, and the numbers above are from then. Yours depend on your loan and the market the day you write the offer, so call me and I'll run them with you.
Dakotah Kutz is Producing Branch Manager at Citywide Home Mortgage, NMLS #1568471. More than 46,000 people follow her on TikTok as Your Mortgage Mom.