Rick Stroud, Real Estate Pro in Greenville, SC

as a seller, is it better to reduce the asking price by 10K or offer to pay so that buyer has no PMI...which is more likely to help get house sold???

Asked by Rick Stroud, Greenville, SC Fri Jul 6, 2012

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This question is 4 months old already, but certain questions are timeless.
The answer to your question really depends on the price, so we can see what the $10k would mean.
For those who are not familiar with it, and there are many who do not, there are certain lenders who allow a 1 time PMI payment so that monthly PMI does not get charged. This can mean a lot more to a buyer than reducing the price. The $10,000 lower price would amount to a monthly mortgage payment difference of $63 at current rates. On a $200,000 loan at 90% with top credit scores, the monthly PMI would be $82. You can use this to judge whether the price reduction is worthwhile.
0 votes Thank Flag Link Tue Nov 13, 2012
Price is KING.

Reduce the price or run the risk of potential loan fraud by offering too much in closing costs.

Best of Luck
0 votes Thank Flag Link Mon Jul 9, 2012
Hey Tom...thanks for the info, the pmi buydown is through a program offered by Wells Fargo for jumbo type loans.
Flag Mon Jul 9, 2012
Incentives, like the one you propose, are most effective when the buyer has acknowledged the home meets their criteria. Offering such incentives openly to all, is actually counter-productive.

Being at the showing can prove helpful. Otherwise you are entirely dependent on the buyer's agent. Now, don't forget the most important factor in any such incentive, include an expiry.

Best of Success to You,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, Fl
727.420.4041 - http://www.RealEstateMadeEZ.us

JUST PUBLISHED BUYER GUIDE: http://www.trulia.com/blog/AnnetteLawrence/
0 votes Thank Flag Link Sat Jul 7, 2012
The seller offers to pay what so there is no PMI?? Better have the "seller offer to pay so that buyer has no PMI" pass the sniff test with the buyer's lender/underwriter, no?!?
0 votes Thank Flag Link Fri Jul 6, 2012
Carla...its a program offered by Wells Fargo for jumbo loans :)
Flag Sun Jul 8, 2012
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