Simply stated...."Buyer Incentives" are distractions that buyers focus on instead of considering the real issue.....THE PRICE....
The "Eckler Team"
Century 21 Almar & Associates
Venice, Fl 34285
I think the best bet for you as a buyer is to get the lowest price and the best terms possible for you on the house you want to purchase. Buyer's incentives, in the long run, is not worth as much as a great price on a home.
Find a great Realtor who knows about current local market condition and the long term outlook, who is great at negotiation and who has your best interest in mind to represent you. Tha's worth much more than any incentive you can get.
Buyer's incentives? are we talking about big screen tvs?
or something that has serious financial impact like BELOW MARKET INTEREST RATES?
NOTE: Standard Price Reductions of tens of thousands of dollars
do very little to make homes more affordable.
Ex. When a Seller reduces his price by 10,000 ...it lowers a potential Buyer's monthly payment by only $53.45
$50 bucks per month! That doesn't exactly SCREAM, "Honey stop the car! Let's Buy Now!
IMPACT of an interest rate Buydown:
EX: Seller funds a 3 2 1 Buydown (At closing) on a Buyer's $300,000 mortgage amount
Cost to the Seller is $13,000 .
Savings to Buyer is $549/month (Year 1)
The Seller would have had to reduce his price by $86,000 to reduce the Buyer's monthly payment by that same amount with a Standard price reduction.
Buyer's Incentives such as Seller-Funded Temporary Interest Rate Buydowns increase market potential for Sellers while allowing Buyers to EASE into Homeownership comfortably and confidently....Win! Win!
I admit that the concept is more involved than SIMPLE Subtraction...
so...at 321ADVANTAGE.com ....we do the math for you!
I agree that buyers incentives sometimes are not worth as much value as simply getting the house for a fair market price, it is best to work with a Realtor who can negotiate a good value for you because of their knowledge of the market. Michael
There are all kind of buyer incentives in the current market condition. It is a Buyer Market now. A lot of builders give good incentives on their inventory homes. Some builders, like McCar, would allow you to apply the incentive to lower your final purchase price. Of course, you might have to use their mortgage partner. Even for some existing high end homes, the sellers are offer buyer incentive if a deal can be closed before a certain date.
Great time to buy!!!