Real Estate Success by Sonny

 

Tough Times for Sellers This Summer Means Opportunity Time for Home Buyers in the DFW Area 🌞🏡

As the summer heats up, the Dallas-Fort Worth area's real estate market has cooled. REALTORS and I report slow sales on pre-owned homes, leaving many sellers nervous, anxious, and ready to make deals. For home buyers, this spells opportunity. 💡✨

Your moment has arrived if you’ve been waiting for a market correction. Sellers are feeling the pressure, and you can take advantage of the great deals available now. While high interest rates may seem like a barrier, they can be overcome with a Buydown strategy.

A Buydown involves paying a fee to the lender to reduce the interest rate on your mortgage, which can be covered by either the buyer or the seller. This can help you qualify for a loan or save thousands over the first few years of homeownership. And when interest rates drop below your new rate, refinancing could make even more sense. 💰🏠

For example, if you buy a home I’m listing next week for around $600,000 and put 20% down, you’d have a loan amount of $480,000. Comparing a 7% interest rate to a 5% rate on a 30-year loan, you’d save thousands over the next five years. The cost of the Buydown depends on your credit, lender, and other factors, but you can propose that the seller covers all or part of this cost. This can be negotiated alongside or instead of a price reduction. Just remember, the home must still appraise at the sales price. If you have a savvy agent, they can help you navigate this strategy.

Example: For a 30-year loan of $480,000:

• At an interest rate of 5%, the total payment over the life of the loan would be approximately $927,627.77.
• At an interest rate of 7%, the total payment over the life of the loan would be approximately $1,149,642.71.

The savings by securing a 5% interest rate instead of a 7% interest rate would be approximately $222,014.95. *This example depends upon your credit and other lender conditions.

Curious to learn more? Ask your REALTOR or contact me to explore how you can secure a home at a more affordable interest rate. Builders often offer buydowns, making new homes attractive, especially when sellers are motivated. 🏘️🔑

One of my current listings includes a $10,000 incentive to help buy down the interest rate. Located at 8276 Western in The Colony, it’s listed for $1,549,900. If that’s not within your budget, I have another home coming on the market soon in Prosper, TX. It’s a beautiful Highland Home in the Lakes of Prosper neighborhood, about 2600 square feet, and expected to be priced under $600,000. 🌟🏡

Don’t wait—contact me or your agent for more information. 📞📧

Sonny Moyers, REALTOR & Broker, The Renaissance Group, Prosper, TX

Visit me on YouTube @AREP2023 or on my website at SonnyMoyers.com.

You can also find me on LinkedIn and see my book about real estate at: RealEstateBook.org.

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