Hi, it’s Tom Heath with the Mortgage Guidance Group at Nova Home Loans, and this is our weekly installment of mortgage and real estate related matters. This week, want to talk to you about that shift that’s happening. I’ve gotten several calls last few weeks from listing agents talking about their homes being on the market longer than expected or the offers coming in at a slower pace or price reductions. And we’re starting to see the buyers getting a little bit more control in this market. We still have a supply issue, so it’s certainly not a time for massive price reductions, in my personal opinion, but it is time to start enticing these buyers back in. We have to do a little bit more work for that. One of the things that’s really holding people up are the interest rates. And that is something whereas the seller of the property, that individual has the ability maybe to offer some incentives to maybe permanently buy down the interest rate. Or there’s something called a 2- 1 buy down where the interest rate is lower for the first year and then for the second year, and then moves to the market rate after the third year. A little bit different than an adjustable rate. But there are fees associated with these types of products, and if the seller is willing to absorb those fees, they can offer a buyer of their home a little bit of a competitive advantage in selecting them.
So, again, it doesn’t make sense for every situation, but we want to start planting these seeds that it is time to maybe get back with your lending partner and look at ways you can make that home a little bit more attractive to the buyers if you’re not getting them flowing through.
If you have any questions on this, you can always reach out email, phone, head over to our website, mggroup tucson.com. There’s a contact button there. You can recommend any type of topic for these weekly updates. And while you’re there, check off to the side. There’s a little tab for the tools for agents, and those show you all the marketing tools that we currently have, some that we’re developing, all of our classes and upcoming events. Thanks so much!