How to get buyers off the fence and into their new homes in Palos Verdes is the question of the hour. This morning, the Los Angeles Times had two interesting articles on that very subject.
“A reverse offer gets attention” by Lew Sichelman explores a unique concept – What can the Seller do to coax the Buyer to the table? Sichelman suggests that the Seller may want to make the Buyer an offer. That is really taking the bull by the horns. Before taking this approach, it is recommended that the Buyer has shown some interest in said property and has communicated that feedback to his agent. The Buyer’s agent must be on board with the idea of an offer from the Seller and the Buyer must be preapproved for a mortgage. The offer from the Seller must address some of the Buyer’s concerns about the property and be at a price that is reduced from the listed price.
“Builders try to coax buyers off the fence” by Kenneth R. Harney describes the incentives that builders are giving to Buyers. A study conducted early in January indicated “the mortgage rate that consumers said would be most effective in persuading them to buy now: a 30-year loan with a fixed 3% interest rate.” Some builders are now offering a 3.99% interest rate. Conventional rates are now 4.875 percent with 1 loan point. Paying higher loan points reduces that interest rate. Builders are offering “combination packages of special financing, price concessions, lower down payments and perhaps application guarantees.”
