Creating Win-Win Deals in the Current Market

Inventory is still growing in Denver, and as a result we’re seeing more transactions where the seller is giving concessions to the buyer. 

Sounds great if you’re thinking about buying, but not so great if you’re thinking about selling, right?

The truth, as with so many things, is somewhere in the middle. An experienced real estate broker knows how to write a contract that makes both parties happy, because that makes it more likely that deal closes successfully.

Since I work with both buyers and sellers, I see both sets of options to get a deal done. Knowing what matters to the specific parties involved is so important, which is why I’m such an advocate for clear communication in real estate transactions. I’m going to share some of the details, but know that if you have any questions you should call/email/text me and we can talk about what this all means for your unique situation and goals.

Sellers want to feel good about the sale price, and want to be confident that the buyer will successfully close.

A “concession” in real estate terms is when a seller contributes to closing costs, or pays to “buy-down” (lower) the rate on a mortgage.

In a competitive market where sellers have the luxury of choosing from many offers, and often cash offers, these are less common. In our current market with high inventory and interest rates staying consistent, they are on the rise.

For a seller who has their mind anchored on a specific sale price or sales timeline, concessions can be an advantageous tool for them to use to attract strong, ready buyers

Buyers need an affordable monthly payment

Yes, the down payment, but it’s the monthly payment that buyers have to live with as they move into a new home.

Potential buyers who continue to wait for an interest rate drop risk missing out on future appreciation, and definitely miss out on living in the home that they want.

Buy-downs can temporarily (or permanently!) lower the rate on a mortgage and make monthly payments more manageable for their budget. 

At the end of the day, there are no deals unless both sides are comfortable. Having an experienced real estate broker who knows how to create win-win situations makes sure that your time isn’t spent struggling to make it work, it’s spent in your new home!