Advice for buyers & sellers in today’s housing market

Abstract

Buy down the rate if possible: Talk to your loan officer about what it would take to buy down the mortgage rate. In Sacramento last month we saw buyers on average pay about 2% below the original list price. Buyers today have more space to scrutinize details, so tightening up details gives buyers fewer reasons to say NO. Help the escrow be fast: Buyers are pickier about staying in contract, so do all you can to help the escrow be smooth and quick. In Sacramento, it's a Bay Area buyer, and I suspect in many other states it's a cash buyer from California. Don't price for the unicorn!!! Be in tune with picky buyers: Buyers are pickier about condition, location, and price. Buying down the rate is NOT your silver bullet: I'm hearing lots of people talk about keeping the price high and giving a credit to the buyer to buy down the rate. The truth is some buyers are going to want a price reduction as well as a credit.