Seller Concessions

Sellers Try To Bait Buyers With Concessions

Posted on by TMN Editor
As buyers shy away from a pricey market, more sellers are hoping concessions will help them move their house. A new report from Redfin found that home sellers gave concessions to buyers in 42.9% of U.S. home sales during the three months ending April 30. This is up from 25.5% at the same time last year but below February’s all-time high of 45.6%.  Concessions can include money toward repairs, closing costs, and mortgage-rate buydowns. About one in five homes sold for less than the asking price along with a concession. Redfin analysts say seasonality is the reason concessions dropped off, as more buyers typically enter the market in spring, giving sellers an edge. But the high-rate, high-home price environment kept…

Permanent Rate Buydowns Continue To Reign For Affordability-Minded Buyers

Posted on by TMN Editor
Rate buydowns continue to soar as borrowers look for ways to combat the affordability crisis, according to new data from Black Knight. In the third week of January, 57% of buyers paid at least a half-point on a permanent buydown, while 44% paid a full point, and almost 25% bought down two or more points. In total, borrowers paid an average of 1.25 points down, at an average of $4,300 per borrower. Pre-pandemic buydowns from 2018 to 2020 averaged only 0.5 points, around $1,500. This is not the high point for buydowns, which peaked in September and October 2022 with 71% of buyers buying down their rates. But it points to a continuing trend of buyers trying to decrease their…