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Price Reduction vs Seller Concession
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When a real estate market gets saturated with competition and in
combination of tighter loan guidelines, a seller reducing their asking
price may not be as beneficial to a buyer as seller paid points in
concessions could be.
If you were to take the same amount of money a seller would
potentially lower their price by and have the seller move that amount
into lowering your interest rate, the majority of the time you are
ahead...especially in an escalating rate environment.
The seller reduces their tax basis and you get the deduction for paid
points. (Please consult your Tax Advisor)
Please give me a call for further explanation and a cost analysis for you.
