PLACE Magazine Inaugural Issue, December 2022

Relevant Conversations in Today’s Market Conversations about interest rates are very top- of-mind these days for both buyers and sellers. As a luxury agent, it’s up to you to proactively share creative ways to make buying or selling easier for your clients. Consider these talking points as interest rates increase, using a $650,000 home as the example: FOR BUYERS Let’s talk about permanent rate buy-downs. If you can’t afford a higher payment, let’s consider going to the seller and asking them to buy the rate down. Decreasing a buyer’s interest rate by 1% can cost the seller about 3%. If you’ve got a $650,000 note, you’re typically borrowing $500,000 and putting down some money. Three% of the $500,000 to be borrowed is $15,000. FOR SELLERS I’m sure you would agree, seller, that a $15,000 reduction on a $650,000 home would not get you much attention. But if you take that same $15,000 and provide that to the buyer, it enables the interest rate to come down. Now you’re able to open up your property to more buyers instead of them walking away because they can’t afford it. Jeannette’s key piece of advice? When you have a captive audience, tell them something different.

“ Your job is to earn a seat at that table of decision makers. Because that’s what wealthy, high-net- worth individuals expect.


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