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Whiplash of the real estate market – and taking it back to the 90’s. – Tahoe Daily Tribune

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From the COVID real estate frenzy to 8% Interest Rates: How to Thrive in This New Real Estate Landscape

Let’s face it, the majority of buyers and sellers are feeling whiplash from this rapidly changing real estate landscape. From COVID-era low interest rates below 3% to the current market rates fluctuating around 8% on a 30 year fixed rate loan, that reduction in financing power not only hurts homebuyers but inevitably sellers as well.

The good news? Blasts from the past don’t always have to be your cringe worthy photo that looks like you walked straight off the set of Hairspray. There are quite a few great throwbacks that are worth revisiting. We’re “takin’ it back to the old school” to look at some tried and true ways of helping buyers and sellers alike in the high interest rate landscape of the 80’s & 90’s.


Buy/sell, rent/lease residential &
commercials real estate properties.

Old School Concept #1: Assumable Mortgages



Can you market your home with offering an assumable loan? FHA and VA loans along with many others have this option so it’s worth asking your lender directly to see if this is an option. In a market where interest rates are over double what they were just 3 years ago that is a huge difference in impacting what a buyer can afford to buy.

Old School Concept #2: Seller Financing



Many sellers are agreeing to carry a loan with interest rates lower than the current rates. This can be from equity accrued in the home or other sources of seller means. The terms of the loan will be negotiated between the buyer and seller and the loan is formed and attached to title through a local escrow company.

Old School Concept #3: Interest Rate Buy Downs

A seller can offer a credit for an interest rate buy down in their marketing of their home. A buyer can also explore this option without it being offered up front and as part of their offer ask the seller for a credit to help buy down the interest rate to make their monthly mortgage payments more manageable.

We asked Brandy Marshall a local lender with Guild Mortgage to provide some more information for us on this and as she explained, every buyer’s needs are going to be unique. Marshall said “depending on the program and down payment, this can range from a 2% to 9% credit! A potential to save up to hundreds of dollars a month. There are options for temporary buy downs and permanent buy downs. Once rates drop you can always look at refinancing to lower that rate and payment.”

“Whoomp! There it is” . Some of 90’s real estate tools that could potentially be utilized in todays landscape.

Are you a seller and want to incentivize buyers to write an offer on your home? If it’s an option, consider incorporating one of the above options in your marketing of the home to stand apart from the competition and open up your buyer pool.

Are you a buyer and don’t see these options offered in marketing? Explore them and don’t be afraid to ask the seller! They may not have considered it, but it is in fact an option they’d be willing to explore. This really is taking it back to the past to sell homes and for many, this isn’t a familiar concept.

No matter the market conditions, there are always homes being sold—the difference is adapting the methods to obtain the end result.

Written by Michelle Morriss & Nicole Zaborsky real estate consultants with Ascent Property Group in South Lake Tahoe, California.

This post was originally published on 3rd party site mentioned on the title of this site

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