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Welcome, and thank you for visiting! I hope that you will consider this your resource for real estate information in my hometown, San Diego, America's finest city! I hope you enjoy your visit and explore everything my website has to offer, including information about the communities of Carmel Mountain Ranch, Poway, Rancho Bernardo, Carlsbad & homes for sale throughout San Diego County. You will also find information for homebuyers and sellers, and current real estate news. Please click on the About Us link so I can introduce myself to you, your professional San Diego County Realtor. Be sure to watch my personal video below as well.

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If you are thinking about buying or selling a home, work with a professional that listens to your needs and cares about YOU. If you value working with someone who believes that excellent, personalized service, professionalism, knowledge and enthusiasm are important, then I am the Realtor for you. I love what I do and I am passionate about helping people with their real estate needs in my home town of San Diego. Please contact me to talk about how I can help you! I have been delivering Million Dollar Service in Every Price Range to clients throughout San Diego since 1994.

Testimonials

We cannot thank you enough for your professionalism and guidance! You have been by our side since the beginning! Because of you our experience of buying and selling this house will always be positive memories! Steve and Ashleigh
Edith is the consummate Realtor. When my wife and I listed our house with her, she made some staging suggestions and actually helped with furniture rearranging. During our first Open House, we received two offers and accepted one. When that fell through, She redoubled her efforts to sell our house, and to that end, she brought us a fully qualified cash buyer at a higher price, than the first offer. Edith skillfully guided us through the process and we closed the transaction, all within 35 days of listing the house with her! Thanks Edith for all you superlative work on our behalf! Marc
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Edith's Blog

Another Type of Financing Concession

Price, condition and terms are factors that any owner must consider when marketing their home.  Price is usually the easiest to adjust to compensate for shortcomings in location or condition of the home.  Improving the condition of the property is more time consuming but updates to kitchens, baths and other things can appeal to a buyer.

One of the most overlooked marketing factors are terms which are also referred to as financing concessions.

Paying part or all a buyer's closing costs is the most common financing concession.  By doing so, the buyer doesn't need as much cash to get into the home which can be attractive to more buyers.

There is another financing concession that is not used very often in today's market but it is still allowed and can increase the marketability of a home. A temporary buy-down of the interest rate makes a lower payment for an initial period.

It is still a fixed-rate mortgage that the buyer must qualify for at the note rate and there is no negative amortization.  The seller pre-pays the interest in advance at closing so the buyer has lower payments in the initial period.

Instead of lowering the price of the home, let's say the seller has decided to offer $6,875 worth of financing concessions that the buyer can apply any way they want.  One way might be to get a 2/1 buy-down which means that the first year, the payment would be based on 2% less than the note rate of the mortgage and the second year, it would be 1% less than the note rate.  The third through thirtieth years, the payment would be the actual note rate.

On a $275,000 home with a 3.5% down payment at 5% for 30 years, the first year's mortgage payment would be figured at 3% which would be $305.76 less than normal.  The second year's payment would be figured at 4% and would be $157.65 less than normal.  The third through thirtieth years, the payment would be the normal payment of $1,424.59.

Financing Concessions.png

It would save the buyer $5,560.90 in interest in the first two years and there would still be $1,314 of the financing concession to apply toward the buyer's closing costs.

The financing concessions paid by the seller give the buyer lower payments for the first two years and less money needed for the closing cost.  An added bonus for the buyer is that the buyer can deduct the pre-paid interest the seller paid as qualified mortgage interest.

Some lenders may tell you that temporary buy downs cannot be done.  They've been around for over thirty years and can still be done today on FHA, VA and conventional loans.  Call if you need a recommendation of a trusted mortgage professional or check out a 2/1 Buydown with your own numbers.
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Edith Broyles
Phone: (858) 735-9446
Email: edith@edithbroyles.com

Coldwell Banker Residential Brokerage
16789 Bernardo Center Drive Suite B
San Diego, CA 92128
CalBRE #01186526

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Thank you for visiting today. If this is your first visit, take your time and look around. I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.

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Thank you for visiting today. If this is your first visit, take your time and look around. I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.

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