The Sneaky Mid-Transaction Negotiation Trick to Lower Interest Rates

Now, this is happening a lot:

Buyers are getting skittish about interest rates, especially when they're in the middle of a transaction and their interest rates floated up because they didn't lock in the beginning.

See, a lot of buyers are gamblers. And they're optimists. So when they come into the transaction, they don't necessarily lock right out of the gate and they're gambling that the interest rates will come back down or float back down. But that gamble has not been a good gamble for the last several months.

And so interest has climbed, climbed, climbed. But if you do have that situation where you have a buyer that's had an interest rate that went beyond what they were expecting, it can create a mid-transaction negotiation.

So what you can do is you can come back to the other side and say, "Hey, we have a buyer that was completely excited about buying your house. Unfortunately, interest rates have kind of gone through the roof and they've kind of been priced out. They had a budget of $2,000 a month, and now their payment's gonna be $2,400 a month (or whatever the number is).

They wanna buy the house. But we wanna revisit this because we would like to see if there's some place where we can find some middle ground. The buyers wanna come up a little bit hoping the seller might be willing to come down a little bit on price so we can get that payment back down to a reasonable level. Otherwise, we just don't know if we're gonna be able to complete the transaction."

Now, you would have to do this during your due diligence period. Otherwise, if the sale wasn't subject to your interest rate, then you know, that wouldn't be a valid reason for the negotiation. But if you're within your due diligence period when you're due within your inspection period, anyway, that could be an opportunity to have that conversation.

Of course, these are all conversations and strategies you wanna run by your local and supervising broker, your principal broker. But I'm telling you, these conversations are happening all the time.

It happened for me personally, I'm having these conversations because it's truly valid and it creates some challenges in buying even investment properties. But most sellers are savvy. And most other listing agents are savvy. They don't wanna take their homes and put them back on the market because the market's deteriorating a little bit.

They're gonna want to get this property sold. And people are smart, they're savvy, they want to make deals. And so do buyers and so do sellers.

So just have those conversations out there and it will lead to more transactions closing for you.

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