Are There Too Many Homes For Sale In St Louis

Posted by admin on Feb 25, 2010

There are a lot of Homes for Sale in  St Louis. Many buyers think it is a great opportunity to steal a home at a ridiculously low price. While prices of homes for sale in the St Louis market  are down, the “steals” are not as prevalent as many might think. Granted there are situations in which sellers are forced to sell their home, most seller are still not inclined to let their home sell below market price. While it appears the everything favors the buyer in today’s market,  there are plenty of opportunities to create a win-win situation for both the buyer and seller.  While both a seller and a buyer  are prepared to negotiate a lower sales price, rarely does either party consider the benefit or even the possibility of negotiating a lower interest rate.  While it is true that the market controls interest rates, the seller can pay discount points to lower the buyers interest rate by as much as a full 1% over the market rate.  For the seller, this often result in  a less concession than a sales price reduction and final sales price after negotiation. On an average home for sale in St Louis, a price reduction results in less than a $100 reduction in a monthly payment for a buyer. However, if a buyer elects to have the seller pay discount points instead of  or in  combination of reducing the sales price, the buyer may save several $100 on their monthly payment.  When that monthly savings is added back into the monthly payment, the buyer can easily save $10,000′s over the life of their loan.  While asking the seller to pay discount points is often a better option for most buyers, it can be costly for others. Since the amount of points a seller can pay for a buyer can vary depending on the buyers qualification and can vary day to day based on market conditions, it imperative for both buyers and seller to see a qualified mortgage consultant that can map a strategy to create the greatest benefit for all. Despite the overabundance of  homes for sale in the St Louis  market, it is a great time for a buyer and for the move up seller.  Mortgage rates are currently low (but likely to increase by years end) and prices are down.  Like any investment, be smart and develop a sound strategy for maximum benefit.