If you read all the stories about property you would think first time buyers have no chance. Okay, the market isn’t a good today as it was a few years ago. The prices are a lot higher and outstrip the average cost that an average family can afford. Sounds bad, right? Well, it isn’t all doom and gloom. Did you hear that first time buyers? There might be ways that you can afford a property after all; you just need to know the tricks of the trade. Better yet, you need to know the incentives that banks and sellers use to get more buyers to invest. Fortunately, you have come to the right place.
Buy Down Interest Rates
Almost every first time buyer needs a mortgage to afford a property. Unless you have a rich uncle or are related to royalty, you will need to take a trip to the bank. Mercifully, banks know this and have measures in place to make the process cheaper. The main one is known as a ‘buy down interest rate’, and it locks in cheaper repayments over the course of your mortgage. It does that by giving you the opportunity to pay more upfront for lower repayments in the future. So, if the bank offers you 3%, you can pay 1% upfront and get a locked in rate of 2.75% for the mortgage’s duration.
Credit For Maintenance
It is not just the banks that offer incentive schemes. Private sellers will also consider the right incentive if it is in their interest. Taking money off the final price doesn’t sound like it would be in their interest but that isn’t always the case. Selling a property isn’t easy work, and they will consider giving you credit if it makes their life easier. For example, you will want maintenance work carried out before you sign. They don’t want to do it, of course, but you can ask for credit and make it your problem. The extra money is worth the lack of hassle as well as pushing through the sale.
High Bonus Or Commission
A letting agent has a duty to their client, but they are also motivated by money. It isn’t a bad thing because everyone wants more money, but it is something to note. If you are aware of the properties with high commission rates, you can use it to your advantage. These are the properties that agents want to sell more than most because they stand to make a fortune. As a result, you can bargain harder in the knowledge that they won’t scare as easily. Why would they? They stand to make a lot of money even if they have to give you a better deal. Everyone wins in this situation, which is why you should keep your ears to the ground.
Letting agents will provide you with plenty of extras if it helps push through a sale. McKee Homes will help you decorate your home with no closing costs while other companies help you move, for example. The reality is that they have a lot of properties and they want them gone. To do that, they will throw in extras that make a difference to the average buyer.
As you can see, it isn’t the end of the world for first time buyers.