Would you Rather –  Home Buyer Edition

Would You Rather: Homebuyer Edition – Low-Interest Rate vs. Higher Negotiation Power

Transcript

Ryan Hillard: We’re going to call this “Would You Rather: The Homebuyer Edition.” In this version of “Would You Rather,” we have two options. 

1. The first option is: would you rather have a lower interest rate that is going to look somewhere, let’s just say maybe down in the low 3’s or closer to 3%, but you have to give up your inspection rights, you don’t get to negotiate at all, and you’re going to have to look at multiple homes, submit multiple offers, probably get rejected a lot before you do finally go under contract if you’re willing to endure the market that long. And, just for fun, as a kicker, you’re going to have to pay an additional $50,000, $100,000, $150,000, maybe even more, over the asking price of a home. And, fully guarantee that amount if it doesn’t appraise. 
2. If we look at option B: would you rather have a higher interest rate, maybe something to the mid to upper 6’s, but you’re more likely to go under contract on your first, second, or third offer if it’s well-written, and you’re able to negotiate on things like possible the purchase price or maybe seller concessions that you can use to pay closing costs or help buy down the interest rate. 

Ryan Hillard: Which would you rather do? Let me know in the comments!