Home seller discounts can include other options

Scott Weber and his real estate agent had a focused and disciplined strategy for finding his family a good deal in the city of La Verne.

All hands on deck. Scour the market for homes matching his family's wants and needs. Only make offers on properties sitting on the market for at least 30 days. Make low offers.

Just four short offers later, Weber was under contract on a very nice home for $1,050,000.

My eyes were popping when the appraisal came back at $1,200,000. I thought I misread the report. I can't recall the last time I had a client underpay by 12.5%.

Just like that, Weber starts out $150,000 ahead.

“Sellers don't want to admit it's a buyers' market,” said Weber. “Some sellers were offended (when) we didn't overbid.”

It's been an insatiable sellers' market for a good three years. Not anymore.

On Wednesday, the Mortgage Bankers Association reported its lowest level of mortgage loan applications in 22 years.

“Purchase activity declined for both conventional and government loans, as the weakening economic outlook, high inflation and persistent affordability challenges are impacting buyer demand,” said Joel Kan, MBA's Associate vice president of economic and industry forecasting.

If you are on the hunt for your dream home, a second home or an investment property, consider the broader menu of seller concessions — not just sales price.

Think big. Ask for a lot. Sellers can just say yes, no or monkey in the middle.

For example, consider a permanent rate buydown. Assume you can get a 30year fixed rate at 5.5% without points. The principal and interest payment would be $3,407 on a $600,000 loan. At 4.875%,