I just saw an article about a real estate company that is offering to “buy down” a buyer’s mortgage rate as a part of their service offering to buyers. What is exciting to me in this approach is that it is the type of “out-of-the-box” thinking that could help stimulate more real estate activity among consumers... Understand I’m not being judgmental about whether it is a good precedent to set for the future, but I do applaud innovation, especially in these times. Buyers will certainly benefit from this type of program and it will obviously help sellers as well.

A lot of people are still on the sidelines due to basic uncertainty. However, for as long as I can remember it is the consumer who brings the economy out of the doldrums in the end and this next time will be no exception. Rates are again near historical lows and if a little added push towards lower interest would generate more closings and bring more buyers into the market, real estate will begin to find pricing support and can start to mend.

The beauty of this type of offer is that it benefits everyone if it stimulates a higher level of activity in the market. For that matter, lenders could help kick-start more action with that same type of offer. Taking a little less profit is not a foreign concept when the economy or a certain market area need stimulus. Now is the time for people to continue to innovate, and take a few risks in this market. As always, we recommend your do your research on individual properties so that you can negotiate the best possible value. Don’t just look at prices; look at flipping, foreclosure and trending stats to help you judge the overall market conditions.

Getting out-of-the-box in your thought process can be a very good thing.