THE 321ADVANTAGE is as simple as 1-2-3!

1. Rather than offering a STANDARD Price Reduction, the seller provides a credit at closing to discount the buyer’s mortgage interest rate. (This is an option that can be attached to ANY mortgage.) It creates a substantial financial impact for the buyer yet doesn’t cost a significant amount for the Seller.
2. Temporary interest rate buydowns come in various shapes and sizes. 3-2-1, 2-1, 1-0, and 1-1-1… Buydowns are easy to understand if you consider them as a credit that is provided by the seller to the buyer at the closing. This money is placed in an FDIC insured escrow account and a portion of the buyer’s payment is withdrawn from this account on a monthly basis to subsidize his payment.
3. This monthly subsidy allows the homebuyer to enhance affordability and gradually ease into homeownership. This system offers a conservative, stable alternative to high-risk, exotic, toxic financing programs that have contributed to the current housing crisis.

For Example: If a buyer is approved for a $400,000 mortgage at 5.99% and the seller offers to subsidize a 3-2-1 Buydown, the following scenario is created:

5.99% Current 30 Year Fixed Rate (5.99/$1,000)

3-2-1 BUYDOWN
Year 1    2.99% ($4.21/$1,000) Payment for the 1st year: $1,680/month
Year 2    3.99% ($4.76/$1,000) Payment for the 2nd year: $1,901/month
Year 3    4.99% ($5.36/$1,000) Payment for the 3rd year: $2,136/month
Year 4 - 30 at 5.99% Payment: $2,383/month

The 3-2-1 buydown creates the most substantial reduction in the borrower’s payment in the first year, but also requires the largest seller credit. The 321ADVANTAGE is a highly conservative, yet extremely impactful alternative to standard price reductions. The 321ADVANTAGE offers a safe and sound system for Buyers so that they are able to comfortably and confidently ease into homeownership.

Click here to see why standard price reductions are ineffective..

THIS DOES NOT REQUIRE: holding a mortgage, mortgage assumption, or a lease with an option to buy arrangement. The buyer applies for his financing through a lender of his choice.

THIS DOES NOT REQUIRE that the Seller and Buyer maintain any relationship after they shake hands at the closing (unless of course it’s their choice.)

HOW DOES IT WORK?

321ADVANTAGE is an independently owned and operated company. We represent the SELLER. Just as a Seller would hire a Home Stager to make his / her home more appealing visually…Savvy Sellers join the 321ADVANTAGE NETWORK so that their home becomes more attractive financially.

The Seller joins our network for a nominal fee, and has access to the resources and expertise to sell with confidence.We advocate that the seller maintains his price position while offering incentives through seller-funded assistance. Sellers can legally offer incentives up to 9% of the Sale Price/Appraised Value of the property.

321ADVANTAGE has devised a unique selling system that gives the SELLER a competitive edge while alleviating the risk for the Buyer in Today’s volatile market. We encourage Buyers to enhance affordability and improve market psychology through a temporary interest rate buydown. Temporary BuyDowns have been available for more than 20 years. Normally the lender or the borrower funded the buydown and sometimes a builder had arranged with a local bank to offer a temporary Buydown. 321ADVANTAGE advises the SELLER to offer to reduce a Buyer’s monthly payment through a Temporary Interest Rate Buydown.

321ADVANTAGE understands that Interest Rates dramatically impact the housing market. Many interest rates, particularly those for mortgages, are tied to the benchmark LIBOR, meaning that changes in this key index impacts the housing market significantly. Even small changes in interest rates can significantly impact monthly payments and the Cost of Borrowing which directly impacts the total cost of buying a new home. As interest rates increase, it becomes more expensive to obtain a mortgage on a home. Higher interest rates are likely to cause a decrease in demand for housing due to these rising costs. Conversely, lower interest rates can make borrowing money cheaper and stimulate demand in the housing market.

321ADVANTAGE has created this category by packaging this unique system that is all encompassing- We are a universally neutral, independent organization, so that we do not discriminate. We work with all Realtors, all banks, brokers, bankers… Because we are NOT affiliated with any one Realtor or Lender we avoid a conflict of interest while representing the SELLER. We represent motivated sellers who are willing to think outside the box. Educated sellers realize that price reductions do very little to lower a buyers monthly housing payment or expand their pool of potential buyers. 321Advantage Sellers who join our network offer a winning advantage. It’s a great way to increase your market potential WIN WIN WIN WIN for Sellers, Buyers, Realtors and the Neighborhood!