321ADVANTAGE represents the SELLER. Just as a SELLER would hire a "Home Stager" to make his home more appealing visually, he joins the 321ADVANTAGE Network to ensure that his home is 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 should maintain 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.

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.)

321ADVANTAGE has devised a state-of-the-art  selling system that helps to alleviate the risk of buying 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. As far as we know, 321ADVANTAGE is the first company to offer this Marketing Strategy to the masses so that all Sellers, all Buyers, all Realtors and all Lenders can participate and benefit.

321ADVANTAGE has created this category by packaging this unique system that is all encompassing. We are a universally neutral, independently owned and operated organization, so that we do not discriminate. We represent the Seller while working with all Realtors, all Lenders and all Buyers. 321ADVANTAGE Sellers are motivated sellers who are willing to think outside the box. They  realize that price reductions of 10’s of thousands of dollars do very little to lower a buyers monthly housing payment or expand his pool of potential buyers. 321Advantage Sellers who join our network offer a winning advantage. It’s a great way to increase your market potential and it’s a WIN WIN WIN WIN for Sellers, Buyers, Realtors and the Neighborhood!

321ADVANTAGE understands that Interest Rates dramatically impact the housing market. Market data indicates that the primary concern for a Buyer when purchasing a home, after location and schools, is the monthly payment. 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. Lower interest rates can make borrowing money cheaper and stimulate demand in the housing market. Ultra-low rates give Buyer’s a competitive edge and make them feel confident about their decision to purchase.

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. Temporary interest rate buydowns come in various shapes and sizes. 3-2-1 , 2-1 , 1-0, 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 insured escrow account and a portion of the buyer’s payment is withdrawn from this account on a monthly basis to subsidize his payment. 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 financing programs that have contributed to the current housing crisis.
There are NO Surprise Resets or adjustments. The Buyer knows exactly what his payment is going to be for the life of the loan. The reduced payments in the first few years allow the Buyer to comfortably ease into homeownership.

For Example: If a buyer is approved for a mortgage (through his lender of choice) at 5.99% and the seller offers to subsidize a 3-2-1 Temporary Interest Rate Buydown, the following scenario is created:

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

3-2-1 BUYDOWN
Year 1: 5.99% - 3 = 2.99% ($4.21/$1,000) Buyer’s portion of the payment.

Year 2: 5.99% - 2 = 3.99% ($4.76/$1,000) Buyer’s portion of the payment.
 

Year 3: 5.99% - 1 = 4.99% ($5.36/$1,000) Buyer’s portion of the payment.
 

Year 4 through 30 = 5.99% Buyer makes the full payment (no subsidy).

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… in comparison to a 2-1 Buydown or a 1-1 Buydown. The 321ADVANTAGE offers a safe and sound system for Buyers. It  helps them to "feel good" about their purchasing decision while comfortably and confidently easing into homeownership.

Next: Benefits to the Buyer