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The Effect Of A Standard Price Reduction On A Potential Buyer’s Monthly Payment.

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The Effect Of A Standard Price Reduction On A Potential Buyer’s Monthly Payment.

The Effect Of A Standard Price Reduction On A Potential Buyer’s Monthly Payment.

If your buyer is pre-approved for a 30 year fixed rate mortgage at 6.0% and you reduce your price by $10,000, the buyer’s payment is lowered by ONLY $59.65/month…at 7% the monthly payment is reduced by $66.14.

A $30,000 reduction at 6.5% lowers a buyer’s monthly payment by $188.59… A $50,000 reduction at 6% lowers a buyer’s monthly payment by $298.28.

This chart depicts the effect of a standard price reduction on a potential buyer’s monthly payment.

Price Reduction	6%	6.5%	7%
$10,000	$59.65	$62.86	$66.14
$20,000	$119.30	$125.73	$132.28
$30,000	$178.95	$188.59	$198.43
$40,000	$238.60	$251.46	$264.57
$50,000	$298.28	$314.33	$330.72
$60,000	$359.73	$379.24	$399.18
$70,000	$419.68	$442.44	$465.71
$80,000	$479.64	$505.65	$532.24
$90,000	$539.59	$568.86	$598.77

THE NUMBERS DON’T LIE!
The impact of a Standard Price Reduction is minimal

SOOOOOOO……It’s time to tweak the system!

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