Many people fall out of the home buying market when interest rates start to go up. This is often a mistake. Many of the best mortgages deals become available when lenders are competing for new business and sellers are competing within a smaller buyer pool. You just have to know how to keep the costs down in order to counter the higher interest rates.

One of the best tricks is the buy-down. In a buy-down, a fee is paid at the closing to get a lower interest rate. In a soft market, an anxious seller may be lured into to paying all or part of the buy-down. Another approach is to get the seller to pay some of closing costs, thus lowering the amount of cash a buyer needs to close. Frequently the seller's costs can be used as a write-off by the buyer. Always consult with your tax advisor if you are considering such an arrangement.

If the market is softening due to rising or higher rates, the price itself becomes an area where a buyer may be able to save a lot of money on a house through skillful negotiating. Lower prices mean lower loan amounts, so don't be discouraged by higher rates--use them to your advantage.

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Michelle Koch
RE/MAX Associates
6629 S 1300 East
Salt Lake City, UT 84121
MOBILE: 801-641-8724
OFFICE: 801-365-3310
FAX : 801-365-3311
Email: Michelle@MichelleKoch.com

Since my Real Estate career started in 1996 I have enjoyed working with over 400 families buying or selling their homes; many transfering from other states like myself. I came to Utah from Maine to attend the U of U and this past time in 1994 to make Utah my permanent home. I worked in the Hospitality Industry for 15 years specializing in Luxury 5 Star Hotels. That management foundation has provided me with the necessary background to service my Real Estate clients with excellence and dedication - "Bringing 5 Star Service to Real Estate". My husband, Rob Davis, joined me in real estate in 2002 and together we have a very successful real estate company and are proud to work for RE/MAX Associates.

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