Seller incentive? What’s that? Aren’t we still in a market where you pay over the asking price to buy a new home? Nope, as Bob Dylan once said, "the times they are a-changin'."  As the economy has evolved so has the housing market.  Homes are staying on the market longer and sellers are more likely to help buyers with their closing costs.  So, what is a seller incentive and why does it matter?

Seller incentives are money’s that the property seller or builder gives to the buyer to help them purchase a home.  Sellers can offer any number of items as an incentive however the one that helps homebuyers the most is money towards buying down rates and lowering closing costs. 

Ivory just announced that they are offering a new seller incentive* to help you purchase a new home.  Ivory Homes is giving you 1.5% of the loan amount for you to use to cover closing costs and Momentum Loans, Ivory Home’s preferred lender, is adding an additional .5% of the loan amount to make it even sweeter! Here is an example of how this incentive could help you as a homebuyer.

You want to purchase a new home for $600,000 and you plan to put 10% or $60,000 down.  That means you will need a $540,000 loan.  On average the closing costs and pre-paid expenses associated with a loan this size are around $7000. Here is the break down.

• Sales Price: $600,000
• Loan Amount: $540,000
• Down Payment: $60,000
• Closing Costs: $7,000

One important thing to remember is that Ivory Homes cannot give you money for your down payment, the seller incentive can only go towards costs associated with purchase. Using the number listed above you would receive $8,100 from Ivory and an additional $2,700 from Momentum Loans for a total of $10,800!!!

That means that Ivory can cover all your closing costs and you can use the remaining $3,800 to buy down your interest rate. Or you can use all $10,800 to lower your rate so that you can turn back time and get a super low interest rate! With this new seller incentive there so many ways to lower your costs and lower your interest rate. But the best news is…you don’t pay a dime for any of it!

For more information and details on your specific situation, please reach out to one of our excellent Sales Consultants using our Webchat (bottom right-hand corner of your screen), come into a model or call (801) 747 - 7000!

*Starting with any contract after July 1, 2022