Hello we are Scott and Caroline Doan of Realty Executives. As summer winds down, have observed an exciting shift in the local real estate market—buyers starting to become aware of end-of-summer deals and creative financing options.
We are seeing how creative financing strategies, such as buydown options, are encouraging buyers to act now and take advantage of current price reductions. Later on once interest rates decrease the buyer can refinance. In fact many lenders are willing to refinance the loan at no charge, further benefiting buyers.
Here’s how a buydown works:
A buydown is a financing strategy where the buyer pays upfront points or fees to reduce the mortgage interest rate, resulting in lower monthly payments. Essentially, the buyer "buys down" the interest rate to make the loan more affordable.
Two common types of buydowns:
-Permanent Buydown: The buyer pays points at closing to secure a lower interest rate for the life of the loan. For example, paying upfront might reduce the rate from 4% to 3.5%, saving money over the long term.
- Temporary Buydown: The interest rate is reduced for a set period, typically the first few years. A common option is a **2-1 buydown**, which lowers the rate for the first two years before adjusting to the full rate. This can help buyers manage their initial payments and establish financial stability.
Which buydown is most attractive today?
In our current market, many sellers are willing to negotiate by offering concessions that help buyers opt for a temporary buydown. The **2-1 buydown** is especially popular because it requires less money and makes monthly payments more manageable during the early years of the mortgage. This can help buyers qualify for loans more easily.
But why are the end-of-summer deals so aggressive this year?
Living in Southern California, summer is traditionally a busy season for real estate. However, this summer has been quieter than usual. Properties that are selling tend to stand out— because they’re priced below comparable homes, feature special attributes like views or larger lots, are meticulously maintained, and many sellers are offering concessions.
Why does this matter? Because these trends are not just passing fads—they’re creating buzz, increasing competition, and opening new doors for savvy participants. Our concern, is for buyers waiting for the “perfect moment.” Having nearly 30 years of experience, we’ve seen this before: buyers tend to enter the market only when there's a buying buzz. The problem? The initial buyers, who jump in early, often secure the best deals, leaving subsequent buyers to contend with shrinking inventory and fewer opportunities. As inventory diminishes, the latecomers might feel regret—thinking, “If only I had purchased six months ago.” Don’t let that be you. If you are in a market like ours and you’re ready to make a move, now is truly the time to act.
We’d love to hear your thoughts:
What trends do you anticipate shaping the next six months in real estate?
How are you leveraging end-of-summer deals or creative financing strategies?
What new opportunities are emerging as summer comes to a close?
Let’s start the conversation—your insights could help others navigate this evolving landscape!
If you're interested in buying or selling real estate in or around Temecula California connect with us easily through our digital business card! Stay updated and get in touch anytime — click here to access our contact information and professional profile. https://instacard.co/Scott-Doan/home
Thank you,
Scott and Caroline Doan Realtors®
(951) 541-3498
Realty Executives
28581 Old Town Front St. #100
Temecula, Ca. 92591
DRE#02248461
