Stop Waiting on Rates: 4 Ways to Get Buyers Off the Sidelines
- 20 hours ago
- 2 min read
As we move into the fall market, one topic continues to dominate conversations with buyers and sellers alike: affordability.
For much of the year, many prospective buyers have been waiting on the sidelines, hoping mortgage rates would fall significantly below the mid-6% range. While rates have eased from their highs, the dramatic drop many expected simply hasn't happened.
But focusing only on interest rates overlooks what's actually changing in today's housing market. Affordability isn't just about the rate, it's about the playbook buyers use to get in the door. Two strategies worth putting in front of clients right now: multifamily "house hacking" and low-down-payment financing.
For budget-conscious buyers, a 2-to-4-unit multifamily property can do something a single-family home can't: generate income. Buyers can use that income to offset, or sometimes fully cover, their mortgage payment. Current financing guidelines make this more accessible than a lot of buyers realize, letting owner-occupants get into a multifamily property with a down payment in the same range they'd use for a single-family home. Not everyone is cut out to be a landlord, yet it's a good conversation starter for anyone assuming ownership is out of reach.
Private mortgage insurance often gets a negative reaction from buyers, but reframing it as a temporary bridge rather than a permanent penalty can change their perspective. Remind hesitant clients that PMI gets them into a home years sooner than waiting to save 20% down. Plus, they can go ahead and start building equity. Otherwise, if prices continue to rise, homeownership can feel further and further out of reach.
This can also be true when applied to multi-unit properties. Many buyers still don't realize owner-occupants can leverage options as low as 3% to 5% down on singles and even 2-to-4-unit properties, drastically lowering the upfront cash barrier for a home of their own.
Multifamily homes, and low-down payment options open the door for a lot of buyers, but they're not the only tools available. Once a client is engaged and thinking creatively about affordability, these two conversations are worth having as well:
Trade the “dream home” for a smart starter. Encourage buyers to expand their search. They may find a better option hiding in plain sight, either as a smaller home or in a nearby market with a lower price point. By widening the net, you can offer clients more paths to an affordable, realistic home purchase.
Negotiate seller concessions. Today's more balanced market leaves room to ask. Seller credits, repairs, and rate buydowns can meaningfully lower a buyer's payment. Such concessions are worth writing into more offers than buyers might expect.
Combined, these strategies can help homebuyers find affordable, realistic paths into today's housing market, even as rates hold steady.