Client Success Story: How Savvy Buyers Outsmarted High Mortgage Rates

Liz Kroft  |  November 7, 2023

Client Success Story: How Savvy Buyers Outsmarted High Mortgage Rates

If you've been keeping up with recent articles on our blog and social media, you're likely already aware that today's real estate market can offer incredible opportunities for buyers. You might be wondering how this could be the case, especially with the current high mortgage rates, the highest we've seen in decades. Well, the answer lies in the very thing everyone is complaining the most about.

In this client success story, we'll explore how our co-founder, Liz Kroft, helped buyers seize unique opportunities in the real estate market by strategically leveraging high mortgage rates, ultimately leading to substantial savings and instant equity in their new home.

The Rise of Buyer Opportunities

In a housing market characterized by high mortgage rates, a unique situation unfolds—there's less competition among buyers. With fewer potential buyers submitting offers on homes, this market scenario can provide a distinct advantage. You gain the power to negotiate savings that can sometimes counterbalance the increased financing costs.

A Recent Success Story

Let's illustrate this with a recent success story from one of Liz Kroft's clients. The property they were interested in was located in a highly sought-after Santa Cruz neighborhood. In recent years, a home like this would have received dozens of offers within a few short days - perhaps sight unseen for some buyers.

While the property had deferred maintenance and needed updates, this alone wouldn't have deterred potential buyers in the past, given its incredible potential and low inventory of homes to choose from. However, today's market has a smaller buyer pool, resulting in decreased demand for such properties.

The Offer Price

Initially priced beyond the client's preferred budget, they took a closer look at this home after it was listed for sale for several weeks. The decision was made to go for it, and their offer was accepted at 7% below the asking price. 

|  Pro Tip: In today's market, don't overlook homes that initially seem out of your budget, especially if they've been listed for a while.

If we rewind to when rates were lower and competition was more fierce, this home likely would have sold for $50,000 - $75,000 above asking instead.

Sellers Offering Repairs

In a market where buyer demand is softening, more sellers are open to providing concessions to attract potential buyers. In this case, the seller offered to cover $14,000 for essential electrical upgrades and repairs, a significant cost-saving advantage the buyers.

Negotiating Credits

While more competitive markets often require buyers to waive contingencies to be in the running, Liz's clients had a considerable inspection contingency in place here. This allowed the opportunity to conduct thorough inspections and investigations of the home. As a result, they successfully negotiated $10,000 in credits towards closing costs. This translates to valuable cash savings, which they can use for future home updates.

|  Pro Tip: In some cases, this credit can be used to buy down (lower) your rate.

Appraisal Value Surpasses Expectations

As mentioned earlier, the buyers were able to retain their contingencies, including the appraisal contingency. To their delight, they didn't need it, as the appraisal value exceeded the contract price by a substantial $20,000. This means instant equity in their new home.

|  Did You Know: In competitive markets, buyers often remove appraisal contingencies, potentially overpaying in the eyes of appraisers and becoming liable for the difference between the appraised value and their offer price.

Seize the Opportunity

In a market with lower rates and increased buyer demand, these homebuyers likely could not have secured all of these wins, and such sizable ones at that.

Are you ready to embark on your own home-buying adventure? Allow us to guide you on how to take advantage of today's real estate market while your competition remains on the sidelines. Don't miss out on these incredible opportunities. Contact us today, and let's get started.

Recent Blog Posts

Stay up to date on the latest real estate trends.


Secrets Revealed: How This Scotts Valley Home Went Into Contract In Under A Week

Discover the real estate magic that filled open houses with 26 groups in just one weekend, surpassing the Scotts Valley average of 31 days on the market. Explore the s… Read more

Market News

Foreclosure Activity Is Still Lower than the Norm

Have you seen headlines talking about the increase in foreclosures in today’s housing market? If so, they may leave you feeling a bit uneasy about what’s ahead. But re… Read more


Local Charm, Global Impact: Sol Property Advisors Redefines Boutique Real Estate

Boutique real estate excellence in Santa Cruz County and Monterey Bay. Sol Property Advisors combines local charm with national and global reach, offering personalized… Read more


Is It Time To Buy a Smaller Home?

Life events can have a major impact on what you need from your home, and retirement is one of the biggest changes many of us face. This period of your life can mean do… Read more


A Seller's Guide to Navigating Today's Real Estate Environment

Unlock success in today's dynamic real estate market with expert seller strategies for attracting buyers today. Navigate market shifts, adapt to changing buyer needs, … Read more


Exploring 401(k) for Your Home Purchase: Wise or Risky?

Pondering the prospect of using your 401(k) for a home down payment? Our latest blog explores the implications, providing insights into the potential risks and viable … Read more

Welcoming Guillermo: A New Addition to Our Real Estate Team

We're thrilled to introduce you to the latest member of our real estate family, Guillermo Guadron – your dynamic partner with a rich tapestry of experience.


Client Success Story: How Savvy Buyers Outsmarted High Mortgage Rates

If you've been keeping up with recent articles on our blog and social media, you're likely already aware that today's real estate market can offer incredible opportuni… Read more

Homeownership Tips

What Are Accessory Dwelling Units and How Can They Benefit You?

Are you searching for your dream home but struggling to find one that aligns with your budget? Maybe you're already a homeowner looking for extra income or a place to … Read more

Say Hello

You’ve got questions and we can’t wait to answer them.