The Luxury Realtor Associate, among the most accomplished at her brokerage and in Hawaii, has shared a new wave of techniques to manage financial challenges in a changing market.

Honolulu, Hawaii--(Newsfile Corp. - September 12, 2024) - Homeownership remains a cherished goal for many, but financial hurdles can sometimes make this dream appear out of reach. Recent trends show that the economic burden of owning a home grows heavier as mortgage rates climb.

Teondra Mills, a Hawaii-based luxury Realtor Associate with RE/MAX Honolulu

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8798/223038_88d93b5ab46b99f7_001full.jpg

There is a vast wealth gap and homeowner equity is one of the most significant contributors to wealth generation. This discrepancy is most keenly felt among Black citizens. An increase in homeownership in the Black community in Hawaii can reshape the lives of Black residents because it can help build wealth, improve stability, and keep Black families and businesses on the island.

Luxury Realtor Associate Teondra Mills, based in Hawaii with RE/MAX Honolulu, is embracing a new approach to further this goal. By negotiating seller concessions of 1-3% of the purchase price, she helps buyers manage their money more effectively through a 2-1 buydown or by covering closing costs. Crucially, it gives people from minority communities a way into Honolulu, which was named the best city in the US to live in for two consecutive years in a row by the Economist Intelligence Unit's Global Liveability Index as the highest-ranking U.S. city.

Danielle Wills, Executive Director of the Hawaii Black Chamber and Commerce said "An increase in Homeownership in the Black community in Hawaii can totally reshape the lives of black residents because it can help build wealth, improve stability, and keep black families and businesses on island."

Danielle went on to mention, "There are many Black families that have embraced Hawaii and its beauty and want to live here permanently, but with the high cost of living and with home ownership being one of the biggest disparities between many ethnic groups on the island, it is easy to get priced out of paradise. There is a huge wealth gap and Homeowner equity is one of the most significant contributors to generating wealth."

A modest 1% increase in mortgage rates can significantly impact monthly payments, transforming a comforting investment into a stressful financial strain. This shift reduces the purchasing power of many potential buyers, turning homeownership into a daunting challenge. In response to this, innovative solutions like seller concessions are gaining traction.

"My goal is to make sure that each decision leads to not just a successful outcome, but a truly joyful one," Teondra explains. "I want to see my clients find the home of their dreams while building wealth, creating generational wealth to pass down to their kids, and generating home equity."

Unmoving properties on the market often provide fertile ground for negotiating seller concessions. For buyers, this can mean significant financial relief. For instance, a 2-1 buydown can lower mortgage rates and monthly payments initially, offering a softer financial landing in the first year, a moderate increase in the second year, and stabilizing at a final rate in the third year. This strategy eases entry into homeownership and sets buyers up to refinance later when rates drop, thereby preserving their long-term financial health.

Moreover, seller concessions can be applied directly to closing costs, which can be a considerable upfront expense. By reducing or eliminating these charges, buyers can allocate their resources more effectively, putting more towards their down payment or early mortgage installments. For Teondra Mills, whose passion for helping clients achieve their aims has driven a nearly two-decade career in real estate, these methodologies are part of a broader commitment to client success and satisfaction.

Seller concessions aren't just advantageous for buyers; they can also be valuable for sellers, particularly where rising interest rates have tempered demand. When homes linger on the market, sellers often face the tough choice of reducing their asking price to attract buyers. However, significant decreases, such as by $20,000 or more, can heavily impact their profit margins.

"A rate buydown provides an alternative that's typically more cost-efficient," Teondra elucidates. "While it still reduces the seller's profit, it's usually not as damaging as a price reduction."

The appeal of seller concessions, particularly in a high-rate environment, lies in their ability to create a mutually beneficial scenario. Buyers gain much-needed financial relief and flexibility, which can make the difference between securing a home or continuing to rent. On the other hand, sellers can move their properties faster and with less financial sacrifice than through steep price reductions.

Teondra Mills, a recognized leader in luxury real estate, emphasizes that these strategies fit into a comprehensive approach. With her background in managing multi-million-dollar properties and specialized knowledge of pricing and market trends, Teondra holds expertise that gives her insight some weight. Her accolades, including being named one of the Top 5 Realtors Under 40 in Hawaii by RE/MAX and nomination for the Aloha Aina Award, validate her informed advice.

About RE/MAX Honolulu

RE/MAX Honolulu is a leading real estate agency specializing in luxury properties. It offers top-level service and expertise to clients in Hawaii. With a dedicated team of experienced professionals, RE/MAX Honolulu provides comprehensive real estate solutions tailored to buyers' and sellers' unique needs.

SOURCE: Two Comma PR

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223038