A luxury real estate brokerage associate is joining his brokerage firm as one of Hawaii’s best and brightest, sharing a new set of techniques for managing the financial challenges of a changing market.
Honolulu, Hawaii–(Newsfile Corp. – September 12, 2024) – Homeownership is a cherished goal for many, but financial hurdles can make the dream seem out of reach.Recent trends show that the financial burden of homeownership is becoming heavier as mortgage interest rates rise.
Teondra Mills, a Hawaii-based luxury real estate associate with RE/MAX Honolulu
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The wealth gap is large, and homeowner equity is one of the largest contributors to wealth creation. This gap is felt most acutely among Black citizens. Increasing homeownership in Hawaii’s Black communities has the potential to transform the lives of Black residents by helping build wealth, increase stability, and keep Black families and businesses on the islands.
Teondra Mills, a Hawaii-based luxury real estate associate with RE/MAX Honolulu, is taking a novel approach to achieving this goal. By negotiating seller concessions of 1-3% of the purchase price, she helps buyers manage their finances more effectively through 2-to-1 buydowns and contributions to closing costs. Importantly, this approach paves the way for members of underrepresented communities to relocate to Honolulu, which has been named the most livable city in the U.S. for two years in a row and is the highest-ranked U.S. city by the Economist Intelligence Unit’s Global Livability Index.
“Increasing homeownership in Hawaii’s black communities has the potential to completely transform the lives of black residents by building wealth, increasing stability and keeping black families and businesses on the islands,” said Daniel Wills, executive director of the Hawaii Black Chamber of Commerce.
Danielle continued, “There are many Black families who are attracted to Hawaii and its beauty and want to live here permanently, but it’s easy to be pushed out of paradise by the high cost of living and homeownership being one of the biggest disparities among many ethnic groups on the islands. The wealth gap is large, and homeowner equity is one of the most important drivers of wealth creation.”
A small 1% increase in mortgage rates can have a significant impact on monthly payments, turning a comfortable investment into a stressful financial burden. This change reduces the purchasing power of many potential buyers, turning homeownership into a daunting challenge. In response, innovative solutions such as seller concessions are gaining traction.
“My goal is to ensure that each decision leads not just to success, but to an outcome that I’m truly happy with,” explains Theondra. “I want to see my clients build assets, create generational wealth to pass on to their children, and find their dream home while increasing their home equity.”
Off-market properties are often ripe ground for negotiating seller concessions. For buyers, this can mean significant financial relief. For example, a 2-1 buydown can lower mortgage interest rates and monthly payments initially, resulting in a softer financial landing in year one, a gradual increase in year two, and stabilizing at a final rate in year three. This strategy eases entry into homeownership and allows buyers to refinance when interest rates drop, thereby preserving their long-term financial position.
Additionally, seller concessions can be applied directly to closing costs, which can be substantial upfront expenses. Reducing or eliminating these expenses allows buyers to allocate resources more effectively toward a down payment or an early mortgage installment. For Theondra Mills, who is passionate about helping her clients achieve their goals and has spent nearly two decades in the real estate industry, these methodologies are part of a broader commitment to client success and satisfaction.
Seller concessions are not only advantageous to buyers, but also to sellers, especially when rising interest rates dampen demand. When homes are off the market, sellers are often faced with the tough choice of lowering their asking price to attract buyers. But a big price reduction of $20,000 or more can significantly impact profit margins.
“A rate buydown typically offers a more cost-effective alternative,” Theondra explains, “and while it still reduces the seller’s profits, it usually doesn’t hurt them as much as a price reduction would.”
Seller concessions are attractive because they create a win-win scenario, especially in a high interest rate environment: Buyers get much-needed financial relief and flexibility that could mean the difference between holding on to their home or continuing to rent, while sellers can sell their property faster and with less financial strain than with a deeper price reduction.
Teondra Mills, a recognized leader in the luxury real estate industry, emphasizes that these strategies fit into a comprehensive approach. With experience managing multimillion-dollar properties and expertise in pricing and market trends, Teondra has the expertise to lend weight to her insights. Her awards, including being named one of Hawaii’s Top 5 Realtors Under 40 by RE/MAX and being nominated for an Aloha Aina Award, back up her informed advice.
About RE/MAX Honolulu
RE/MAX Honolulu is a leading real estate agency specializing in luxury properties, providing top-notch service and expertise to clients in Hawaii. With a dedicated team of experienced professionals, RE/MAX Honolulu offers comprehensive real estate solutions tailored to the unique needs of buyers and sellers.
Source: Two Comma PR
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