WHAT ARE YOU WAITING FOR?
IT'S TIME TO GET SERIOUS ABOUT BUYING BEFORE AN INEVITABLE RISE IN INTEREST RATES WIPES OUT YOUR ADVANTAGE.
BEYOND THE HEADLINES
Interest rates have increased by 0.6 percentage points in five weeks..
the fastest increase in two decades.
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Let’s look at the effect of
interest rate hikes and home price declines and how they might affect your finances. |
SCENARIO 1:
Home prices decrease by 5% Interest rates increase by 0.5% |
SCENARIO 2:
Home prices decrease by 10% Interest rates increase by 1.0% |
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TODAY
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SCENARIO 1
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SCENARIO 2
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Home Price:
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Home Price:
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Home Price:
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$218,900
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-5 % | $207,955
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-10% | $197,010
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Interest Rates:
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Interest Rates:
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Interest Rates:
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6.04 %
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+0.5% | 6.54 %
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+1.0% | 7.04%
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Your Payment
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Your Payment
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Your Payment
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$1,054
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$1,056
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$ 1,053
|
Buyers Guide in TODAY MARKET:
1. Get E-Mail Listings and Updated.
· 95 % of buyers start a home search online, but buyers are unaware that they might be viewing data that is out dated. Agents sometime leaving expired, sold listing as active, hoping for ad calls. To AVOID wasting your time, ask your agent to e-mail you so you can receive daily MLS listing which will include new, price reduction, sold, pending. This is the best way to gain access to the same data agents receive.
2. Look up 1 miles radius Price Reduction.
· If you like most buyers you’re probably offer less than asking price, it’s just human nature. But if your are low-balling the offer, you will be unsuccessful getting offer accepted if the home was just listed. Get regarding for a counter offer. What you should do is ask your realtor to do a CMA.
3. Request a Comparable Sales (CMA)
· If you find a home you want to purchase, ask your realtor to do CMA of last 6 month day in 1 miles radius .
The list should contain the following specifics:
· Active Listings , Pending Sale, Sold
Also
Also
· Property Address, Age, Square Footage, Lot Size, Bedrooms & Baths, Sale Price
4. Renegotiate
· After the home inspection if you find major repair that is unacceptable you should renegotiate your sale price on the table, most home owner will entertain this. However, if the repairs are minor, you might want to ask for a credit. Caution: don't ask for a price reduction if the repairs were evident when you first saw the home or the seller might not be willing to negotiate with you.
5. This is buyer market Ask for More!
· Sellers realize that in buyers' markets, often they have to give a little something extra to the buyers to entice a sale. Don't be afraid to ask for a home warranty protection plan that covers you in the event an appliance breaks down or the plumbing or heating malfunctions. Normally these plans protect you for one full year from the date of closing.
6. Time is an essence.
· This is buyer market if you made offer tell the agent the offer will expire in a 3 days, don’t let the seller talk to uncle harry, co worker who know everything about real estate. There are lot more homes on the market and you deserve a fast answer.
IT’S CALLED A BUYER’S MARKET FOR A REASON
