** Sell a Home **
Sellers Have Incredible Leverage in Today’s Market
With some lenders’ mortgage rates recently climbing above 3% for the first time in months, serious buyers are more motivated than ever to find a home before the end of the year. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), puts it best, saying:
“Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year.”
But the sense of urgency they feel is complicated by the lack of homes for sale in today’s market. According to the latest Existing Home Sales Report from NAR:
“From one year ago, the inventory of unsold homes decreased 13%. . . .”
What Does This Mean for Sellers Today?
With buyers eager to purchase but so few homes available, sellers who list their houses this fall have a tremendous advantage – also known as leverage – when negotiating with buyers. That’s because, in today’s market, buyers want three things:
- To be the winning bid on their dream home.
- To buy before rates rise.
- To buy before prices go even higher.
Your Leverage Can Help You Negotiate Your Best Terms.
These three buyer needs give homeowners a leg up when selling their house. You might already realize this leverage enables you to sell at a good price, but it also means you can negotiate the best terms to suit your needs.
And since buyer demand is still high, there’s a good chance you will get offers from multiple buyers who are willing to compete for your house. When you do, look closely at the terms of each offer to find out which one has the best perks for you.
If you have questions about what’s best for your situation, your trusted real estate advisor can help. They have the expertise and are skilled negotiators in all stages of the sales process.
Today’s buyers are motivated to purchase a home this year, and that’s great news if you’re thinking of selling. Let’s connect today to discuss how much leverage you have as a seller in today’s market.
** Buy a Home **
Homebuyer Tips for Finding the One
If you have plans to buy a new home soon, ask me for your a copy of the “Top 7 Mistakes Buyers Make When Buying a Home – and How to Avoid Them.”
** Finance a Home **
Many Lenders are Now Accepting the Following 2022 Conforming Limits:
$625,000 1 unit
$800,250 2 units
$967,250 3 units
$1,202,000 4 units
Plus, High Balance 1 unit limits to $937,500 in high cost CA counties. Wow!
What Could Extra Money Every Month Mean For Your Household?
Homeowners continue to take advantage of the leap in their home’s equity by refinancing their mortgage. Many are taking cash out for debt consolidation, home improvements, or to expand their investment portfolio.
For example, say a homeowner has $20,000 in debt (think: credit cards, auto loans, student loans, personal loans, etc.) with combined payments of $500 each month. Coupled with a P&I mortgage payment of $2300 a month (example: $500,000 loan @ 3.875%), that is a total debt payment of $2800 every month.
Now, say the homeowner qualifies for a cash out refinance to consolidate that same debt. For a new mortgage amount of $520,000 (current mortgage $500,000 + $20,000 other debt) on a Conventional 30 year fixed rate loan at today’s sample rate of 2.875%* / 2.938%* APR, that’s a new monthly payment of $2157. A savings of approximately $640 every month.
*Rate and APR assumes cash out refinance, Conventional 30 year fixed rate loan, high balance county limit maximum, <60% loan to value, excellent credit, owner occupied, single family residence, with impounds. This is not a guarantee or offer to extend credit. Borrower must qualify. Rate and APR not available for every loan scenario and are subject to change until locked in.
Even if you bought a home or refinanced last year, there could be an opportunity for you to improve your financial position. So, what could extra money every month mean to you and your household? Give me a call to find out.
** Bottom Line **
I am truly grateful for the trust clients have placed in me over the years. When you rely on a trusted professional to inform you and be your guide, you can make the best decisions for you and your family. If you or anyone you know is thinking about selling, buying, or financing a home, call me to start the conversation.
To all veterans who made and continue to make the ultimate sacrifice for others, today and every day you are a hero. I am grateful for your courage and for your service.