Brian and David talk bidding wars, the state of real estate, and overwhelmingly low mortgage rates!
This week’s highlights:
- Flexibility is key when trying to out-bid fellow homebuyers with a killer offer to purchase.
- Home and condo prices are up since this time last year.
- Mortgage lenders can barely keep up with the trend of historically-low mortgage rates.
How to be more competitive in home bidding
As a tip for buying a house in a tight market, Brian advises buyers to present their offer letters with ~$5,000 of wiggle room in the purchase price, or wiggle room on the appraisal price, especially if you are coming into the ring with a mortgage preapproval that’s close to the offer price (and/or less than 10% down).
When you get involved in a multiple bidding situation, you can get an edge by giving more flexibility after the appraised value comes in on the home you want.
The state of real estate: March 2020
How tight is the current real estate market for March 2020?
In the 5-county metro Milwaukee area:
- Condo listings are up 22%
The median sales price is $175,000, a 5% increase year-over-year.
- Single-family home listings are down 3%
The median sales price for a single-family home is currently $225,000, a 12.6% increase year-over-year.
Accunet’s home price calculator can help you decide how much home you can afford!
Low rates and high refinance requests!
Brian and David laud the trend of low rates over the past few weeks and warn customers that many mortgage lenders — including Accunet Mortgage — are so swamped by the market that they cannot currently handle any more new home refinance requests from excited homeowners.
As of 3/5/20, for a standard 30-year fixed rate mortgage, Accunet can offer a 3.375% rate on a $200,000 home with an APR of 3.4%.
Brian advises that if your mortgage balance is between $50,000-100,000 you should jump on current rates to see a drastic reduction in your monthly payments.
Accunet can help you customize your mortgage; if you want to keep your payment the same, you can shorten your mortgage term, or plan with you to save a little interest and enjoy the most payment savings.
Finally, David predicts that no matter what the financial markets might do this upcoming week because of the coronavirus, the stock market, etc.,the mortgage industry is not going to reflect the change because they are keeping so busy.
Expect rates to stay historically low into the ides of March!