This week’s Highlights:
- A major client win!
- How buying season changes things
- First time refinancing clients
A client finally wins after several declined home offers
We recently got a call from a long-time client saying “We went and saw a new listing last night and we want to write an offer, and we’re thinking of offering $390k, $50k over asking price.” Over the course of several offers they’ve made, they’ve written at least three where they’ve come in second place or lower. One of the first offers they made, they wrote with $10,000 wiggle room, then they wrote with $15,000 wiggle room. So now they were tired of losing. And so they were going to write with $20,000 wiggle room.
What’s happening right now is that well-priced homes are always going to go for above asking price. If you’re bidding, you’re really going to need to go all out and hit the $50,000 over asking price mark, give or take.
The question is how aggressive are you going to get, on this particular purchase price. So then if this came down to actually putting in an offer, what kind of wiggle room do we want to put in when we craft that preapproval letter? That’s why you want to get in contact with mortgage experts because we’ve got the experience with what’s required for beating out other offers. Great news: Our clients got the accepted offer!
Learn how to get the best rate for you with Accunet Mortgage and our team of refinance experts—click here to get started.
The seasonality of home buying
We generally start to see new listings start to ramp up in February and March. Interestingly, this has been somewhat delayed this year. Another aspect that is heavily influencing the way homes are being bought is the fact that they are selling extremely quickly. 33% of homes have accepted offers within the first few days. That’s pretty impressive. Then you hit the 50% mark by day five, and once you get to eight days two thirds of them have accepted offers. We call that the velocity of the market.
Essentially, good houses are a “one weekend” kind of event, like a sale at a store. You see a house on Thursday, put in an offer by the end of the day, and the buyer is making a final decision by Monday at 10:00 a.m.
Buying a new home? Start here so you know what to expect from the process!
Options for first-time refinancing clients
When it’s time to consider refinancing, there are always several options you should consider based on what your ultimate goal is. We had a client that was interested in refinancing for the first time, because they realized, “Hey, my house is now worth a lot more than it did 18 months ago.” Not only are rates better, but they have all this equity on their home now.
One of the things we want clients to think about is how exactly you want to use your house. Think of it as an asset (because it is). How do you want to tap into that? We wanted our client to consider exactly this, and came of with three different scenarios for them to consider.
- If they want to tap into their equity: We could get them up to $46,500 cash out. If we can get an appraisal at $368 on their home now, and their payment compared to what they’re paying now would go up $97. The total costs to do that would be $1,234.
- If they want to lower their monthly payment: If you just want to lower your payment, don’t borrow any more money. In this scenario, we could save them $111 per month. Not only can they lower that payment, but they will actually save $20,761 of interest whilst enjoying the $111 per month savings.
- If they want to pay their mortgage off earlier: They could get 2.99% on their 20 year-fixed. They’d just need to pay a little bit in closing costs to get that trophy rate. Their payments would actually go up $194. So the right way to do that comparison is to say, Hey, how does that look compared to just keeping your mortgage and paying another $194 a month on top of that? And the answer is there. You would save $37,742 of interest versus doing nothing.
Lock in your rock-solid pre-approval before rates continue to rise—click here to get started. A major client win!
Want the Lowest Rate on Your Home Loan?
Let's Get Started!
You Might Also Like
Aenean sollicitudin egestas elit vel mattis. Proin non lorem arcu. Sed ornare venenatis sapien id iaculis. Etiam ultricies interdum commodo. Aliquam erat volutpat.