The Accunet Mortgage Show (4/26/20 Episode)
In this week’s episode, Brian and David talk high unemployment, low available home inventory and fail-safe ways to get your home offer accepted.
This week’s highlights:
- There is a light at the end of the tunnel for America’s skyrocketing unemployment numbers
- Available inventory for listed homes is next to none in some counties
- Accunet gives you 6 surefire ways to get an accepted offer despite low home availability
6 surefire ways to get an accepted offer during the quarantine
If you are a buyer trying to muddle through this shrunken inventory environment, Brian and David give you some tips to still score the home of your dreams.
- DO NOT ACCEPT the premise that the house you want is unavailable, even if it has an accepted offer.
Perhaps the seller has accepted an offer that is contingent on the buyer’s home sale. Brian advises you to call your listing agent and see how solid that offer actually is, and have your agent determine if that offer is ‘bumpable’. Don’t hesitate to make a backup offer in case the actual offer falls through.
- Get a rock-solid pre-approval from Accunet on the home you want.
This will guarantee all of the necessary details, including the loan amount, property taxes, maximum payment, and it will make it so much easier for the seller to that your offer is the best match for what they are asking.
- Maintain flexibility on the appraised value of the home.
Have the courage to write an offer without an appraisal contingency and throw in some embellishments, such as paying over the asking price as long as the house appraises at that price or above.
- Propose an inspection contingency where you come to a mutual agreement with the seller on how he or she will cure any defects and chip in some $ towards repairs.
- Bolster your down payment.
Bigger is always better in the seller’s eyes, and Accunet are experts on helping you get a life insurance loan, 401K loan, or documented gift letter and strengthen your down payment.
- Offer a later closing date to accommodate and put your seller’s mind at ease during these tricky/uncertain times.
According to the U.S Department of Labor, 4.4 million Americans filed for unemployment this week, and as of 4/18/20, there were 56,000 listed as unemployed in Wisconsin alone.
The light at the end of the tunnel is that businesses or not-for-profit companies who have received their Paycheck Protection Loans from the CARES Act are beginning to hire their people back.
Since you need to have a job or income to qualify for a mortgage, Accunet wants to make sure you have all the knowledge at your fingertips for available mortgage loan options.
With unemployment numbers skyrocketing and an extended Safer at Home order, inventory has been uncomfortably tight for homes currently on the market. Prospective sellers are holding back and buyers are equally as hesitant. As David mentioned, there would need to be a 1:1 drop of inventory and buyers to balance out available homes.
According to data from the Multiple Listing Service, there was a 37% reduction in the number of available homes within the geographic spread of Brookfield, Elm Grove, Mequon, Cedarburg, and Menomonee Falls- compared to this time last year.
Last year this time: 2,256 new listings
This year: 1,424 new listings
- In the >$200,000 price range, there are 7 home listings, 85% of which already have offers.
- In the $200-$250,000 price range, there are 22 listings, 80% of which already have offers.
- In the $250-$299,000 price range, there are 43 listings 70% of which already have offers.
- In the $300-$349,000 price range, there are also there are 43 listings 70% of which already have offers.
- In the $350-$399,000 price range, there are 35 listings, 46% of which already have offers.
- In the $400-499,000 price range, 62% of listings do not currently have offers, and so on, with homes becoming more available as the prices climb.
- In the $1-1.99 million price range, all home listings are available but 1.
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