10/25/2023
Caught in the 'worst time to buy a home' chorus?
🙀 I've heard it too, and I get why. Those mortgage rates aren't exactly our best friends right now, and the inventory's playing hard to get.
But there's more to the story than meets the eye.
👀 Did you know:
City of Dallas
Days on market - UP 10%
Showings on listings - DOWN 25%
Pending sales - DOWN 12.5%
Closed sales - DOWN 25%
New listings - UP 3.1% (YOY)
Homes for sale - UP 7.8%
Months supply - UP 40-%
Courtesy of: NTREIS
Is now the most picture-perfect moment to dive into the market? Not necessarily. But 'perfect' isn't the same for everyone.
💰If you’re a cash buyer (trust me, there are a lot of people with cash), then yes.
Once rates move down (next year sometime), people will move back into the market and prices will, at least temporarily, spike up.
👇Don’t have cash? Here are 3 Top 3 strategies:
🤩 1. Look for a property that has been listed for 60+ days, an estate, a divorce listing, a vacant listing, or a property owned by a relocation company. These are generally the most motivated sellers. A new listing is NOT as motivated to accept a lower offer.
🫣 2. Look for a listing with an assumable loan. This way you lock in the seller’s low rate. You still have to secure a large downpayment and go through an approval process but it can be well worth it to do the extra work for the low rate!
🤓 3. Negotiate with the seller to pay closing costs for a 2-1 buydown of your rate. You pay 2% lower than the current rate the first year, 1% lower in year two, and then your rate rises to the current rate for the remainder of the loan. The strategy works like this: You refi once your rate/payment goes up at the 2-year mark thereby avoiding the rate/payment increase altogether. In this scenario, you search for homes based on monthly payment and NOT on the price of the home.
Need some more advice on how to search for a home using the strategies I shared? I’d love to connect. Don’t forget to save this post or send to a friend because there are still opportunities out there.