No so much. It will force sellers to take lower price for the home if the public can not afford the higher interest rate.
The payment by the buyer remains the same.
Low interest rates = higher home prices, high interest rates lower home prices.
My house sold! 5 days on the market, $15k over asking!
- Thread starter 14Accent
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The payment by the buyer remains the same.
Low interest rates = higher home prices, high interest rates lower home prices.
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I actually paid off my house yesterday morning, very anticlimactic. With various factors kicking in, it was 9.5 years early when using 30 years as a benchmark. Thank goodness for a then late 50 y.o. coworker in 2008, telling me if I were you, put any extra funds you may have towards the principal of your house--and she proceeded to explain in a real world sense. This is a woman who checks the cost of a replacement tire, before she buys a car--smart.
What I have learned as of late, was that those folks in the high $ markets like Boston and Fairfield CT, people like me, who are older, take longer to pay their house off. Specific example, my buddy who is 7 years older, has 4 more years in CT (my thought is apples to apples he should pay his home off 7 years sooner, he's older and started longer ago). So it would seem we're playing the 9/10 is possession deal because embarrassingly, according to realtor.com, my house isn't even 500k, when just the 2 I mentioned above are in the 1 point x range.
All I can say is, it is what it is, right? I've never sold a house, but I know myself, if I got more than asking, I'd be wondering if the realtor priced it too low, what if 10k over, was a bargain to the buyer who had 30k over in mind if he had to? Reminds me of my first job here in Phila. My first year, I got a 25% raise. I was elated. It was to bring me up to the median for my job hahahahahaha Dang recruiter brought me in too low
edit for anyone out there listening, what was instrumental to me was a first lien position home equity loan. Forced me into a 10 year amortization, last time in 2013.
It's a means of refinancing with ZERO costs. Why, it's not a mortgage, there is no title insurance. The catch is it's a 10 year amortization with a rate higher than a 15 and lower than a 30. But I did this 2012 and 2013 to get my rate down to 3.25%, when it was 5.75% prior, and with ZERO fees, other than the county recording fee to dispose of the lien.
In other words I didn't want to do a traditional refi which may have been a few thousand in closing costs.
I guess it still exists here's a description, and again, now is not the time. Only when your mortgage has a higher rate and you're looking to drop it, without a fee:
What is a First Lien Home Equity Loan?
A First Lien Home Equity Loan (First Lien) is a mortgage product, meaning it’s a loan secured with real estate as collateral. However, First Liens are generally taken out when you’ve already purchased a home with a traditional mortgage. More specifically, Rich explains First Liens are “designed to provide a quicker and less expensive refinance option for members who owe less than $250,000 and have at least 20% equity in their home.”
mayocreditunion.org
What I have learned as of late, was that those folks in the high $ markets like Boston and Fairfield CT, people like me, who are older, take longer to pay their house off. Specific example, my buddy who is 7 years older, has 4 more years in CT (my thought is apples to apples he should pay his home off 7 years sooner, he's older and started longer ago). So it would seem we're playing the 9/10 is possession deal because embarrassingly, according to realtor.com, my house isn't even 500k, when just the 2 I mentioned above are in the 1 point x range.
All I can say is, it is what it is, right? I've never sold a house, but I know myself, if I got more than asking, I'd be wondering if the realtor priced it too low, what if 10k over, was a bargain to the buyer who had 30k over in mind if he had to? Reminds me of my first job here in Phila. My first year, I got a 25% raise. I was elated. It was to bring me up to the median for my job hahahahahaha Dang recruiter brought me in too low
edit for anyone out there listening, what was instrumental to me was a first lien position home equity loan. Forced me into a 10 year amortization, last time in 2013.
It's a means of refinancing with ZERO costs. Why, it's not a mortgage, there is no title insurance. The catch is it's a 10 year amortization with a rate higher than a 15 and lower than a 30. But I did this 2012 and 2013 to get my rate down to 3.25%, when it was 5.75% prior, and with ZERO fees, other than the county recording fee to dispose of the lien.
In other words I didn't want to do a traditional refi which may have been a few thousand in closing costs.
I guess it still exists here's a description, and again, now is not the time. Only when your mortgage has a higher rate and you're looking to drop it, without a fee:
What is a First Lien Home Equity Loan?
A First Lien Home Equity Loan (First Lien) is a mortgage product, meaning it’s a loan secured with real estate as collateral. However, First Liens are generally taken out when you’ve already purchased a home with a traditional mortgage. More specifically, Rich explains First Liens are “designed to provide a quicker and less expensive refinance option for members who owe less than $250,000 and have at least 20% equity in their home.”
Your Questions Answered: First Lien Home Equity Loans
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There's something to be said for the Dave Ramsey plan.
GON
$100 Site Donor 2024
Yes, but if historic data aligns to that scenario, housing sales will go down, but housing prices will likely increase.
In the years the US has interest rates were above ten percent for owner occupied single family homes, house prices went up every year. No major gain in the value of homes, but double digit interest rates did not impact the rise in single family homes. Double digit interest rates did impact the sales of single family homes though.
I could easily sell my place but I would feel like’… ‘Now what?’
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By the way, is there any consensus on who has the most realistic pricing....realtor.com, zillow, redfin?
I read realtor, but have no opinion. Realtor shows our house at 7% more than zillow, so I'd love to hear realtor is more realistic.
My brother works with a lot of younger folks (right out of college). He has observed they are not interested in owning a home, owning any car unless it's a Tesla (in reality they don't care about what car they drive), and no kids. All of them it seems. He also says he hears them all charging their rent on the Bilt Mastercard?
GON
$100 Site Donor 2024
Without a population that is growing by leaps and bounds, how are the entitlements to be funded?
Note entitlements are often not free. An example, people paid into social security for decades.
Our house in Duvall, WA sold for nearly $200K over asking price in 2021. Bought for $299K in 2005, sold for north of the million mark. We asked within reason for the market using comps of actual houses sold. We even bumped that number up challenging the RE Broker to earn her keep, she said if she didn't hit that number, we didn't have to pay full commission. We gladly paid full.
Timing. When our listing went live there were essentially no houses in the vicinity for sale. People included letters and letters from their children begging to buy our house. The offers poured in. People trying to angle in. Never seen anything like it.
Timing. When our listing went live there were essentially no houses in the vicinity for sale. People included letters and letters from their children begging to buy our house. The offers poured in. People trying to angle in. Never seen anything like it.
Rant On:
I'm not giving a Realtor $25G (6pts) to sell my house in a week in a hot market. IMO an over-paid "car salesperson" The alternative may be hard work for a couple months.
But it's really not Funny Money and its certainly not chicken feed.
Rant over.
I'm not giving a Realtor $25G (6pts) to sell my house in a week in a hot market. IMO an over-paid "car salesperson" The alternative may be hard work for a couple months.
But it's really not Funny Money and its certainly not chicken feed.
Rant over.
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When I was looking to buy my first house, I simply called the realtor on the sign. Someone explained to me, that person has a vested interest with the seller, you should really find your own agent. Very basic but plays into business relationships. Like say you get sued and they're really after your employer, and your employer's insurance co's attys. contact you. They're not on your side...
those named above, they are all just estimates of course; however, when the rubber meets the road, that's what counts
normally realtor will do market analysis for the zip, offering a price range, by looking and comparing available houses in your close proximity; also, they'll take into consideration the most recent comparable sales, lets say up to 6mnts back, current sales on the market, and include few comparable sales that did not sale in the area
most likely a relator will tell you that what he/she believes is your house worth it, and your price range for the house; then he'll ask you what is your time frame to sell it, so if its a longer they can price it higher, or in case if your timeframe is a shorter then its should be priced correctly from the get go
its very important to get the pricing correct right from the front otherwise it builds frustration on both ends, a realtor and a seller
Realtor: Hello Mr. Buyer, here's a beautiful home with all the features you requested at $499,500.
Mr. Buyer: It's perfect but I'd rather pay $534,000 for it.
I guess these selling over asking are when two or more Mr. Buyers see it at the same time and bid against each other. Makes no sense otherwise.
Mr. Buyer: It's perfect but I'd rather pay $534,000 for it.
I guess these selling over asking are when two or more Mr. Buyers see it at the same time and bid against each other. Makes no sense otherwise.
Understood. But that single broker doesn’t get that. My youngest daughter actually is connected let’s just say to a company in the mix that gets a cut of that.
But yes I’ve bought and sold some of our 8 houses over the years without a broker. Not difficult but sometimes I pay and negotiate the fee.
That often can be negotiated.
You got a cool half million in cash laying around? That's the price of admission in many parts of the SouthWest. You couldn't saved fast enough to keep up with the appreciation that has taken place in the last 5 years.
I retired at 55. Why? Because I had multiple rental properties-all with mortgages. The rental income paid off the mortgages-allowed me to retire early.
Dave Ramsey has several flawed theories-paying cash for properties in one of them.
Dave Ramsey theories are for those who have absolutely no ability to think for themselves or self discipline.
GON
$100 Site Donor 2024
It all depends. Is your home a cookie cutter home in a cookie cutter neighborhood? Or does your home have deep value that is not going to be seen by a computer system such as Zillow, or by many appraisers?
Is you home in Utah where they will pay in cash for a home as is sight unseen? Or is your home in Illinois which the state has had ten consecutive years of population decline.
Yes, a huge percentage of realtors are not worth your time or money. The challenge is to find a realtor that is worth your time and money - and if you find one good chance you will come out ahead in net proceeds even after paying the broker commission.
I had a home that was not a cookie cutter home in the hardest state to sell a home in the USA. I was very, very happy to pay the broker's full commission.
