Interested in what's going on in the local real estate market? Here you go...
Buyers, you may be in luck!
Over the past couple of weeks, two things have happened that are good for buyers:
* Interest rates have fallen almost a full percentage point and are now sitting at 6.40%, according to
Mortgage News Daily. You just picked up some buying power. Couple that with...
* Homes are sitting for longer on the market and price reductions are much more prevalent. The power is moving back to the buyer. Maybe not all the way, but directionally for sure.
My advice?
Here's a scenario. A home that you love has just come on the market. It looks perfect and you're thinking that it'll get snapped up in two seconds like usual. Except it doesn't. It actually makes it through the first weekend without selling! Well, that's the market we're in right now. If that home you love stays on the market through the first weekend, then sharpen your pencil and make a less-than-list offer. How much less? Ten percent is still a bit aggressive, but I'd be comfortable with an offer 5-8% below asking price. Comfortable, in this case, means that the seller may accept the offer or negotiate with you, rather than just saying no outright.
Make an offer and exert some of that newly regained buyer power!
And rates are only going to help you here if you can get the home you want at a lower price with a better interest rate on your mortgage balance.
That's it for now. Stay tuned for my open house update!
Mitch
About me:
Yes, I'm a realtor and I represent buyers and sellers in Minnesota and Wisconsin. I work in all price ranges because I represent clients in and see homes in all price ranges every week. If you'd like to see something specific, let me know. If you'd like to know what my "best of" list is in any price range, just send me a note and I'll send you my hand picked favorites.
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