High Interest Rate Market
High Interest Rate Market
Full Video Transcript Below
[00:00:00] Well, good morning real estate fans, Alice Lema here, broker John L. Scott, beautiful Southern Oregon with another edition of the weekly podcast. Today, we're going to talk about interest rate trauma. Six things that you can do, whether you're buying or selling during these times of really extreme, and fast moving interest rates.
[00:00:24] Before we get to that, let's give you a quick minute to like the channel, subscribe to it, send it to your friends, send me some questions we love hearing from you. And it's an educational endeavor here. I keep telling you that we want the word to get. So we want you to make good choices, want you to have some information, have the actual data and then make the choice that's best for you.
[00:00:47] Okay, so with that said, let's go on to the messy world buying and selling real estate. Right now, interest rate trauma, six things you can do to try to try to make it better. So the first thing we need to do is contact the lender again, and you'd be surprised how many people don't think of this. They think because they have their pre-approval that it's, it's written in stone and that's not always the case. In fact, that's almost never the case. So you need to go and contact your lender. Actually, the second you're done listening to this podcast because you don't want all these other people to get in line in front of you because as soon as it sinks in, oh my gosh, I might not be pre-qualified at the number I thought I was.
[00:01:34] You know, they're going to, those lenders are going to be so busy requalifying people. So please, I want you at the front of the line, just so you know what you can, and can't do a number to reassess your household budget. See if there's money you're spending kind of frivolously that you don't need to.
[00:01:51] You might be able to scrape together another two to three, $400 a month. I'm not saying anybody's wasteful. I don't mean to make it sound like that, but you know, sometimes when we go through our monthly budget, we're just kind of nonchalantly spending money here and there, and it can add up to as much as $500 a month.
[00:02:10] So reassess your household budget. See if you can tighten it up a little bit and then use that money to have a little bit more wiggle room in your monthly payment.
[00:02:20] Number three, I know a lot of people don't like asking help from their family and friends for down payments. But if you have a bigger down payment, that is a way to offset this interest rate increase. You put more down, the payments, lower, you're still paying the higher rate, but your payments lower about what you wanted it to do. So I think when we are in the middle of these processes and we're doing it successfully on our own, it's kind of hard to swallow our pride and ask for help, but it is a possibility to help you get into a house now. So I just wanted to put it on the table.
[00:02:57] Number four is asking the sellers to start crediting closing costs. Now this kind of went out of fashion in the hyper extreme seller market. Sellers, you know, did not have to credit buyer's closing costs. But now sellers listen up. You might want to think about doing it. You might want to re reassess your budget as a seller and see where you can come up with extra money to kind of help out the buyer. Buyer's closing costs are frequently 3% of the transaction. So if you are buying and selling the $300,000 house, it can be as much as $9,000 on top of the buyer down payment. So that is a way for sellers to kind of jump in and help out if they've got the extra equity.
[00:03:49] Now, if you're making a purchase, then you can always look at other areas. You can look at other parts of the United States or other parts of the state that you live in and find something where the prices are lower. If you can take your job with you, and there's been a lot of that happening, the shutdown. So that's not really a new idea anymore, but I just wanted to kind of mention it.
[00:04:13] You can also number six, you can make lower price offers. So the seller's mentality right now is if they are aware of what's going on with the interest rate changes, especially if they're trying to buy something to this puts sellers in quite a pickle, because they needed that money to buy the next house.
[00:04:32] And now you know, they're going to get lower offers because the buyers that's how buyers adjust. You know, they write lower offers or they actually go to a lower price point. So if you're selling, be prepared for that, if you can make a price adjustment right now, this spring, then you won't have to languish on the market for very many months.
[00:04:53] Consider if you're selling, taking a lower price offer, and if you're buying consider writing a lower price offer it's not the best, but it might work and it doesn't hurt to try is what I always say. What's the worst they can do. They can say, no, you can write another offer. And if you're selling you can maybe negotiate differently so that you can get the job done because remember got to keep your eye on the ball.
[00:05:20] You wanted a life change. If you're selling, you wanted something to be different or you wouldn't have put your place on the market. Right? Right. So keep your eye on the ball. All right. It's going to be bumpy out there, but I want you to have a great week. If you need some help, if you want to talk, call me, text me (541) 301-7980.
[00:05:40] I wish I had interest rate aids, but I've got six ideas. That's like. Idea. Band-aids I hope they help. We'll see you next week. Bye now.