I am not going to list todays interest rates because by the time you read this it will have changed! Fluctuations are real right now as one day you can be at 6.5% then the next up to 7%. I will say be ready to lock that thing down on the day it drops if possible. Watch those homes you like, make a quick offer and get it locked in.
The interest rate fluctuation is constant and you need to be able to afford what you are buying with a little cushion. I will say I did help clients buy when interest rates were at 7.5% – 8% and since have helped notify them when those interest rates drop. This has saved them hundreds as they refinance when the market dips.
You can buy at a higher interest rate then refinance, saving some money.
How about Home Prices Right Now?
If you are buying a home in Denver or anywhere in the north corridor up to Fort Collins home prices are also fluctuating. The market is stabilizing and we are seeing sellers that aren’t catching up. What does this mean? Sellers are coming out too high, this leads to price decreases on home listings. It also means as a buyer you have more negotiating power.
I see home prices stabilizing and even dropping every so slightly. The reason for this is right now we have more homes for sale then we have had in years! More competition and what seems like less buyers mean buyers can be fussier. This leaves homes sitting a little longer leading to more reductions.
Can Home Buyers Get Discounts Right Now?
Here is how I am seeing sellers get the best deals for their wallets on homes right now.
Negotiating on Price
If a home isn’t priced right out the gate, you as a buyer have a opportunity to negotiate the price. Sometimes a home will still have multiple offers and that is usually because it has been priced lower to get people negotiating. However, if a home is lingering on the market this is a good opportunity for a buyer to write a lower office and start negotiations with the seller.
Seller Concessions Helping with Closing Costs and Interest Rates
You can ask the seller to give a certain amount back to you at closing. This amount can be used for your loan closing costs or for help buying down interest rates. This can help drop your monthly mortgage payments for a certain period of time. You can then refinance permanently if/when interest rates drop.
Inspection Items
With a more buyer friendly market you can negotiate on inspection item fixes. You may have the seller fix bigger ticket items so that you don’t have to spend the money when you move in. You might also ask for a certain amount to be credited at closing. Note if you do a credit this money has to go towards closing costs and concessions as above. You do not get cash in hand,
Is Now a Good Time to Buy?
This question is always so personal and never easy to answer without knowing the full picture. Look at todays interest rates, get news on the current market and engage professionals. A mortgage lender and a good realtor are going to be your best bet on working out the best time to buy for you.
A few things to consider. Can you afford to buy right now. What does the market look like and where is it headed. Do you need safe stable housing. Will you be staying in the home for at least five years.
If you need help deciding whether now is a good time buy or not, let’s chat! infor
