Latest / Connor with Honor: AI, Real Estate and Real Life / Interest rates maybe hit the magic number brought to us by the Fed Fairy
Transcript
- 0:00September 16th, 2024 good day everybody we're gonna get into your real estate update we're gonna start right now currently in the Santa Clarita Valley we have 544 total active residential listings on the market for sale this is gonna include every city out here so it's a total of all the residential listings for sale single family residences gonna cover condominiums and town homes that's 544 all of that data and those listings can all be found at Santa Clarita openhouses.com my system it's unlocked you'll be able to find everything there without having to worry about any of your personal information being sold or traded now I will tell you that one of the most important things to watch out for are those online systems that are taking your information for the rest of the real estate news here in Santa Crata Valley you can bet on interest rates having been coming down the last few days and probably continue to bet that they will continue to decline maybe not much but the Fed is meeting tomorrow and the next day and when they're gonna meet they're more than likely going to readjust that funds the federal funds rate that's the rate of which banks get to trade money to each other usually if that's a lowering or an increase that does impact the mortgage rate and that's the one that the people watching my show are most interested in buyers out there have a decision to make if you haven't spoken with a lender yet and you're considering dipping your toe in the real estate market now is definitely the time because if interest rates do come down considerably and what I mean by considerably looks like into the fives or high fours it will probably kick this I take that back it will kick this market off like it was a years ago when it was standing room only with listings and where there were multiple offers in very short order and buyers were willing to give up particular rights in order to be able to purchase real estate and stay competitive with those other buyers out there I will throw caution to the win for you buyers that are getting advice from agents to give up all your contingencies and rights when buying real estate you need to think about everything you're changing in that response to the seller's counter or even in your original offer it's incredibly important somebody that's gonna sit down with you and explain the nuances of you may be shrinking contingency time frames for inspections for example might be incredibly important in addition to that as far as your down payment goes down better stability for sellers out there depending on what type of loan you're gonna be using now some loans don't require much of a down payment if any I'm talking about the Veterans Administration loans FHA is probably also well it's also a very low entry level loan that three and a half percent down those two types of loans are typically looked at by homesellers as being very solid very good because you do need the credit wherewith all to be able to get those types of financing and with the veterans loan of course where you have to be a veteran or somebody member of the military in good standing or having been honorably discharged feeding that criteria that being the case the sellers out there looking at those very very credibly on or side though people that have 20% and more down those offers are also looked at as being incredibly solid and in some cases may be preferential for the sellers out there in order to compete with those if you happen to be a veteran or another type of borrower that doesn't have that high down payment a lot of times those buyers give up a lot of rights that maybe the 20 and 50% down buyers don't have to I'm throwing I'm just explaining that it's probably best for you to make sure you know exactly what you're changing and if in fact you can change your inspection time frame for example to do all the inspections on the property to a lesser time because the seller needs to move rather quickly let's say that might be beneficial and might not be too much of a big deal for you as a buyer because you might be able to get those inspections done within that 10 or 12 days and that's fine the sellers might like that because if there are issues they get to deal with it without having to wait 17 or more days until the inspections come back and you decide what you're going to ask for if anything in the way of repairs or some kind of credit for things that have been discovered that you didn't expect when you were making that original offer I'll tell you sellers don't like revisiting these things and most properties if it's not indicated in contract it's assumed it's going to be sold as is you as a real estate buyer discovering things of course if you were a seller and you had though you were wearing those shoes more than likely you wouldn't appreciate it buyers would be coming back after you asking for money and credits after they have done their inspections and gathered more information on your residence but it does happen the thing that probably shouldn't happen is a buyer using that as a reason or a catalyst in order to try to get the property at a much larger discount basically looking at this inspection report might have $1,000 worth of contractual type fixes and repairs that maybe need to be done leaks and those sorts of things a thousand dollars doesn't mean the buyer should be asking for 10,000 dollar credit because they believe the sellers in a hard way and they refuse or don't want to start escrow again with a new buyer these are things that a top negotiator gonna watch out for for you and make sure that you don't stick your hat out too far in addition on the sellers end of it good advice really goes a long way in real estate that's why having somebody that can negotiate well and understands the ins and outs of real estate me having been doing this since 1998 I'll be more than happy to guide you through the whole process that's where our current market is I'll keep you updated as tomorrow and Wednesday develop it's gonna be an exciting week in real estate if interest rates do come down I would imagine that most of you are going to be jumping back in the market as buyers if you haven't relive those qualification letters with your lender if you haven't gone and spoken with them for a while now might be a good time to reach out see what they think about the rate and then ask them how that rates gonna adjust for you if in fact the Fed drops those rates here over the next couple days and it eventually we'll roll down and also go after that mortgage rate hopefully if there is a large enough reduction or if the other factors at play in the economy indicate that that's where the mortgage rates are gonna go something to definitely watch and I'll keep you posted also I'm Connor with honor have a great day we'll see you on the next one don't forget to check me out at WWW.SantaClaritaopenhouses.com let me know when you're ready and I'll help you get your real estate one