July 19th, 2023 2:33 PM by Andrew Walter May CEO
As everyone knows rates have pretty much doubled in the last 6 months to a normal range in the low 5s. We expect rates to continue into the 8s over the next 6 months. What this means is we are unlikely to see the over-bidding of the past (white-hot prices). However, that hasn't slowed down as of May 2022. We're seeing a lot of clients over-bid. What is over-bidding? Well, it's paying more today than it's worth for your home. Appraisals are starting to come in way-under purchase prices in some instances. Some people don't mind that, as it can be frustrating spending years looking for a home. In fact, if it does take you a year you are likely to be over-bidding anyway since home price appreciation was 25% last year and is likely to be 10+% in 2022. Therefore, over-bidding is a time oriented situation. No one wants to pay more for something, but when it comes to your home the facts are friendly. People will always over-bid to get the home of their dreams. What can you do about it? Answer:
Make your Realtor work harder!
Realtors are your eyes and ears for bidding on a home. I once put in 3 offers in one day. Unheard of? No. I qualified to buy all 3 and therefore, it was fine. We purchased the home that we wanted and it worked out. Make sure you speak with a licensed mortgage loan officer about over-bidding. What's your back up plan if you find you've overbid? Your bank only has a requirement to hire an 18 year old. Don't fall victim to believing what someone says who has never purchased a home before. Get a licensed professional that you trust involved in what will likely be the largest financial transaction of your life.
We treat you with respect and operate in Florida, Virginia and North Carolina. If you are looking for an honest, hard-working mortgage company that doesn't take advantage of the rate situation please give us a call. 919 771 3379. Thank you. Andy May