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THE SPRING MARKET, FROM A TITLE COMPANY PERSPECTIVE
We often get asked when is a“ good time” to buy / sell. With the interest rates of the recent past, many people are hesitant to make a move. I can’ t disagree. If you are happy and content in your current home with a low interest rate, then you should stay put. However, if you are busting at the seams with a growing family, in need of a job change, or an elderly parent will be joining your household, then yes, you should know it’ s a good time to buy.
The( marginally) higher interest rates are not going anywhere, and they are still low in general. I bought my first house in 2000 and the interest rate was 7.25 on an adjustable mortgage, and that was a good rate back then.
Since 2022, our industry has slowed down to a hum, from the buzzing years of 2020 and 2021. The rates have scared off a large majority of buyers. BUT, for those buyers I’ ll use the word“ brave” enough to enter the market, I see that they are experiencing less competition. Therefore, they’ re more likely to find and purchase the house that they want, not one that they have to settle for. Yes, the interest rate is not a preferred 4 percent, but these buyers know that once the rates drop, they can refinance into a better position. The advice from realtor friends of mine is to“ marry the house, but date the rate.” You are not stuck with the initial interest rate.
If you are struggling to get approved for a loan, I encourage you to work with a loan officer who offers credit counseling. The officer can take a look at your current financial position, including income and credit-to-debt ratio, and give you solid advice for how to improve your circumstances for a purchase in six months or more. This is invaluable insight to your purchasing power, and speaking to a loan officer is the first step to buying a house. You have to know what you can afford before you hit the market.
Finding a realtor is the next step. Of course, you can and should ask friends, family and trusted contacts for their referrals. Next, you should hit the internet and read reviews. When someone asks me for a referral, I like to know any preference for male or female, personality type, etc. Some people work with realtors for years before finding the right house, so it’ s important that you interview potential matches and commit to the one who best suits you and you can talk to comfortably.
By now, I expect that most buyers and sellers have heard that there has been a change in commission structure. While that’ s true, as title agents, we still find that a lot of contracts are negotiated with the seller paying most( if not all) of the realtors’ combined commission. Yes, I know that sellers can sell their houses outright as a For Sale by Owner( FSBO), but I also know that unless both the buyer and seller on FSBOs are experienced in conflict resolution or negotiation skills, then potential deals can go south fast.
Think about getting through inspections, appraisal, contract terms and issues without a mediator to help ease the tension. Realtors can and should have enough experience, and assistance from their peers and managers, to help all parties from contract to closing. The commission is something you can discuss with your realtors at the beginning of a transaction.
Of course, you can always call Blue Sky. Blue Sky handles a majority of realtor-driven contracts but also many FSBOs yearly. We enjoy both alike, and working with the clients to get to the closing table on time and hassle free!
2940 South Park Road, Bethel Park, PA 15102 blueskycsi. com 412.595.7263
Katie McGurk Mannarino is the President of Blue Sky Closing Services, Inc. She has closed thousands of residential and commercial real estate transactions over 25 years and is a trusted member of the real estate community. Ask your realtor about Blue Sky Closing Services, Inc.
Kathy Cooper, Keller Williams Gina Fonzi, Coldwell Banker
Josh Clingensmith, Scalise Real Estate
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