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Yet here we are!
We sent in our offer 1% below asking (to a round number), 20% down and no contingencies except an inspection and financing. House has been on market 2 days and there's 3 offers in. I'm in the Midwest; this is not California or a red hot market so I was a little surprised. It is one of the best neighboriods around and priced very right so I knew I'd sell fast.
I know one of offer was accepted before ours came in but it has a home sale contingency attached. Excited to see how it plays out. Any tip appreciated.
My experts say: "
I met with three guys last week, one a business professor at DU, to talk primarily about the apartment market. I asked what would happen if mortgage rates went to 6%, let's say. Would people who have 3.35% mortgages be willing to move-up if it meant losing their beloved rates?
All three said no.
One guy, who has a mortgage background, said that one reason the inventory is so low today is that a lot of people have been able to refinance, even though realistically they couldn't make a profit selling, even with rising home prices. They look around and realize they can't live in a place for less than their new mortgage, so they stay put. Being $50K under water is just on paper for them, since they don't plan to sell. And if by the time their home appreciates enough to make money and rates are at 6%, they won't sell and lose their current rate."
An example, Indianapolis
Last edited by davebarnes; 02-16-2013 at 05:58 PM..
Interest rates are not going up for the forseeable future, at least through 2016 and possibly later. The Fed is going to make sure housing inflates back up to the bubble peaks.
Interest rates are not going up for the forseeable future, at least through 2016 and possibly later. The Fed is going to make sure housing inflates back up to the bubble peaks.
Actually, I'm reading that they are anticipating interest rates at 4.5% by the end of the year. They will go up slowly.
I know one of offer was accepted before ours came in but it has a home sale contingency attached. Excited to see how it plays out. Any tip appreciated.
So, do you think first offer will not be going through?
This is where research is your friend.
If you really want a house and you suspect/know there are multiple offers, you bid higher that the asking price. Try to get your 'deal' in seller concessions. If you are going into an area that has a long history of being a desirable one, why even bother with low offers? 2 or 3 k more is nothing in the monthly.
The only advice I have is don't get stupid and let the house blind you to your personal fiscal realities. In other words, stop your bidding when you reach your maximum comfortable price. There's always another house to buy.
So, do you think first offer will not be going through?
Not sure, but a second offer was accepted as backup and ours rejected. the first buyers have 48 hours to decide if they want out or not since they have a selling clause.
we ended up losing to people that visited right after us. Like they were in the car waiting when we were leaving. we went straight to the office to draw up a full price offer. We didnt lose on price but on moving date. We put down 5 weeks closing but mentionned we were flexible. The other people visiting were with the broker of the firm with which the house was listed, and put in their offer to close in the end of May, when the sellers wanted to move. if i had that information i would have used it, but i didnt and the listing broker obviously did, so they used it to their advantage. ill know next time to put in flexible in our offer. Bummer
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Even in Iowa City, LOL
