Real Estate Deal Killers 2023 Edition

Good morning Doug,

I'm so glad that Kathy Streib featured your post in her "Ah-ha" moments for the week. We are all seeing some roadblocks or bumps in the road now but you've provided potential buyers 4 things they can be proactive about!  

I agree with you. If they can afford to buy at today's rates, do it. If rates go down they can refinance. 

I do wonder if home prices will drop. I read that they're down 3.4% nationwide, but don't know if it's true. After all - fake news abounds! And of course, every market is unique. 

Doug Rogers  I agree with George Souto. These rates are not high when compared to previous years. I am pleasantly surprised that there are still many buyers who realize it is a good time to purchase a home. Glad Kathy Streib Featured 

Get used to high insurance costs and 6% interest rates that are the norm historically 

Great points, Doug. Your Buyer clients are very lucky to work with you, with all your knowledge, skill and especially the ability to find off-market deals in this market.

Hi, Doug Rogers 

   Good points, especially about the interest rates... buy it TODAY NOW, you can always refinance if there is a significant drop.

  May I add, I suggest to Buyers that they meet their insurance agent (or agents) early in the buying process.  Just like when they talk to a lender / pre-qualify before they start the house hunt.

    Of course the State Farm guy can't give you a quote until the subject property is identified, but they can educate and prepare the Buyer for what to expect.  Especially if they will be looking at coastal control line or waterfront property, flood zone, or other high-risk houses.

As long as it doesn’t smell bad in any of the homes that’s my main thing. Do you know what I mean?

I like item #3. The shark-feeding frenzy from last year was not fun for buyers.

Congratulations on the feature. Well done posting especially as others have said regarding interest rates.

Excellent suggestions, Doug.

For those who choose to wait until rates go down, prices go down, more houses come on the market...please share with me the time period in which you expect those things to happen.

Good job Doug.

I agree with you about interest rates...

All are excellent points. My first home purchase was double digit interest. I totally agree that if now is the time to buy a home, buy what you can afford and if rates come down in the future, refinance.

I am so glad that Kathy Streib featured your post - I missed it before - all great suggestions to solve problems we are facing now

I'd like to add strict income requirements for borrowers (buyers). We're seeing local lender's underwriters calculate income in a variety of ways and st notably, averaging.

Great information. The biggest issue in our area is interest rates and inventory. When you look at historical interest rates, that don't seem as bad. Housing inventory is tough in our area for first time homebuyers. I don't work with rentals but I hear complaints on different social media channels about the high rents. As our area grows, it is becoming harder for people in the service industry to live in our community.

That insurance gonna be a little bit tough to handle you can get through it with the right head on your shoulders, and the right people in your life, I suppose

Great points.  The factors you pointed out have always been part of the real estate market and always will be the factors.  There may be more specific factors such as Covid that occurred.  The solutions you listed are key factors that will help buyers or investors navigate the ever changing real estate market. Very good post.

I'm right there with you on interest rates.  Who knows if they will come down?  Better to assume you will have what you lock and be able to afford that.

In rural markets, there is a steady migration for folks who pack their job with their personal belongings. Small towns that have long and strong Internet connections mean cash not financed sales. And the house prices, (car and home insurance too) are so much lower that if you have to finance, the mortgage is short and sweet smaller. 

People still need to move. Granted, only the most serious buyers and sellers will be making those life changes, but as long as we are top of mind, we will persevere.