Free Home Value Report Search For Homes

When Does Offering Over List Price Make Sense?


Here’s a tool from our pal Dave that can help buyers make better decisions.

I’m back once again with my good friend Dave Marzinke from Movement Mortgage to talk about a topic that’s been coming up a lot in my conversations. With a lot of homebuyers facing multiple-offer situations, people are unsure whether or not they should make an offer over list price just to get the home they want. The answer is that it all depends, but we have a tool that can help you make a decision.

It doesn’t always make sense to make an offer over list price.
 
It’s essentially an online automated valuation model that gives a forecasted home appreciation for a particular home over the next 12 months and over the next five years. In some cases, it may make sense to go in and make an offer over list price based on a great future forecast. Over the long term, it could be a great move.

If you have any questions or want a better idea of whether a home is worth buying over list price, reach out to Dave at (949) 449-2477. If you have any other real estate-related questions for me, don’t hesitate to reach out via phone or email anytime. We look forward to hearing from you soon.
No comments :
Labels:
Location: Mission Viejo, CA, USA

Does the Federal Funds Rate Affect Interest Rates?


Dave Marzinke joined me recently to break down the latest mortgage news.

I’m back again with Dave Marzinke from Movement Mortgage to talk about what’s going on right now in the mortgage industry.

A few weeks back, the Federal Reserve announced that they were going to keep the federal funds rate at 0% through 2023. Most buyers hear that and think it will keep rates down for another two years, but that might not be the case.

The truth is that mortgage-backed securities are a completely different instrument than the federal funds rate. The federal funds rate can be set by the Federal Reserve and they can change it whenever they want.

Mortgage rates themselves are affected by mortgage bonds, which are affected by inflation. When we start to see signs of inflation, that can push rates back up even if the federal funds rate is zero.

      Mortgage-bonds affect rates more than anything else.
 
If you have a decent credit score, good income, and a solid debt-to-income ratio, you’re looking at an interest rate of 2.75% to 3% for a conventional mortgage if you were to buy a home right now. It makes a ton of sense to buy and lock in that rate for a 15- or 30-year term.

If you have any questions for Dave about interest rates or anything else related to mortgages, give him a call at (949) 449-2477. If you have any other real estate-related questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
No comments :
Labels:
Location: Mission Viejo, CA, USA

What Things Differentiate Zillow and Redfin?


Here are basic the differences between Redfin and Zillow you should know.

Usually, one of the first times I’ll ever hear from someone is when they call wanting to know the value of their home. More often than not, these soon-to-be sellers mention estimates they got from Redfin and Zillow; they want to make sure they’re looking at the most accurate comps and that they know what’s been happening in their market over the past 30, 60, or 90 days.

The main difference between Zillow and Redfin is that Redfin works with a smaller number of homes—about 74 million compared to Zillow’s 110 million. However, of the 74 million homes that Redfin uses, one million are actually active on the market. Zillow may have a larger total pool of homes, but a smaller percentage of those homes are active on the market.

Redfin takes most of their listings right from the MLS.
 
Additionally, Redfin factors in the list price of properties on the market, whereas Zillow does not. Instead, Zillow will use the square footage, room count, and general tax information to figure out an average of sorts. Redfin takes most of their listings right from the MLS, which is the most accurate source. Their margin of error for estimates of value is roughly 1.77%, which is very low compared to Zillow; a couple of years ago, Zillows margin of error was around 7.9%, but they’ve managed to get that down to 4%.

Redfin and Zillow are great tools to use if you’re looking for a place to start, but I strongly recommend reaching out to a professional who has a lot of experience working with your local marketplace.

If you have any questions about your particular property, don’t hesitate to call, text, or email me. I’d be more than happy to help you.
2 comments :
Labels:
Location: Mission Viejo, CA, USA
Subscribe to: Posts ( Atom )