usctrojancpa
Well-known member
Cares said:
Yup, some sellers just accept the best offer without counters or only countering the top few buyers so I tell my buyers to bid their highest offer right from the start.
How low can we go? 30 yr fixed at 3.75% with no fees...
- Thread starter ps99472
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NEW -> Contingent Buyer Assistance Program
Yup, some sellers just accept the best offer without counters or only countering the top few buyers so I tell my buyers to bid their highest offer right from the start.
Trying to help a friend buy a place right now. We've been searching for about 6 weeks and have submitted 3 offers so far, all beat out. The last one was for a condo where they bid $51k over ask - and still lost out. Buyer fatigue is setting in for sure...waiting for one of the next convos to be, "you know, we'll take a break for a few months..." And I can't in good conscience tell them to waive the inspection and loan contingencies.
If you know that you'll keep the home longer term than it may be worth it, if not that pass.
Yup, I already have a few buyers go to the sidelines and wait until things are less crazy. My buyer bid $77,000 over on this home last week and we came in second highest from a total of 12 offers...
https://www.redfin.com/CA/Tustin/12191-McCulla-Dr-92782/home/4759883
Waiving the inspection contingency is OK if it's a newer clean home, but waiving it doesn't mean that the buyer shouldn't do an inspection. It just means that they won't be able to submit a request for repairs either for repairs or credit in lieu of repairs. Waiving the loan contingency is a whole other thing and I would never allow any of my buyers to waive the loan contingency unless they can buy the home for cash if worst comes to worst.
Today sellers are asking for 3% deposits.
Yup, some sellers just accept the best offer without counters or only countering the top few buyers so I tell my buyers to bid their highest offer right from the start.
potsticker
Active member
Cares said:
Trying to help a friend buy a place right now. We've been searching for about 6 weeks and have submitted 3 offers so far, all beat out. The last one was for a condo where they bid $51k over ask - and still lost out. Buyer fatigue is setting in for sure...waiting for one of the next convos to be, "you know, we'll take a break for a few months..." And I can't in good conscience tell them to waive the inspection and loan contingencies.
usctrojancpa
Well-known member
OCtoSV said:
If you know that you'll keep the home longer term than it may be worth it, if not that pass.
usctrojancpa
Well-known member
best_potsticker_in_town said:
Yup, I already have a few buyers go to the sidelines and wait until things are less crazy. My buyer bid $77,000 over on this home last week and we came in second highest from a total of 12 offers...
https://www.redfin.com/CA/Tustin/12191-McCulla-Dr-92782/home/4759883
sleepy5136
Well-known member
crazy how these overbids are losing to other offers. I noticed that none of you guys have mentioned waiving inspection and appraisal contingencies. It seems like Bay Area and Seattle requires you to do so in order for your offer to even be considered. In addition, you have to bid 100K+. OC seems reasonable compared to Bay Area and Seattle haha
usctrojancpa
Well-known member
sleepy5136 said:
Waiving the inspection contingency is OK if it's a newer clean home, but waiving it doesn't mean that the buyer shouldn't do an inspection. It just means that they won't be able to submit a request for repairs either for repairs or credit in lieu of repairs. Waiving the loan contingency is a whole other thing and I would never allow any of my buyers to waive the loan contingency unless they can buy the home for cash if worst comes to worst.
sleepy5136
Well-known member
what is typical for a resale home for earnest deposit? I heard that has also increased including waiving contingencies.
usctrojancpa
Well-known member
sleepy5136 said:
Today sellers are asking for 3% deposits.
MBS 2.0 coupon is taking another day of pounding. Currently down 23 bps as of this morning and down about 130 bps since Thursday.
Some of my files with smaller loan balances are up 0.375% in interest rates. Most are 0.25% up in rate like I said would happen.
Some of my files with smaller loan balances are up 0.375% in interest rates. Most are 0.25% up in rate like I said would happen.
Attachments
sleepy5136
Well-known member
luckily I locked in my rate in January for a home closing in April.. I've had some lenders telling me I didn't need to lock in that early lol.
sgip
Well-known member
Locked plenty of people before a 9:49 AM re-price for the worse.
Typically Fridays on a risk basis are terrible days to lock given what might (or might not...) happen over a weekend. Still, we are in a higher rate environment for the time being. Times change however and it's possible that we will still remain in and around the upper 2's low 3's for a considerable time ahead.
What's going to hurt is folks who were told they were locked, but now find out they weren't. I've run into this multiple times as refinance competition is heating up. Homeowner A is quoted 2.5 on Monday by me, but gets a 2.25 quote from Lender B on Tuesday. By Friday, I get the call "Um... do you still have that rate we talked about Monday?" Unfortunately now the answer is "No, Monday rates no longer exist on a Friday." Live and learn.
No. Sales and values won't collapse in a 3.5% - 3.75% rate market. For every well priced home under contract there were 10 offers behind them who did not get the home. If seller's lose a buyer for any number of reasons other than rate, another buyer is waiting in the wings to replace the original buyer.
Typically Fridays on a risk basis are terrible days to lock given what might (or might not...) happen over a weekend. Still, we are in a higher rate environment for the time being. Times change however and it's possible that we will still remain in and around the upper 2's low 3's for a considerable time ahead.
What's going to hurt is folks who were told they were locked, but now find out they weren't. I've run into this multiple times as refinance competition is heating up. Homeowner A is quoted 2.5 on Monday by me, but gets a 2.25 quote from Lender B on Tuesday. By Friday, I get the call "Um... do you still have that rate we talked about Monday?" Unfortunately now the answer is "No, Monday rates no longer exist on a Friday." Live and learn.
No. Sales and values won't collapse in a 3.5% - 3.75% rate market. For every well priced home under contract there were 10 offers behind them who did not get the home. If seller's lose a buyer for any number of reasons other than rate, another buyer is waiting in the wings to replace the original buyer.
The way to think of it, I personally rather buy cheap with a higher interest rate than high with a low interest rate. You can always refinance lower but you can never lower your purchase price.
We are -42 bps now. 101.53. We are going down down baby back to April/May-ish rates.
We are -42 bps now. 101.53. We are going down down baby back to April/May-ish rates.
sgip
Well-known member
Looks like Guaranteed Rate bought Owning and Stearns right at the wrong time:
https://www.housingwire.com/articles/guaranteed-rate-acquires-dtc-lender-owning-corporation/
https://www.housingwire.com/articles/guaranteed-rate-acquires-dtc-lender-owning-corporation/