Gosh, I’m sick of talking about rates. But, if you or someone you know are considering buying a home, you do need to know what mortgage brokers are currently offering. In the past, brokers have offered a 2:1 buydown. Now, an effort to combat rising interest rates, they are also offering a 3:2:1 buydown. This concept can be confusing so I’ll give you the basics. A buydown refers to the interest rate of the loan starting in year one and cascading downward from there. Example: On a 2:1 buydown, if your interest rate is 6.5% on the first year of a jumbo loan, the buydown changes it to a 4.5% rate the first year. Then, in the second year it is reduced from the 6.5% to a 5.5%. Essentially whatever your rate is, you can lower it by 2% the first year and 1% the second year.

The same math applies to a 3:2:1 buydown. In this case the first year is 3% lower, then 2% the second year, and 1% the third year. The idea is to get the rates lower to allow more affordable monthly payments for the first 2-3 years with the idea that interest rates will come back down enabling you the ability to refinance at the better rate in the future. With that said, this doesn’t make sense for everyone. Call me if you want to see if this strategy could work for you.

Everyone begins to shy away from buying or selling a home around this time of year. But should they? Here is my advice.

For buyers: The best deals always occur at the end of the year. I believe that will be even more so this year. You may be asking, who wants to sell during Thanksgiving or Christmas? The answer is sellers who are pushed to a deadline for work or retirement or some other life event. Buyers are generally fewer during the holidays as well for the same reason, I mean, who wants to buy and move during the holidays? Sellers know this will lead to more days on the market and thus they will be more willing to accept less money to get a faster sale.

For sellers:  Unless you have a life event that is driving your need to sell (see above), I would advise potential sellers to use this time to prepare their home and list early next year. It’s very likely the spring market will still be the best time to sell. So, come up with a plan now. My team and I can put you and your family on the correct path to get the most for your home in any market.

The buzz in the media these days are housing price reductions. Is it true? I have researched all of the current data on the NWMLS. What is true is that average Days On Market (DOM) have increased this year. They have gone from 8 days to 15 DOM. To me, this means that well priced homes are still selling in a short amount of time – historically, that’s pretty darn good. What is driving the news about price reductions is that some agents are still pricing homes based on the spring’s market pricing – typically newer agents. These homes sit on market for longer periods and then are forced to make price reductions. My advice: work with an experienced agent who keeps a close eye on market trends.