7% Rates Killing Local Real Estate Sales
Real Estate Realities With The RebelBroker
Release Date: 03/06/2023
NAR Settlement - For Buyers And Sellers
Real Estate Realities With The RebelBroker
The NAR settlement is in the final stages of approval and will likely go into effect in the middle of July 2024. It is not an understatement when I say that this change to how buyers agents are being compensated will introduce chaos into the real estate world until the systems in place adapt to this new reality. BUYERS HIT HARDEST These changes will leave Buyers having to directly pay their agents themselves. However, none of the current systems in place, including lending, are ready for this change. While it will lead to many more options for buyers in terms of representation, it also...
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California Deficits And Taxes 2024
Real Estate Realities With The RebelBroker
Things are looking rough for California residents in 2024. A nearly $100 billion dollar surplus has been turned into $73 billion (and growing) deficit. Sadly, the solution from Sacramento seems to be doubling down on the policies that are causing many of these issues. New changes to the law have been proposed that will be voted on later this year designed to make it easier for California politicians to raise taxes. In addition, this approach seems poised to try and challenge the one thing that has at least kept property taxes at bay - proposition 13. Instead of making the needed...
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Digital Curb Appeal
Real Estate Realities With The RebelBroker
Welcome to "Real Estate Realities with The RebelBroker" – your go-to podcast for expert insights into the dynamic world of real estate. In this episode, we delve into a crucial aspect of selling your home: digital curb appeal. In today's digital age, first impressions are made online. Potential buyers scroll through listings, making split-second decisions based on visual appeal. That's where mastering digital curb appeal comes in. Join us as we explore the art of crafting compelling digital presentations for your property. From stunning photos capturing every angle to immersive virtual tours...
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Local Pending Sales Vs. The National Trend
Real Estate Realities With The RebelBroker
In this episode, dive deep into the intriguing world of real estate data with Robert Whitelaw, the seasoned real estate broker from Morgan Hill, California. Join us as we unravel the disparities between pending home sales on a national scale and the dynamic market of Santa Clara County. 📊 Key Takeaways: Analyzing the latest trends in pending home sales nationwide. Unveiling the unique factors influencing Santa Clara County's real estate landscape. Expert insights into what these divergences mean for both buyers and sellers. Whether you're a seasoned investor or a first-time homebuyer,...
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De-Mystifying Home Status
Real Estate Realities With The RebelBroker
Welcome to "Real Estate Realities with The RebelBroker," your go-to podcast for demystifying all things relating to real estate, including the status of homes for sale! Join us as we navigate the dynamic world of real estate, providing valuable insights and expert analysis. 🏡 Unlock the Secrets: Delve into the nuances of home listings – from active and contingent to pending and sold. We break down the complexities, empowering you with the knowledge needed to make informed decisions. 🔍 Insider Perspectives: As a seasoned real estate broker with over 35 years of experience, The...
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What's Wrong With Real Estate Agents?
Real Estate Realities With The RebelBroker
Welcome to another eye-opening episode of "Real Estate Realities with The RebelBroker"! Today, we're diving deep into a topic that affects both seasoned and aspiring real estate agents—the real problems plaguing today's real estate professionals. Join me as we explore the notion that bad agents are made, not born. Many agents are trained to prioritize quantity over quality, a trend that leads to a decrease in overall service quality. As agents focus on increasing their transaction numbers, key metrics that matter to clients often fall below average. We'll uncover shocking examples, like a...
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New FHA 5% Down Multifamily Loan!
Real Estate Realities With The RebelBroker
Welcome to another edition of Real Estate Realities! Today we are covering the FHA loan for multifamily purchases that just got WAY better. In fact, it makes it possible for much easier house hacking! Don't know what house hacking is? Not sure why I am so excited about changes to a loan? Then make sure to check out todays show and realize that this could be the first step in reaching your real estate empire goals! —————————————————————————————————————————————————— ➡️ Instagram: ...
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Questioning the $1.8B Realtor Conspiracy Verdict
Real Estate Realities With The RebelBroker
In this episode of Real Estate Realities with The RebelBroker, we delve deep into the crucial topic of compensating real estate agents when selling your home while keeping in mind the recent court case where Sellers won a $1.8 billion judgement against the National Association of Realtors and a number of real estate brokerages. Finding the right compensation structure is pivotal for buyers, sellers and agents, impacting the quality of service and the overall success of the transaction. This latest court case covers ground that have been visited many times over the years. However, in todays...
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Interest Rates Hit 23 Year High!
Real Estate Realities With The RebelBroker
As interest rates snuggle up to 8%, we find ourselves in a place that we have not been in 23 years! An entire generation of business people, home buyers and home sellers have become comfortable with interest rates in the sub 5% range. So what will this interest rate mean for home buyers, sellers and investors? Could this be the element that finally tips the scales and causes a boost in inventory that brings down sales prices? We will explore all of that in todays podcast! ...
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2023 California Rent Control Laws Will Ruin The Rental Market
Real Estate Realities With The RebelBroker
Welcome to "Real Estate Realities with The RebelBroker," the ultimate destination for in-depth explorations of recent California rent control real estate law changes. With our finger on the pulse of recent California legal changes, todays podcast serves as your comprehensive guide to understanding the nuances of the ever-evolving legal landscape governing landlords, tenants, and homeowners in the Golden State and California rent control efforts that seem to grow each year. In today's show, we embark on a journey through the recent law changes in California, unraveling their impact on property...
info_outlineThe recent increase in national interest rates has caused quite a stir in the real estate industry, and it is not surprising that many prospective homebuyers are feeling the pinch. With interest rates hovering around 6.97%, it's no secret that home sales will decline. The real question, however, is how buyers and sellers can navigate this situation to ensure that their interests are protected.
In Morgan Hill, San Jose, and Gilroy, the 30-year fixed loan interest rates for those with excellent credit are about 6.46%. While this may seem like a small difference, it can add up to thousands of dollars over the life of a mortgage. So, what can buyers do to get the best deal in the current market?
One strategy that buyers could use is to "house hack" by purchasing a multifamily home instead of a single-family home. In this scenario, the buyer purchases a property with multiple units, living in one unit and renting out the others. By doing so, the buyer can offset their mortgage payments with rental income, which can be a significant advantage in a high-interest-rate environment.
Additionally, buyers should focus on multifamily units of 4 or less to get advantageous interest rates as an owner-occupant. This is because loans for properties with more than four units are considered commercial loans, which come with higher interest rates and stricter lending requirements.
Buying a multifamily allows buyers to get more bang for their buck, as they can potentially generate income while still building equity in their property. It's a smart strategy that can pay off in the long run, especially in the current market.
However, buyers should also be aware that the coming months of March, April, and May tend to be big sales months that will be depressed by these higher interest rates. This means that there may be less competition in the market, which could work to the advantage of buyers who are looking to purchase a property.
Sellers, on the other hand, should consider offering seller financing in order to attract more buyers who are struggling with currently high interest rates. This option allows the seller to act as the lender, providing financing to the buyer in exchange for a promissory note and a mortgage or deed of trust. Seller financing can be an excellent option for buyers who may not qualify for traditional financing or who are looking for a more flexible loan structure.
However, it's important to note that seller financing may not be possible for sellers who have a current loan on the home. In this case, the seller may need to pay off their existing loan before offering seller financing, which can be a significant hurdle.
Overall, the current high-interest-rate environment presents both challenges and opportunities for buyers and sellers in the real estate market. While higher interest rates may cause home sales to decline, savvy buyers and sellers can still navigate this situation to their advantage.
For buyers, house hacking with a multifamily property and focusing on properties with 4 units or less can be a smart strategy. For sellers, offering seller financing can be a way to attract more buyers who are struggling with high-interest rates. Ultimately, success in the current market will depend on staying informed and being willing to adapt to changing conditions.