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Jeff Discher's Blog

By Jeff Discher | Agent in San Diego, CA
  • BUYERS: The Real Estate Market is Shifting?

    Posted Under: Market Conditions in San Diego, Home Buying in San Diego, Home Ownership in San Diego  |  October 3, 2013 4:20 PM  |  290 views  |  No comments


    Seller's Market or Buyer's Market?

    If you have been a home buyer in the last 18 months, you have more than likely been very frustrated. Getting an offer accepted as a buyer has been extrememly competetive and near impossible. It has been the luck of the draw. There has been no real rhyme or reason for getting your offer accepted. Every property under $1 million dollars seemed to have 10 offers on it. A third of the offers were more than likely cash, you would have your conventional with 10-50% down payments, and at the very bottom of the list would be your FHA and VA buyers with minimal down payments and tight guidelines.

    Seller’s would receive these offers and and look at them from a business stand point, typically look at all the cash offer first. It was highly advisible because these buyers would rarely put in an appraisal contingency or a loan contingency. This alone made the “all cash” offer seem desirable. Additionally, these buyers could close in 14 days or less and get the seller their funds ASAP. Another attractive aspect of these buyers as well as the conventional buyer was the fact that the property could be in any condition and there would be no FHA or VA inspection from the banks. With FHA and VA loans, there is a certain criteria and condition that a property would have to be in for the bank to fund the loan. The costs of repairs would generally fall into the hands of the seller, therefore reducing the net proceeds to the seller at the end of the transaction.

    Personally, I love helping people buy homes. Especially their first home. The feeling is unparelled. It is an awesome feeling and one of the main reasons I love my job. That feeling started go away and I was seeing buyers home buying dreams go down the drain. Many people would give up. I am a great negotiator and had a pretty good chnace at getting my clients offers accepted, however, we were at a point in the market where it was all business. Seller’s were looking at bottom lines and which offers would close the fastest with the least stress. In a market where each home has multiple offers, this is the norm.

    In the last couple months, we have seen a shift! With rising interest rates coupled with the winter approaching, the market has cooled for seller’s. We are seeing the inventory starting to pick up and homes are starting to sit on the market a little longer. This is giving the average buyers in the market a chance to buy and actually negotiate. In terms of pricing, we are seeing a flattening of the market in most areas and even price reductions. Buyers now have a chance and a choice of homes to look at. Some price points are still low in terms of  inventory, however, most price points between $300,000-$1,000,000 are loosening up.

    If you are a buyer in the San Diego real estate market that has been frustrated, it’s time to get back on your horse. The time is now to start looking. Interest rates are steady and still at record lows. Inventory is picking up and winter is here. We never know what the future hold’s so don’t wait too long. If you are in a position to buy, get motivated and start looking!

    If you need a Realtor that knows the market and will put your best interets at heart, give me , Jeff Discher 619-887-2800 a call.

  • How Will Rising Interest Rates Affect Home Sales?

    Posted Under: Market Conditions in San Diego, Home Buying in San Diego, Home Ownership in San Diego  |  August 21, 2013 1:19 PM  |  542 views  |  2 comments



    If you thought interest rates would stay in the 3%’s forever, you were wrong! After over 18 months of interest rates hanging around in the 3%’s, we have finally seen a hike. Interest rates jumped over a full point within a 3 week period. Although it sounds like some buyers may have missed the boat, this is not the case at all.

    The average rate for a typical 30-year fixed mortgage, including principle and interest is currently on average 4.5%, rising from the previous month of 3.5%-3.9%. For the average buyer between $150,000-$400,000, monthly payments do not go up dramatically. For a $300,000 mortgage, the difference in payment going from a 3.5% interest rate to a 4.5% interest rate is approxemetely $173.00 per month based on a 30 year fixed loan.

    If this increase in payment is too much for a consumer to handle, they can reduce the purchase price of the home they are looking for slightly, approxemetely 7%. Again, we have been spoiled because even at 4.5%, interest rates are still extremely low historically. Take advantage. There are no sure signs that rates will be getting any better. Rising interest rates often cause people to act quickly and jump into the housing market – which can start to increase home prices in tight inventory markets as these potential buyers get more serious about homeownership.

    If you have been on the fence about purchasing a home, I would act sooner than later. Consult with an experienced Realtor and mortgage broker to come up with a plan and establish your purchasing power and what you are comfortable spending. Another thing to consider is meeting with your tax consultant to see how the interest write off will affect your monthy payment and your affordability.

    Start acting sooner than later! You see the market is changing and interest rates are on the rise. Don’t wait until you are priced out of the market. Start getting your finances in order and looking at your savings to see what type of down payment you are comfortable with. Down Payments start at 3.5%  for FHA and go up from there. Buying a home is a lengthy process and and there is much to understand so make sure you align yourself with the right people to put yourself in the best position.

    Now you are ready to start the process of home ownership!

    For any additional questions or to work with me personally, please contact me directly at
    619-887-2800.

 
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