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July Real Estate Roundup: 3 Top Tips for the Current Market

Tuesday, July 23, 2024   /   by Joe Johnson

July Real Estate Roundup: 3 Top Tips for the Current Market

Wow - we’re halfway through 2024! As we look at the rest of the year, I’ve got a few tips on how to help your buyers navigate the current market conditions as they prepare to purchase.?? 


1. Paying Discount Points Can Help the Right Buyers 


With average interest rates hovering around 7%, combined with higher home prices, more buyers are choosing to pay a partial or full point to buy down their interest rate in exchange for a lower monthly payment.? 


It used to be that the general rule of thumb was for every discount point your buyer paid, their rate would decrease by .25%.? However, in the current market environment, we’re seeing that paying a full point can save from .25% - .50% in rate, or even paying a partial point can save .25% on the rate.?


2. Closing Costs Have Risen 


We discuss this often, but it bears repeating: the old 3% for closing cost in many markets no longer holds true. 


As mentioned above, buyers may pay discount points. Additionally, inflation and the cost of compliance play a role as well.?Appraisal fees have increased, attorneys have raised their closing fees, and lender fees for verifying employment, Social Security numbers, running fraud checks, and so on have increased too.?Of course, if the property is in a flood zone, requires a well or septic inspection, a foundation certification or a condo questionnaire, this will add to the overall cost.?In addition, if your client elects to obtain a survey or is paying a realtor admin fee, this will also impact the total settlement expenses. 


Because many of these fees are fixed costs, for sales prices under $350,000, the percentage of sales price increases.?We are seeing closing costs run closer to 4%, but they can be higher or lower depending on many factors.


3. “Pre-approved" Means More Than “Pre-qualified” 


Pre-approvals are always better than pre-qualifications, and there is a big difference. 

“Pre-qualified” simply means your buyer and I have a general conversation about what they can afford based on what they tell me about assets, income, etc. No credit is pulled, and no documents are required or reviewed. 


Call me with any questions you have.

Reiner Realty
Rene Reiner
2923 Brambleton Ave. SW
Roanoke, VA 24015
540-793-4095
Joel Balsley
NMLS#210455
Licensed in VA
Office #: 540-278-1430
Mobile #: 540-597-8877
joelbalsley@atlanticbay.com



Featured real estate company is not a mortgage lender and so you should contact Atlantic Bay Mortgage Group, L.L.C. directly to learn about its products and your eligibility for such products. The featured lender has an affiliated business relationship with the featured real estate agent. You are under no obligation to use the featured lender for financing. All loans subject to income verification, credit approval and property appraisal. Not a commitment to lend. Atlantic Bay Mortgage Group, L.L.C. NMLS #72043 (nmlsconsumeraccess.org) is an Equal Opportunity Lender. Located at 600 Lynnhaven Parkway Suite 203 Virginia Beach, VA 23452.
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