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Recent FAQs in Real Estate

Occasionally I like to share certain questions that clients ask because I am sure there are others who are wondering about these same things. Here are a few questions that have repeatedly come up lately.

 

“Wouldn’t it be better if we waited to buy and let prices come down?”

This question is based on the assumption that prices will come down. In the latest quarterly Home Price Expectation Survey (HPES) where Pulsenomics polled over 100 economists, home prices are projected to go up each of the next 5 years. If this holds true, it would be better to own real estate now and take advantage of those gains.

 

“I found my dream house, but interest rates are too high right now. Should I pass on this opportunity?”

If in fact, this is your dream house, you may only have this chance to purchase it. Interest rates fluctuate with economic conditions. Some people say that you marry your home, but you are dating your mortgage interest rate. If you can afford the home now, it would be best to purchase it now and refinance it if mortgage interest rates ever ease.

I would also point out that the statement, “interest rates are too high,” is not entirely true. Although rates have recently surged, Freddie Mac has been tracking rates of 30-year mortgages since April 1971, and the current rate is still at or below the median rate of 7.41%.

 

“We like the house, but what if it has a problem that we didn’t see?”

Make sure you discuss this with your real estate agent, but most offers written by a Realtor in Central Iowa have a contingency allowing you a specific period of time after the acceptance of the offer to do a thorough inspection. Once the inspection is complete and before the inspection period has expired, you will have an opportunity to negotiate with the seller on any concerns you have. If you are not able to agree on terms with the seller, the offer can become null and void with no consequences to you.

 

This contingency allows you to make an offer on a property and get it under contract based on the fact that you like it, but it also gives you time after your offer is accepted to make sure there aren’t any hidden structural, mechanical, or safety issues that are concerning to you. One important thing I would like to point out about these inspections is that they are not intended to require that a seller bring an older home up to current codes or fix every issue that is brought up in the inspection. 

 

Norwalk IA Real Estate – Jon Niemeyer, Broker/Owner/REALTOR® at EXIT Realty North Star. I list and sell real estate in Central Iowa including Norwalk, Des Moines, West Des Moines, Cumming, Indianola, Carlisle, Waukee, Urbandale, Grimes, Clive, Johnston, Ankeny, Altoona, and Pleasant Hill in the Counties of Warren, Polk, Dallas, and Madison. Call Jon Niemeyer at 515-490-4675.   

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