In this week's episode, John and Bryan are here to talk about the housing inventory, what it's been doing, and where it is going. John starts us off with some statistics mentioning that we are up nationwide on average with a 30-35% return on your investment. If you have invested in anything other than real estate right now you are watching your money burn. Rates are increasing as fast as Bryan says he can remember, and in the 25 years John has been in the industry, this is the tightest inventory he has ever seen.
The guys discuss some strategies to help get deals across the finish line when there are multiple offers, including utilizing services from Ribbon or EasyKnock. Bryan wants to encourage buyers in this market who are tired to keep going and don’t give up. Inventory isn't improving, so waiting will put you in a far worse situation. Later in the episode, John explains that the cost of waiting almost 2 years to buy is almost a double payment. Although you may experience sticker shock now, you will get an opportunity to refinance, and your payment will come down.
One great strategy that Bryan suggests is for buyers to stop putting down 20%. "If you are a conventional buyer, put down 5%. if you have great credit, ask about upfront MI and you may be able to buy out the MI for 1.5 or 2 points. You can use the extra cash for the bid over asking." Currently, buyers are always having to bid over the asking price to win the deal.
John explains that you need to be aware of misleading information out there. He recently read an article mentioning that we are in a crash, even though property values are going to continue rising. Don't wait to purchase. Pull the trigger today, and you will have a chance eventually to lower your rate.
"As loan originators, your job is to help people create the largest debt they will have in their entire life, so it isn't something to take lightly," says Bryan. These are the conversations that originators need to be having with their buyers with full transparency. This adds to your credibility and will benefit you down the road when it's time for them to do a refinance and they remember what you told them.
As professionals in the industry, you have to help your borrowers make educated decisions. When it's time for a refinance, you must be able to show your clients what opportunities they have with the wealth in their homes by helping them make the decisions that are right for them.
Your co-hosts are Bryan Lovell, National Director of Business Growth at VanDyk Mortgage, and John Jones, Florida Regional Manager at VanDyk Mortgage. Bringing you the latest insights into the home industry! This Podcast is for Brokers, Lenders, Realtors, Clients, and those who want to create homebuying success.
Check us out on social media:
• Facebook: www.facebook.com/Contacts2Contracts
• Website: ctcpodcast.co
Bryan Lovell:
• Personal Facebook: www.facebook.com/bryan.lovell.56
• Linkedin: www.linkedin.com/in/bryanlovellteam
John Jones:
• Personal Facebook: www.facebook.com/johnjonescb
• Linkedin: www.linkedin.com/in/johnjonesvandykmortgage/
Disclaimer: This podcast is sponsored by VanDyk Mortgage Corporation NMLS# 3035 | nmlsconsumeraccess.org | Equal Housing Lender | VanDykMortgage.com | 2449 Camelot Ct. SE, Grand Rapids, MI 49546 | 888-482-6395
