April 2nd, 2024 4:55 PM by Eric Willner
Radio Show Notes 03/27/24 Wednesday:
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"The Real Estate Show's Midweek Report: Buy the Right Property the Right Way!"
By Eric Willner, Host of The Real Estate Show, America’s longest running daily radio show about real estate.
Welcome to the Real Estate Show – South Florida’s #1 Real Estate Radio Show and America's longest-running daily radio show about real estate. I'm your host, Eric Willner, known as the Voice of Real Estate and the founder of America’s longest-running daily radio show about real estate. Today is the Wednesday Midweek Mortgage & Market Report Edition of The Real Estate Show, where we continue to talk about why NOW is the right time to buy real estate using the theme of "Buy the Right Property the Right Way." (Right Now)
Did you know investing just $100 per month with a 7% annual return could grow to over $1 million in 40 years? Starting small and letting your money grow over time can be powerful. Now imagine if that $100 dollars was the monthly principal pay down or equity contribution every month built into to your monthly housing payment! That’s TWO assets growing at the same time!! Tax advantaged!
Want to do it in less time? Stay tuned!
Now imagine paying $2000/mo rent which is $24,000 per year of pure wasted expense – with no tax advantages! Assume the rent never goes up – which is a stupid assumption – after only 10 years that’s $240,000 gone with nothing to show for it. Do THAT your whole 40 year career and you will have literally burned $1,000,000!
Buy and for sure have $1MM in 40 years or rent and you will waste $1MM in 40 years!
That’s why today’s show is about "Buy the Right Property the Right Way" and how crucial it is to understand this process for success in real estate. Before we dive into the details, let me remind you of this week’s special FREE Workshops:
So, here's the Financial Edge. It’s the education and knowledge that moves the needle. We believe in a 3-pronged approach:
Let's talk about it...
Here are the top trending topics for today’s update:
From BankRate.com: Today's national 30-year mortgage interest rate trends:
For today, Wednesday, March 27, 2024, the current average 30-year fixed mortgage interest rate is 6.97%, up 7 basis points over the last seven days. If you're looking to refinance, today's current average 30-year refinance interest rate is 6.91%, increasing 6 basis points from a week ago. Mortgage rates have jumped around but remain elevated. In 2024, experts were predicting the 30-year mortgage to slowly shift down, eventually landing under 6 percent. Mortgage rates change constantly, however, and many factors could play out between now and year-end to change those projections.
Why it matters: These trends affect affordability and demand in the housing market, directly impacting your strategy for buying the right property.
From Realtor.com: February home sales spike 9.5%, the largest monthly gain in a year, as supply improves:
Why it matters: Increased sales and inventory can provide more options for buyers, but competition and rising prices remain challenges to buying the right property.
From CNBC: What a $418 million settlement on home-sale commissions may mean for you:
The settlement agreement doesn’t say that the buyer’s agent will not be paid nor that the buyer’s agent cannot charge fees.
“The big question here is who is going to pay for those services moving forward. Will it ultimately be a buyer that will have to get the buyer’s agent’s commission together, on top of closing costs and on top of down payment?” Cobreiro said.
While commission fees are negotiable between involved parties, knowing what cards you have on the table as a homebuyer will be more important now than before. Using an agent will still be a smart way to achieve that, experts say.
“A great local agent can give you a competitive advantage,” said Amanda Pendleton, a home trends expert at Zillow Group. That’s especially true as low-priced starter homes are expected to remain in demand, she said.
Here are two things to know about how the settlement could change the process of buying a home:
1. Buyers could be responsible for their agent fees: Historically, real estate commissions typically come out of the seller’s pocket, and are split between the buyer’s and seller’s agents.
As a result of the settlement, the seller will no longer be responsible for commission fees for a buyer’s agent. So this is a new potential charge buyers need to consider in their budget. Historically, if a buyer’s agent got half of a 5% or 6% commission, that equaled thousands of dollars.
For example: The median home sale price by the end of 2023 was $417,700, according to the Federal Reserve. That would mean commissions at a 5.37% rate — the 2023 average rate, according to Lending Tree — amount to roughly $22,430, about $11,215 of which might go to the buyer’s agent.
But bypassing an agent’s services may not lead to direct savings, especially for first-time buyers, experts say. You could put yourself at risk by leaving the homebuying process entirely to the seller and their agent, said Cobreiro.
Sometimes things show up in your home inspection report that merit a credit from the seller, but if you don’t have an agent, the seller’s agent may not volunteer that, said Cobreiro.
Doing so would be a breach of their fiduciary duty to the seller, and it affects their commission if the price of the property declines, she said.
“Signing the contract is the least of it; there’s so many things that happen throughout the transaction that really require the expertise and the navigation by someone who understands the process,” she said.
Why it matters: Changes in commission structures could affect home affordability and the overall buying process.
Remember: It’s a stone cold fact that Real Estate is THE best investment. Period. So get yours today!
Tune in again tomorrow for the “ATM Edition – About The Money”. Also, don’t forget to share this show with others who should own real estate. Thank you for listening, and remember, don’t just listen, use our show to get started in real estate investing. See you tomorrow!
Also, you can listen to the entire 30 minute broadcast of any day’s edition of The Real Estate Show by clicking on the audio link on that days summary post. You can also watch the Facebook Live video at www.facebook.com/TheRealEstateShow.
Want to know more? If you are serious about real estate and paying off debt, then find out more on today and every day’s episodes and learn more about Real Estate Investing and learn HOW TO by listening to The Real Estate Show with Eric Willner , Live every weekday morning at 9 o’clock (EST) on Florida’s Money Talk Radio stations WWNN AM1470, FM 95.3 and FM 96.9. You can also hear us on the free apps: iHeart Radio and TuneIn. Recorded Rebroadcasts are available 24/7 on Facebook. Please share this and our Facebook updates.
Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way, on autopilot. - The Automatic Landlord way. (AutomaticLandlord.com) You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.
Also listen to the rebroadcasts on demand on Facebook.com/TheRealEstateShow
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