fbpx
Close More Deals

iBuying Bidding Wars, Rising Mortgage Rates, and Digital Business Development

iBuying firm Opendoor helps buyers make cash-backed offers to improve chances in a bidding war

  • To participate, buyers will have to get prequalified with Opendoor Residence Loans or another mortgage firm. 
  • Opendoor will then pair the client with a real estate professional affiliated with the company, who will review their offer for a home before submitting it to the seller. 
  • The company will back the buyer’s offer with cash, allowing buyers to submit an offer free of financing, appraisal, or home sale contingencies.
  •  Opendoor promises the seller that it will buy the home with cash if the client is unable to get financing.

Source

Rising Mortgage Rates Could Erase Home Buyers’ Increased Spending Power

  • A new report by Redfin helps consumers understand what the steady climb of mortgage rates means for buyers who have been sitting on the fence waiting for a lower rate to roll around.
  • A home buyer would lose $23,250 in spending power with a mortgage rate of 3.25% versus a 2.75% rate, where they were sitting earlier this year.
  • At 3.25% interest rate, a buyer can afford a $506,000 home for $2,500 per month, down from the $529,250 they could afford on the same budget with a 2.75% rate.
  • Additionally, inflation may change the aspect of home buyers’ finances: It could change earnings, change budgets and even change mortgage rates.
  • If you go to Freddiemac.com you will see mortgage rates and how that have changed since 1970.

Source

You’re behind If You Are Not Conducting Business Digitally

  • Due to the pandemic, the real estate industry quickly adjusted to digital-first.
  • According to a May 2020 study from the National Association of Realtors (NAR), 41% of buyers said they could envision buying a home without ever physically stepping inside.
  • 70% of buyers and 67% of sellers said they were comfortable with conducting all business on a computer
  • 62% of buyers believe it is essential that an agent/broker be knowledgeable about ways to electronically sign some or all closing documents.

Source

Is your business adapting to the ever-changing real estate market? Could it be doing better? Schedule a free strategy session with our professional business analysts to find out!

Picture of Cody Eckman

Cody Eckman

Cody cares way too much about obscure facts, subtitles, and small domesticated animals. He spends most of his personal time writing freelance or planning his next novel in ways that evoke thoughts of conspiracy theorists and their dubious pegboards. He tried writing a screenplay once and gave up after it set many fires, ran away with his wife, and threatened every local kitten in a four-block radius. Cody loves all things geek and nerd. When he’s not writing, he’s probably actively avoiding it and you can find him playing with Toby – his ginger tabby – cooking, hiking, or remembering some cringey thing he said seven years ago.