The same dynamics that make it such a great seller's market also make life really hard for home sellers these days.
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Hello, LOs!
The same dynamics that make it such a great seller's market also make life really hard for home sellers these days.
Though home sellers will likely make a windfall when they finally do sell their property, they'll have to also deal with the soaring costs of ancillary services, out-of-whack timelines, as well as high prices and low inventory when they become the buyer.
Need a handyman to come over and touch up some imperfections as a condition of the close? He won't be available for weeks, maybe months. Because of high demand, the moving company will charge a premium when you eventually leave.
And what happens in an emergency appliance situation? Take my parents, for example. They're in contract to sell their suburban home in New Jersey to a young family. Today, the compressor of the fridge died. No repairman is available to get to it for at least 10 days, and who knows if parts are available? The contract says the fridge – or a better version of the one that broke – has to be there for the buyers.
A lot of these factors – along with delays due to the appraisal shortage – are contributing to mortgage closing times around the 50-day mark in the purchase market.
One thing that's been apparent of late is that the supply chain is going to remain very disrupted for at least a few more months. That's going to complicate a lot of purchase deals through the summer. (And we haven't even gotten to the horror show that is trying to buy new cabinets.)
So, LOs, lemme ask you: What's contributing to delays in your markets? How are you handling these types of situations with clients? You can message me anonymously at jkleimann@housingwire.com.
Mortgage rates fluctuated again last week, back down 5 basis points to 2.95% after managing to pop back up to 3% the week prior, according to Thursday data from Freddie Mac's PMMS.
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