How To Save Money On Real Estate in 2022
The Real Estate Market in 2022
In recent years, the real estate market has become increasingly difficult for buyers to enter, whether through the general price of homes, available mortgage rates, housing inventory, or any combination of the above factors. So far, experts predict that 2022 will continue to be a relatively difficult year for those looking to purchase a home- though, with the right strategy and team at your back, you can absolutely do so.
Rising mortgage rates seem to be the biggest indicator and shift in the 2022 housing market so far, with the 30-year fixed-rate average mortgage rising up to an average of 3.22% interest rate in the first week of January- this marks the highest level of average mortgage rates since May 2020.
Experts anticipate that mortgage rates will continue to climb throughout the year, in part due to the economic recovery from COVID-19, although, the worldwide effects of the ongoing COVID-19 pandemic are extremely difficult to predict due to new variants such as Omicron.
With regard to housing prices, many aspiring buyers may be wary of the sharp increase in prices that 2021 brought. Luckily, however, many professionals within the real estate industry predict that in general, that 2022 will be a more balanced year than 2021. Prices are not expected to drop, and are even expected to continue increasing, but at a much slower and more manageable rate.
Similarly, low housing inventory was a key indicator in 2021, with the number of houses for sale declining, and with the houses that were listed being sold in an average of approximately two weeks. While this will continue to be a trend in 2022, experts state that the changing world, with work-from-home schemes becoming an office norm, may allow buyers to expand their geographical search and find their dream home in a location they may not have been able to pre-pandemic.
Overall, in 2022 it is expected that the housing market will remain a seller’s one, with rising interest rates, prices, and relatively low inventory. Each dollar counts. However, with the right real estate brokerage at your service, you can still purchase your ideal house while simultaneously saving money.
How Can YayPad Help You Save?
One of the best ways to save money on a house purchase in 2022 is to work with a brokerage that works hard to get you the best bang for your buck. For example, with Yaypad’s commission rebate, you’ll automatically save thousands of dollars to put towards your purchase.
In general, when you use a real estate brokerage, you will pay a commission fee of approximately 5-6% of your home’s purchase price for their services. Real estate agents generally receive half of that commission fee, earning a personal commission of approximately 2.5-3% for each purchase they assist with. However, when working with YayPad, you will automatically receive a real estate agent commission refund of 50%!
Your exact savings will depend on the cost of your home. To illustrate, if you were to purchase a $800,000 home, here’s what the cost breakdown would look like:
$800,000 x 2.5% (agent commission) x 50% (your refund) = $10,000
That’s five figures back in your pocket, simply by choosing Yaypad. Estimate your personal commission refund here.
Overall, even in a difficult housing market, the thousands of dollars you save with YayPad can enable you to purchase the home of your dreams.