Dave Ramsey has blunt warning on real estate, housing market | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

On March 26, Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), finding that the weekly 30-year fixed-rate mortgage (FRM) averaged 6.38%.

“The housing market continues to show gradual improvements compared to a year ago amid recent rate volatility,” said Freddie Mac chief economist Sam Khater. “Purchase and refinance applications are up year-over-year, and rates remain lower than last year when they averaged 6.65%.”

The next day, the daily 30-year FRM hovered near 6.7% before settling at 6.64%, according to Mortgage News Daily (MND).

“There were mixed blessings in the mortgage rate world today,” wrote MND chief operating officer Matthew Graham. “The bad news is that today’s rates are just a bit higher than yesterday’s, resulting in another 8-month high. The good news is that things were looking quite a bit worse earlier in the morning.”

“Mortgage lenders prefer to set rates once per day even though those rates are dictated by movement in the underlying bond market,” Graham continued. “If bonds move enough, lenders will change rates mid-day. Today was one of those days and, fortunately, the change was in a friendly direction.”

Dave Ramsey warns Americans about importance of real estate agents

As mortgage rates rise, homebuying and selling become difficult, rattling the housing market amid a drop in sales.

As these economic trends affect individuals, bestselling personal finance author and radio host Dave Ramsey offers a warning about real estate investments, such as homes.

“Whether you’re buying or selling a house, you’re dealing with a lot of cash,” Ramsey wrote. “But here’s the thing — just one mistake during the home-buying or home-selling process can cost you tens of thousands of dollars.”

“So, it’s no wonder why 88% of all buyers and 91% of sellers decide it’s worth working with a real estate professional,” Ramsey continued. “Because when you have a solid pro on your side, they’ll take care of the nitty-gritty details.”

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Ramsey acknowledges that working with a real estate involves expenses, but argues that those costs are justified.

“Real estate agents are usually paid via commission (for example, 3% of a home’s purchase price) for helping you close on a home,” Ramsey explained.

For example, if a home sells for $400,000, a 3% commission would give both the listing agent and the buyer’s agent about $12,000 each.

Dave Ramsey acknowledges that expenses exist when using a real estate agent, but argues that those costs are justified.

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Dave Ramsey explains value of real estate agents

Ramsey clarified his view that real estate agents are very much worth the money.

“When you hire a buyer’s agent, you’re getting someone on your side who looks at hundreds of homes every year and helps tons of families navigate the home-buying process,” Ramsey wrote. “A buyer’s agent brings experience, market knowledge and negotiation skills to the table that can save you time, money and a ton of stress.”

Ramsey lists top buyer’s agent tasks

A strong buyer’s agent helps you identify the right home in the neighborhood that best matches your needs.
They spot potential problems early so you don’t overpay or end up choosing a property that isn’t a good fit.
They make sure you don’t overlook a home that could actually suit you well.
They negotiate effectively on your behalf and work to protect your best interests throughout the process.
They keep a close eye on new and updated listings so they can point you toward homes that match most of the features you’re looking for.
They show you the strongest options and, when you find one you like, they help you prepare and submit a solid offer.
After your offer is accepted, they arrange the home inspection and manage any needed repairs or contract updates.
They make sure you don’t end up with a bad deal or miss important details buried in the paperwork.

(Source:Ramsey Solutions)

Ramsey lists top seller’s agent tasks

A home seller’s agent has similar qualifications, but from the other side of the transaction, Ramsey explained.
A good seller’s agent gives you confidence and peace of mind when you’re preparing to sell your largest asset.
They bring deep market knowledge and help you set an accurate, competitive listing price.
They manage the marketing of your home and coordinate showings with qualified buyers.
They guide you through evaluating offers and negotiate to secure the strongest possible deal.
They walk you through how to stage and present your home so it appeals to buyers.
They use their knowledge of recent sales in your area to help you set a competitive, realistic price.
They promote your home widely — through the Multiple Listing Service (MLS), social media, and advertising — to attract as many buyers as possible.
This broad exposure helps your home sell quickly and for the strongest possible price.

(Source:Ramsey Solutions)