Austin Klar's clients bought a West Portal home for $1.8 million, $200,000 below asking, despite 7% mortgage rates. They refinanced a year later at over 1% lower and the home appreciated $165,000. The strategy beat buying a $2 million home today at 6%.
This is exactly why you aggressively pursue opportunities in a higher interest rate environment. I got clients into this property in West Portal less than a year ago, and at the time they were being quoted interest rates well over 7%, but they weren't deterred by it. Instead, they saw it as an opportunity to get the best price possible, and if interest rates happened to come down, they'd refinance later. And that's exactly what they did. They were super aggressive with their offer, got it for $200,000 under ask, $1.8 million, but 10% under ask. Right now they're refinancing. They're getting a rate that is more than 1% lower than the rate they had when they bought it, and the appraisal report just came back on the property, and it appraised for $165,000 more than what they paid for it less than a year ago, almost 10% higher. It's a huge win for them. They now have more equity in their home. They have lower monthly payments than they would have if they bought the house today for $2 million with a 6% rate. I'm super excited. They were able to secure the property at a great time. Follow me for more Bay Area real estate. [FOREIGN LANGUAGE]
