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Homebuyers are canceling deals at a record rate
Plus: Home sellers overpay agents by $6,000 to $12,000
š Let's rocket into Tuesday.
Today's newsletter is 657 words ā a 2.5-minute read.
1. Homebuyers are canceling deals at a record rate
According to a new Redfin report, roughly 40,000 U.S. home-purchase agreements were canceled in December, representing 16.3% of homes that went under contract that month. Thatās up from 14.9% a year earlier and marks the highest December cancellation rate since records began in 2017.
In Texas, San Antonio had the highest share of canceled contracts at 20.6%, ranking third in the nation.
Source: Redfin
2. Homebuyers sue Rocket Mortgage
A new lawsuit filed Jan. 26 accuses Rocket Companies, including Rocket Mortgage and its affiliated real estate and title businesses, of steering homebuyers toward Rocket loans through paid referral arrangements with real estate agents.
The suit alleges that Rocketās agent network relied on high referral fees and performance expectations that pressured agents to favor Rocket Mortgage, even when other lenders might have offered better options.
Plaintiffs argue this structure crossed the line under the Real Estate Settlement Procedures Act, which bars undisclosed kickbacks and steering tied to settlement services.
āEveryday families rely on the laws governing our nationās real estate market for fairness and transparency, and we believe Rocket has failed to play by the rules. We believe at least hundreds of thousands of consumers have been duped by Rocketās tricks, and judging by its year-over-year revenue, its scheme has worked.ā
A MESSAGE FROM DAVE YOUR MORTGAGE GUY
January is the #1 month people start planning to get divorced and these clients need a Realtor who can advise them on all aspects including the mortgage side of it. I have you covered!
Iām hosting a short webinar Jan 28th 10:30 central:
Getting Divorced? Hereās the Mortgage Game Plan. I will cover:
How the divorce decree overrides mortgage rules
Buying or refinancing before the divorce is final
What is a Owelty Lien?
The Divorce Decree mistake that kills deals
Specific deals Iāve closed
How to be an expert and land more clients!
This will help you confidently handle divorce clients and get you more deals.
Signup now for the Webinar Jan 28th 10:30 Central
3. Catch up quick
šļø Texas leads the nation in supplying new residents to other states. (TexasTribune)
š GDP outperforms forecasts with a 4.4% rise. (BEA)
š° Everything Trump said about housing at Davos. (BAM)
š¶ More Gen Zers are buying homes. (Redfin)
šļø Austin tops the list of growing US cities. (BankofAmerica)
A MESSAGE FROM FISHER INVESTMENTS
Will Your Retirement Income Last?
A successful retirement can depend on having a clear plan. Fisher Investmentsā The Definitive Guide to Retirement Income can help you calculate your future costs and structure your portfolio to meet your needs. Get the insights you need to help build a durable income strategy for the long term.
4. HUD gives landlords 30 days to verify citizenship for nearly 200,000 tenants
HUD ordered all public housing authorities and property owners receiving department-funded housing to verify tenant citizenship and eligibility following an audit conducted with the Department of Homeland Security (DHS).
The audit identified nearly 200,000 tenants requiring eligibility verification, including nearly 25,000 deceased tenants and about 6,000 non-citizens deemed ineligible across federally funded housing programs.
HUD has instructed housing providers to review newly issued Systematic Alien Verification for Entitlements (SAVE) Tenant Match Reports and take corrective action within 30 days.
5. Home sellers overpay agents by $6,000 to $12,000
A report released Tuesday by the Consumer Policy Center (CPC) claims that many Americans are missing out on thousands of dollars in potential savings when selling their homes, largely due to overpaying real estate agents.
The report states that these overpayments stem from āa lack of effective price competition among agents,ā with the typical seller overpaying about $6,000 on a $400,000 home, and at least $12,000 on homes priced at $800,000 or more.
Experts say that introducing greater price competition among agents could shift an estimated $30 billion or more annually from brokers to consumers.
āļø Thank you for starting your day with us!
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