After attending a great workshop this week, I wanted to share some thoughts by Realtor.com speaker Joe Sesso.
Not sure that this is the right time to buy? Are you waiting around to see if the value of your own house will increase before making a move? There are two important reasons why waiting may hurt you more than you realize.
1. Interest Rates, Interest Rates, Interest Rates…
Interest rates are extremely low right now. Have you really considered how much interest rates actually affect the amount of home that you may qualify to buy? Every HALF point increase in interest rates gives you $25,000 LESS purchasing power. So, if rates increase even 1 point in the next year, that means $50,000 LESS in purchasing power.
2. Motivated Sellers: Many people just cannot afford to sit and wait for property values to increase anymore. They must sell their homes. Houses are sitting vacant, and many sellers are paying two mortgages. Sellers are MOTIVATED. They are very likely to negotiate or even add some perks for qualified buyers. Take a look at the home values.
Yes, your house may not sell for as much profit as you had hoped, BUT just look at what a deal you can find if you purchase a home now.
Looking to sell your home? Call or email me