Janel Voth Realtor

The cost of waiting to buy.

You may be asking yourself what this phrase even means. After all, delaying a home purchase allows you to save more money, right? Actually it may not...

The “cost of waiting to buy” represents the additional funds needed to buy a home if prices and interest rates were to increase over a period of time. When one or both of these values increase, you will pay more to own your home.

If you’re thinking of buying a home, but don’t feel quite ready, think again! You may think waiting a few months won’t make a big difference financially, but the real estate market has shown it can — and will!

To determine if you should buy now or wait another year, ask yourself two simple questions:

1 - Do I think home values will be higher a year from now?
2 - Do I think mortgage rates will be higher a year from now?

When interest rates rise or property values increase, so does your monthly payment.

Additionally, if you are renting you are missing the opportunity to pay down the mortgage. For instance, if you’re currently renting at $2,000 a month, that money is considered a loss. However, if you’re paying $2,000 a month towards a mortgage, part of that money is going towards the principal of the loan and you’re building that important home equity. Also, there are tax benefits to home ownership (which will be covered in another posting).

The Bottom Line - You may think you’re saving money by delaying the purchase of your next home. But there are many other ways in which waiting can costs you.

Ready to take the next step? Contact me to start the conversation.

Thinking of selling? Why Fall may be the new Spring.

Most homeowners who are planning to sell their homes think it is best to wait until the spring market to list their homes. In the past the conventional wisdom was that more buyers were looking in the spring months and so the odds of selling your home at your desired price are better.

If you have not noticed, things have changed. Here is why selling your home THIS fall, might be the wiser move.

1. SERIOUS BUYERS
People need to move at all times of the year. While yes, there may be fewer buyers in the fall market than in the spring market, there are more SERIOUS buyers looking in the fall than in any other time of the year.

2. INTEREST RATES ARE DOWN
Interest rates are still incredibly low & real estate loves low interest rates! Lower rates mean more purchasing power for buyers.

3. LESS INVENTORY
The best of all reasons for selling now is that fewer houses are listed in the fall months so buyers have fewer homes from which to choose. A smaller housing inventory means that odds of a buyer wanting YOUR home increase.

4. THE FRUSTRATION FACTOR.
Many buyers were overwhelmed with the competition and "frenzy" over the summer and simply stopped looking. With the market slowing these buyers are now back on the hunt and eager to buy before interest rates increase.