Waiting can cost the buyer and the seller………….
Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. In most areas, prices are still below those of a few years ago. Also, interest rates are still below or near 4%.
However, sellers should realize that waiting to make the move while mortgage rates are projected to increase doesn’t make sense. It will cost you more AND harm the sale of your current home. As rates increase, the home you can afford to buy for the same payment will decrease. This affects you – and your potential buyers! Take your home – once upon a time that a buyer could afford it, all of a sudden it’s out of their reach. Here is a chart detailing this point:
At 3.75% rate you can buy $400,000 payment ~ $1852
At 4.0% rate you can buy $390,000 payment ~ $1862
At 4.25% rate you can buy $380,000 payment ~ $1869
A final note: Don’t miss out! Remember your buyer will miss out too!
For more information or for a free market analysis email firstname.lastname@example.org or call 712-541-5118.