Are you still in the market to buy a home in California? How many offers did you write last year without success? Have you given up on buying your dream home?
With the rising interest rates and shortage of inventory some frustrated buyers have opted to stop their search. But there might be good reason to dust off you frustrations and move navigate the open houses again. The reason is that waiting could cost you $100,000 or more.
Here’s how postponing you purchase could impact you bottom line: waiting:
- Price: $270,000
- Rate: 4.41%
- Monthly Payment: $1,253.
Purchase Next Year:
- Price: $270,000
- Rate: 5.7%
- Monthly Payment: $1,567
That’s a difference of more than $313 very month which means you would be losing $1 dollar per day. Spending $300 per month extra might not sound that alarming, but the math gets uglier since assuming a 30 year mortgage, you would be spending $112,932 more to own the SAME home if you had bought it this year.
Ok, now that we have convinced you to return to the market to buy a home, how the hell will we find you a home? The short answer to that question is seller education which is an ongoing process for us since there is conflicting statistics that Sellers notice on a daily basis from major media sources.
For instance, CNN Money Magazine reported last week that “Home Sales are up 13%” while on the same exact day LA Times was reporting a “slow down of home price gains“! These conflicting headlines do nothing but to confuse seller about timing decision on their real estate transactions.
And that where our role as educators becomes significant where we can show the impact of selling today vs waiting for another year. After all, 63% of seller do buy a home in California the same year.
But it all starts with a conversation with a local reatlor.