Friday, May 27, 2011

To Buy a House ... OR ... Wait???

Uncertainty as to whether home prices in the Lake Ray Hubbard area will continue to fall has to be one of the most common causes buyers procrastinate. Price isn't the only factor to consider, Mortgage Interest Rates have as much effect on housing costs as price. 

A small increase in mortgage interest rates can offset a significant drop in home prices. If the price of the home were to come down by 5% but the interest rates were to go up by .5%, the payments might be close to the same. Here's something to think about ... 

  • Let's say the price of $175,000 home went down 5%, making it $166,250, but the interest rate went from 4.75% to 5.25%. The payments would actually be $4.98 more at the cheaper home price.  
  •  If while you were waiting for the home to decrease 5% and the interest rate increased by 1%, the monthly payments would actually be $55.30 more per month
  •  Worse yet, especially in today's market, there is always the possiblility that the price of the home doesn't go down. However, the interest rates have steadily been increasing. If while waiting for the price to drop on this $175,000 house but it doesn't drop but the rates go up by 1%, the payments would be $104.58 more per month!
As a REALTOR in the Lake Ray Hubbard area, I can provide solid information that will help you make better buying decisions.  A home is an investment in your family and your future.  You owe it to yourself to check out the real numbers in your market because every market is different. Let me know how I can serve you or your referrals to better ... because NOW really is a GREAT time to BUY!

Wednesday, May 4, 2011

Sellers & Incentives to Buy

This is no doubt one of the Best Buyer Markets Ever! However, many sellers are not really doing much to encourage those wanting to buy to act now and buy their house.

According to the latest National Association of Realtors, "Home Buyers and Sellers Profile", 56% of sellers are not offering any incentives at all; only 25% offer a Home Warranty which is valuable but at an average cost of about $500, it probably doesn't do much to make the difference in the decision to buy or not. On the contrary, Builders selling newly built homes, offer a variety of incentives, like Upgrades, Seller-Paid Closing Costs, Interest Rate Buy Downs, Appliances or even Big Screen TVs.   

With the tougher mortgage conditions that exist today, buyers are looking for their best opportunity and will more likely than not, select the home with the most attractive incentives ... errrrr, Terms.

Whether selling or buying, today's complex real estate market requires a professional who can structure a transaction to benefit all parties involved and meet their needs. Let me know how I can serve you or your referrals to better understand the tax advantages, financing aleternatives & investent aspects of home ownership ... because NOW really is a GREAT time to BUY!