Wondering if now’s the time to buy? These pointers will help you decide.
With interest rates and home prices on the rise, many buyers are wondering if they should act now or wait for the market to cool down. Today I’ll discuss a few factors that demonstrate how you could benefit by acting sooner rather than later.
When interest rates were low, buyers flooded the market to snatch up the few available homes. As a result, some sellers were getting upwards of $100,000 over asking price for their properties. That boosted home values very quickly.
On the other hand, when interest rates are higher, competition is reduced, which means buyers have more negotiating power. Interest rates have increased significantly since the beginning of the year, and buyers can now negotiate the sales price by between 5% and 15%. We can also help you find the “weak link”—a seller so motivated they will drastically reduce their asking price to make the deal happen.
"By waiting for the market to come down, you could miss getting a great deal."
Also, keep in mind that over the last few years, hedge fund corporations and all sorts of big-name companies entered the market to scoop up properties. Those companies will be the first ones to sell off their inventories, which gives buyers an opportunity.
By waiting for the market to come down, you could miss getting a great deal. Remember that even if interest rates make your monthly payment higher, you can always refinance your loan once rates eventually drop back down. Similarly, prices don’t seem like they’ll be falling anytime soon, so by purchasing now, you’re ultimately saving money. Who knows when prices will decrease to a more affordable range?
If you’re thinking about buying a home and would like me to help you decide if now is the right time, give me a call or send me an email. I’d love to hear from you.
