As the local real estate market slowly recovers, prospective buyers and sellers should consider the consequences of timing their real estate decisions. One lesson I have learned repeatedly during the last few market cycles is that the 3 most important factors in real estate are Timing, Timing, Timing. And, unfortunately, many learn this lesson the hard way: as they’re looking in the rear view mirror and saying “I wish I would have….”
Buyers
For prospective home buyers, the cost of waiting can be significant in a market recovery. There are 2 factors that converge to dramatically affect the expense of home ownership: escalating prices, and increasing interest rates. The infographic below (courtesy of www.keepingcurrentmatters.com) illustrates the impact of the combination of a 1% interest rate increase coupled with a 5% appreciation in price on a monthly payment – an 18% difference in cost!
Sellers
For sellers, the timing decision can be a bit more complicated. It really depends largely on your overall moving plans. If you are selling your current home in order to purchase a new home, then you must balance the cost of purchase (illustrated in the infogrpahic) against any losses on selling now rather than later.
At Liz Moore & Associates, our agents pride themselves on helping our clients make wise real estate decisions. And, we would be happy to sit down with you for a complimentary consultation, to help you evaluate your options in the current market, and if it makes more sense for you to move now or later.
Email us at concierge@lizmoore.com, or click below, and we can prepare a complimentary analysis of market value for you – you just may be pleasantly surprised.
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