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Why Waiting For The Bottom Could Cost You This Year!

By Jimmy Gilley

Real Estate Agent with Gold Star Realty

March 10, 2011 02:08 AM

Why waiting for the bottom could cost you this year!

One thing I constantly hear in the Niles Mi Real Estate market is that people are waiting for the "bottom" of the market. "I'm trying to time the market to get the most bang for my buck", "I want to get a house for the least amount of money". I know you have heard something similar to this, or have said something like this yourself.

I am here to get you out of this train of thinking as it will actually cost you MORE to wait for "the bottom of the market". First of all what makes you think that we are not at the bottom of the market? What indicates to you that prices are going to lower? Waiting could not only cost you extra money, but it can also cost you the home of your dreams.

Over the next year we are likely to see the interest rates climb a full point. MBA, NAR, and PMI all estimate the interest rate will hit 5.5 by the end of the year. What does that mean for you? Let me lay this out for you as simply as I can. If homes prices were to drop another 10%, but the interest rate go up 1% you will have the same monthly payment.

The chart above shows you how waiting can cost your dearly. Even though you get the home at a substantial price drop. The market is constantly moving and changing, so don't leave your future to chance, and get that dream house at the already low prices, AND low interest rates before the market starts to climb.

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Jeremy Lambert

Your Castle Real Estate - Denver, CO

Great Read! Thanks!

Mar 10, 2011 02:09 AM

Karen Fiddler, Broker/Owner

Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA

Orange County & Lake Arrowhead, CA (949)510-2395

Hi....great post, and I hit the suggest button. I think you presented a very clear, easy to understand position. And while they wait that year, they also lose all those wonderful tax breaks on their taxes, which will cost them in the long run also.

Mar 10, 2011 02:12 AM

Jimmy Gilley

Gold Star Realty - Niles, MI

(269) 362-4841 - Search Niles MI Home For Sale

Karen - Thank you for suggesting I appriciate it! I agree one hundred percent. Also just found an article that states my main point.

"The third decline in home prices is spurring sales as bargain hunters rush to buy before rates rise"

Mar 10, 2011 02:22 AM

Castle Real Estate- Thank you for commenting!

Mar 10, 2011 02:23 AM

Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366

Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA

General Contractor, Dry Rot and Water Damage

Love this post! There are so many different variable, we spend to much time looking only at the price of homes. Thanks for the share.

Mar 10, 2011 02:34 AM

Alan Gross

PrimeLending, A PlainsCapital Company, Equal Housing Lender - Bethesda, MD

Loan Consultant

It's a good message that needs to get out. As it has been for many years, for most people it's about the payment.

Mar 10, 2011 02:54 AM

Tom - Agree. Not only do you have to look at price, but also have to look at the cost!

Mar 10, 2011 03:36 AM

Alan - I hear what you are saying. If you tell someone what the payment is, then they can determine what they can afford much easier. Suggest for feature to help get the message out! Thanks for the comment.

Mar 10, 2011 03:37 AM

Bob Jakowinicz

National Realty Centers Livonia--Bob Jakowinicz - Livonia, MI

Michigan Real Estate Agent-- MI Real Adventures

Jimmy hit the button for ya, Nice post. We will not see the markets go down forever. The only way to know when we hit bottom is once we are moving up again.

Mar 10, 2011 04:16 AM

Bob - so very true! That is what I also tell my buyers.

Mar 10, 2011 04:44 AM

Patricia Kennedy

RLAH@properties - Washington, DC

Home in the Capital

Jimmy, this is just about the clearest explanation of the price vs. cost issue that I've ever seen!

Mar 11, 2011 01:26 AM

Patricia - Thank you for your kind comment. I am glad everyone is enjoying the post. I know quite a few have suggested it, so hopefully it makes the big board :-) would be my first.

Mar 11, 2011 01:38 AM

Craig Snead

Quality Home Investments, LLC / Dearborn Heights, MI - Dearborn Heights, MI

Real Estate Investor

Jimmy, shout it from the roof top so more buyers can hear you. I remember having a mortgage rate of 10%. These are the lowest rates we have seen in YEARS. People need to take advantage of that as well as the flood of low priced homes available on the market. Suggested.

Mar 12, 2011 02:18 AM

Craig - Thank you so much for the suggestion! I do appriciate it. Getting this article on the front page then we can certainly let more people know about it. We have to be equiped to show our clients what they need to do.

Mar 12, 2011 03:41 AM

Pam Sitterly

RE/MAX VINTAGE - Magnolia, TX

CRS Magnolia-Tomball Texas

Your post is well-said. thanks for sharing. It's the best time to buy in years!

Mar 13, 2011 04:31 AM

Pam - Yes, this is the best time to buy! Thanks for commenting!

Mar 13, 2011 09:02 AM

Billi Evans

Murney Associates - Springfield, MO

What a good post. Great graphics and easy to understand. Thanks!

Mar 31, 2011 06:34 AM

Billi - Thanks for the kind comment! Yes it is a very nice representation of what the market is like.

Apr 07, 2011 04:17 AM

Why Waiting For The Bottom Could Cost You This Year!

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