As the market continues to improve, and we see prices on new and resale homes steadily going up, with interest rates joining the party, the question is, will the waiting for a higher price, cost YOU, a higher price?
Example:
Someone who purchased a 3 bedroom 2 bath home for $150,000 ten years ago, could be seeing their neighborhood now selling for $180,000. After 10 years’ time, they have outgrown their home, or have found that they have different needs now from what they originally wanted in a home.
The homeowner, seeing their neighborhood increase in price, decides to wait until the market reaches $200,000 in their neighborhood before they sell, giving them more of a profit so that they can purchase more home later.
But is that really the case?
If this home owner is looking to build new construction, or buy a bigger home, they will most likely see an increase in pricing in that home. In some cases, the home that they wish to purchase may outpace their existing homes value that they live in now, thus costing them more to move up.
Sprinkle that with the possibility of higher interest rates, and instead of buying more home for less, they actually end up paying more because the market has readjusted itself due to the law of supply and demand.
So, before you decide to hold off, talk to your REALTOR, and see what’s best for you. Our advice is always free, and the savings could be in the thousands!
Call us today 928-919-0108
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