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Don't wait too long to buy a house. It may cost you more than money.

Reblogger
Managing Real Estate Broker with Fathom Realty PB00068179

I've followed Mike for a while now.  I just noticed is disclaimer.  If you follow him have you ever noticed it?  Got to love his sense of humor, enjoy

Original content by Mike Cooper, Broker VA,WV 0225086119

Don't wait too long to buy a house. It may cost you more than money.

One of the most common questions Realtors deal with is related to "how much house" a buyer can afford. The first place to start when you want to buy a house, is the lender's office. A lender is a great resource in the home buying process because the lender can determine what buying power a home buyer is capable of. Then, with that information in hand, a buyer knows what price he/she should be shopping in. It would be terribly frustrating to shop for a $400000 house if a buyer's buying power is $232000.

Don't wait too long to buy a house: The cost of waiting.

There is second issue buyers should also consider when they start the process to buy a house. That is time and interest. Time and interest rates can work for you, or they can work against you. A buyer may start the process qualified to buy a $232000 house at 4.5%Don't wait too long to buy a house. You may find that you can't afford what you could before., but what happens if he lingers for 6 months and interest rates inch up over that time? Let's say rates climb to 6%. That $232000 house will now be out of his buying range. Now, he can only afford to buy a $196147 priced home, but his house payment will be the same as the $232000 house.

Don't wait too long to buy a house: Even small changes will hurt your purchase.

Even if the rate only went up 1% to 5.5%, the buyer's buying power slips to $207119. No one wants to rush into buying a house, but being too causal in home buying process may cost you. In this scenario, the buyer lost nearly $25000 in buying power. If it went to 6%, he lost $35853 in buying power. It's very likely that the $36K loss in buying power is not going to produce the house he envisioned when he started the search.

Don't wait too long to buy a house: Time really is money. Your money.

Time really is money when the market is showing increases in housing prices and interest rates. Every increment up means less buying power. A buyer needs to be focused on finding the right house within his/her price range within a reasonable time. If not, he/she might be settling for less house at the same monthly costs.

 

If you found this helpful, may also enjoy reading:

Buying a home? What is the process?

You can’t buy the first house you look at, can you?

 

This post was originally posted at www.winchestervarealestate.com:  Don't wait too long to buy a house. It may cost you more than money. #mikecoopersellshomes, #cornerstonehomesales, #winchesterhomesales, #yourlocalrealestatesalespros.

 

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2. Winchester, VA Real Estate Year in Review - 2016

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4. Winchester, VA - The best bedroom community for the Washington, D.C. area

5. Passion is contagious - Infect somebody!

6. Winchester, Virginia is a great place to buy a house at great discount!

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8. Turn setbacks into springboards

9. Reduce your mortgage by pre-paying principle and eliminating interest

10. What can I do to sell my home more quickly?

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Give me a call, or email me for all your real estate needs, and let's make something am
azing happen. 

mikecooper@cbginc.net, 888-722-6029

Cell: 540-336-5522

 

Real Estate Sales and Property Management         

 

 

(Disclaimer:  All grammatical mistakes, punctuation breakdowns and misspellings are purely for your amusement and entertainment.   Feel free to cackle.)                                                                                                

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Comments (13)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning James. Mike has got it right especially in our curent economic environment. Enjoy your day!

Jan 15, 2018 04:22 AM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Makes a lot of sense!!!

No one wants to rush into buying a house, but being too causal in home buying process may cost you. In this scenario, the buyer lost nearly $25000 in buying power. If it went to 6%, he lost $35853 in buying power. It's very likely that the $36K loss in buying power 

Jan 15, 2018 04:35 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning James Dray ,

I always enjoy reading Mike's post. I have never noticed his disclaimer but its awesome! Love it. Off to read and comment on his post as I missed it.

Jan 15, 2018 04:39 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the re-blog, James.  I have seen this very thing happen to quite a few folks in the past few years.

Jan 15, 2018 04:51 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much for sharing this excellent reblog selection.

Jan 15, 2018 06:22 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi James Dray - Mike Cooper explains the reality of waiting or not continuing to negotiate when you are very close to a deal. Thanks for reblogging this. 

Jan 15, 2018 07:06 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning again James. I follow Mike and he is thoughtful and wise.

Jan 15, 2018 07:33 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning James - Mike is spot on with this post.  It is very timely information.

Jan 15, 2018 09:10 AM
Corey Martin
Martin Presence Group - Ruston, LA
Real Estate and Management Solutions

So true. This is an excellent economic analysis of why time can most certainly be money. Thank you for re-blogging this.

Jan 15, 2018 03:28 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

James I have read on and off his post, must admit never noticed it until you pointed it out, very funny, Endre

Jan 15, 2018 09:08 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Great choice for a reblog James Dray and yes, I had noticed Mike Cooper fun disclaimer some time ago!

Jan 15, 2018 09:31 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I'm really glad that you reposted this as a reblog. I must have missed it in the today James Dray 

Jan 15, 2018 11:17 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Terrific reblog, James. I find many buyers when starting out, or thinking about buying, are not looking at or considering the financials. With our prices alone as they rise more and more buyers are seeing their buying power erode.

Jeff

Jan 16, 2018 08:18 PM