Should I Buy today or should I wait ?
When it comes to buying or selling a house, that's a question I hear over and over. Unfortunately, it's a question I can't easily answer, partially because much of it requires the ability to predict the future. That has never been harder , there are some things to take into account when trying to make the decision. Look at interest rates. Right now, they're incredibly lowthe lowest I have ever seen in my life. They might go a bit lower, but chances are perhaps better that they'll go higher. For home buyers, the idea of "waiting" could be rewarded by a drop in home prices. But, unless you're loaded and looking to pay cash, the cost of borrowing money to buy a house is just as important as the purchase price.
If you're thinking about "waiting" consider the fact that a 1 percentage point increase in 30 year mortgage rates completely offsets saving 10 percent on the purchase price of the house. As a result, it doesn't take much of a change in mortgage rates to completely erase any benefit you "might" get from waiting for falling prices.
Another thing to consider is the cost of the house you're selling, as it relates to the cost of the house you're looking to buy. If you're looking to trade up, waiting to ride out declining home prices before you sell your current place isn't a good idea.
For example, if you have a $100,000 house, and prices fall 5 percent, you could lose $5,000 on the sale of that house. But, if you're trading up to an $200,000 house, the same drop of 5 percent will save you $10,000. So, at the end of the whole trip, you'll be $5,000 to the good. Be sure to discuss with me before both buying and selling. This will allow me to show you the financial implications of what you have in mind. I might come up with some thoughts that could change your whole strategy for buying or selling. Rea 1 percentage point increase in 30 year mortgage rates completely offsets saving 10 percent on the purchase price of the house member . Today you can more home in Muskegon for a payment than any time in the last 10 years or more.
I think now is the time to buy.
David Medendorp
www.sellmuskegon.com
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