How to get buyers off the fence in today's market

Outstanding job. Clearly presented and meaningful to todays consumer.  Most people will agree with all of your data, and the likelihood of rates rising very rapidly is real.  Thanks,

Dan

Jim - very nicely presented. I use the same type examples with my clients and refer to it as the price of procrastination. HIgher interest rates are inevitable with inflation due to government spending.  We don't know when it will happen, but generally rates go up faster incrementally when they're on the upswing.  Purchasing power is very high now.

Jim, great calculation -- how useful! Good tool! Thank you!

Hi Jim,

        Couldnt agree more. Some people always think they can see in the future, but if we could, we would all be rich and sitting on a beach somewhere tropical ( im in maine and its getting cold ).  Im often told by people who have boughten and sold property for many years, and one thing that always seems to be the case, is that when they buy a place, they always think it was too much money at the time, but 10 years later they are very happy they got off the fence when they did. I think a quote would be " at the time I thought it was too much money, but I took a chance."  today those same properties that were purchased for say, 100k, are now valued at 300k or more.

That speaks volumes!  What a great example...I'll use it tomorrow!

Verlyn

Thanks for the good information today.

Portsmouth NH

smart...very smart.  good post...thanks for the tip.

Best,

Rich

The rates will probably be higher in a year so its a good reminder. People are looking at 5% or even lower...hard to beat.

Now is the best time to buy in my mind. Good information. Thanks for the post.

Jim:

Good post.  Good logic.  Buyers should never turn a blind eye to the financing side of the equation.

I have been sharing this information with buyers.  For some strange reason, first time home buyers don't believe that interest rates will rise in the near future.

Great scenario and strategy...logically clever and brief.  Nothing like higher payments to snap someone out of the emotional roller coaster of trying to predict the market.  Thanks for sharing!

Hi Jim -- Great analogy.  The only problem I see is if the housing market deteriorates further, and the housing sector is needed to make the economy rebound, I'm not sure there would be much impetus for rates to rise given the lack of demand, but rates can be a mysterious thing.

Great scenario. That should deffinitaly take off the fence a serious buyres in today's market.

A 1% increase in interest rates equates to an 11.1% increase in sales price. I use the same argument myself.

I agree with Lenn first you need to have a SERIOUS buyer.  I like Mark's way of looking at it too.  Thanks to all

I've used a similar slide in all of my buyer presentations.  A picture is definitely worth a thousand words and you don't have to be a mathematical "genius" to explain it if the numbers have already been calculated.

Do we really have many serious people out there looking for homes or just testing the waters?  I think a little of both.