The Difference Between A Home's Cost vs. Price

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Real Estate Agent with Realty Executives Boston West 113011
 
 

The Difference Between A Home’s Cost vs. Price

The Difference Between A Home’s Cost vs. Price | Simplifying The Market

As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home.

Let us explain.

There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

What will happen in 2015?

A nationwide panel of over one hundred economists, real estate experts and investment & market strategists project that home values will appreciate by almost 4% by the end of 2015.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30-year fixed mortgage rate will appreciate to 4.5% by the end of 2015.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

Cost of Waiting | Simplifying The Market

It will be interesting to see what this year holds for buyers and the prices plus interest rates.  You never know until you look back.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Michael Mahoney 02/06/2015 05:49 AM
Topic:
Home Buying
Location:
Massachusetts Norfolk County Needham Needham Heights
Groups:
ABR-Accredited Buyer Representatives
Posts to Localism
Local Expert
Luxury Home Agents

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Rainmaker
2,546,326
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This makes the point in a way that everyone can get the point...on their own too

Feb 06, 2015 12:01 AM #1
Rainmaker
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Pat Laracy Baker
Realty Executives Boston West - Holliston, MA
Pat Baker Dream Home Maker

Hi Richie

Thank you for your commet.  Hope you are having a great 2015 so far.  We have lots of snow and cold weather here but I think the listings are coming on anyway.  That listings started coming today so in spite of 50 inches of snow everyone is starting to say let's do it anyway.

Feb 06, 2015 01:09 AM #2
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Rainmaker
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Pat Laracy Baker

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