The Cost of Waiting...

By
Real Estate Agent with Keller Williams Realty - Topsfield, MA 92593-B

I've burned myself several times in life by procrastination or thinking I was smarter than I actually am. In Real Estate, the market changes day by day. Waiting could cost you plenty of dollars OR you just might luck out. When Pam & I bought our house in 1985 the interest rates were at 13% and rising, as were prices, BUT, we knew the market and knew that rates would not remain high even though the rates went to 18% before correcting. On that one occasion, we did not hesitate/wait...We Bought!

My advice is Do Not Wait. My motto is "It's what stays in Hip National Bank (HNB) that counts" HNB translates to...Your Pocket!

You can always adjust to changing market conditions. Here's an Infographic/chart from the folks at KCM.

 

What Is The Cost Of Waiting Until Next Year To Buy? 

What is the Cost of Waiting Until Next Year to Buy? [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • The “cost of waiting to buy” is defined as the additional funds necessary to buy a home if prices & interest rates were to increase over a period of time.
  • Freddie Mac forecasts interest rates to rise to 4.5% by the Q4 2020.
  • CoreLogic predicts home prices to appreciate by 4.8% over the next 12 months.
  • If you are ready and willing to buy your dream home, find out if you are able to!
Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

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Topic:
Home Buying
Location:
Massachusetts Essex County
Groups:
FOR SALE BY OWNER - MARKETING(FSBO)
Boston Real Estate
New Hampshire - Real Estate and Life in The Granite State!
MA REALTORS
Boston Area Real Estate
Tags:
buying
interest rates
mortgages
prices

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Rainmaker
2,139,809
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Doug - that is one smart decision.  I can recall taking a chance of the second home we bought with an adjustable that what bought down by the builder.  At the time of re adjustment it was lower.

Jun 16, 2019 06:25 AM #8
Rainmaker
1,369,738
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Doug Dawes - You make a lot of great points for the mortgage market, and I agree.

Sedona is generally a second home market and many of my clients pay cash.  Most will either retire soon or rent the home out if they are not using it. 

Jun 16, 2019 07:20 AM #9
Rainmaker
3,623,064
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Doug - procrastination can visit from time to time but it's best when it isn't a constant companion.  In any sense of the word.  

Jun 16, 2019 09:55 AM #10
Rainmaker
856,054
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Grant Schneider 

Being educated about the market is a big factor in decision making

Jun 16, 2019 07:39 PM #11
Rainmaker
856,054
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Sheri Sperry - MCNE® 

I really wasn't aware Sedona was a second home market, I know it was a good vacation destination

Jun 16, 2019 07:41 PM #12
Rainmaker
856,054
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I am onboard with your comments 100% Michael Jacobs 

Jun 16, 2019 07:41 PM #13
Rainmaker
1,559,494
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

If someone wants to buy a house, and can do it now, they should go ahead and purchase. Waiting could be costly.

Jun 17, 2019 02:45 AM #14
Rainmaker
3,923,747
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Doug Dawes,

I was glad Kathy Streib featured your post in her "Ah-ha" moments for the week as I missed it. Love the infographic and excellent advice!

Jun 17, 2019 05:43 AM #15
Rainmaker
3,358,825
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Congrats on the feature by Kathy this week!  Terrific post!

Jun 17, 2019 07:07 AM #16
Rainmaker
1,602,615
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I love this kind of comparison. Every agent should be showing that infographic to potential buyers.

I do remember back in the late 80's - or was it early 90's? when rates were bouncing up and down daily, and even hourly. People getting loans were on pins, trying to decide when to lock their rates.

Jun 17, 2019 08:05 AM #17
Rainmaker
915,455
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Interesting forecast with the interest rates dropping. It is very hard to predict right now with all the trade tarrifs and how they are affecting the markets. We will see, but it is always good to own your home and have the abilitiy to do what you want.

Jun 17, 2019 08:15 AM #18
Rainmaker
1,268,229
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

EXCELLENT message, Doug Dawes.  I can tell you from 40+ years of experience, most people can't/wont' save for a larger downpayment (or pay off debt) as fast as the home prices, equity values, or interest rates will rise.   As Nick Vandekar, 610-203-4543 points out, the lower/falling interest rates being seen right now could prove to be advantageous for those buyers on the cusp especially ... why not check out the possibilities and the options you have?

Gene

Jun 17, 2019 09:28 AM #19
Rainmaker
2,178,102
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Doug Dawes - My first home was a VA loan at 10 1/2% on the last day of July 1979. We felt so lucky we didn't wait and didn't blink an eye when it came to paying the mortgage on time. Getting approved for a Government Loan any time is a privilege and an honor. All vets deserve it. 

I like your post very much and all the comments too!

Jun 22, 2019 10:35 AM #20
Rainmaker
856,054
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Kat Palmiotti 

Most times when people wait they are trying to market time, imho. If you are ready, willing and able you should jump in.

Jun 23, 2019 05:03 AM #21
Rainmaker
856,054
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I was pleasantly surprised and grateful Kathy Streib did that.

Jun 23, 2019 05:04 AM #22
Rainmaker
856,054
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Thank you, Kristin Johnston - REALTOR® 

It is always humbling when one of your peers thinks the post is worthy of mention

Jun 23, 2019 05:06 AM #23
Rainmaker
856,054
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Oh, Marte Cliff  , I remember those days as well, since that is when Pam & I were purchasing our home

Jun 23, 2019 05:07 AM #24
Rainmaker
856,054
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I have always looked at Real Estate as a good purchase no matter the things happening in other markets Nick Vandekar, 610-203-4543 

Jun 23, 2019 05:08 AM #25
Rainmaker
856,054
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

People are people Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

One day interest rates will be higher and it will still be a good time to own Real Estate

Jun 23, 2019 05:11 AM #26
Rainmaker
856,054
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

VA Loans are advantageous in my opinion Patricia Feager, MBA, CRS, GRI,MRP Glad to learn you had a good experience

Jun 23, 2019 05:12 AM #27
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