Home > Blogs > Suzanne Gallegos > All Things SLC (Salt Lake City)

You Snooze You Lose - What your clients may be losing by waiting!

By Suzanne Gallegos

Real Estate Agent with Equity Real Estate - Advantage

December 03, 2008 01:45 PM

I'm sure you've noticed that interest rates have come down.....again! They are the lowest they've been in years. And housing prices are near what they were in 2003 in my particular area! Do you have clients that are fence sitting....waiting for the perfect time to buy? Yeah, most of us do. You may want to make them aware of some very interesting numbers. Point out to them the difference in owning a $320,000 vs. a $240,000 home for the exact same payment amount! Do you think that might make them sit up and take notice?

Loan Amount Rate Payment Payment Rate Home Price

$320,000.00 @ 5.25% = $1,766.00 $1,766.00 @ 5.25% = $320,000.00

$320,000.00 @ 6.00% = $1,918.00 $1,766.00 @ 6.00% = $294,700.00

$320,000.00 @ 6.50% = $2,022.00 $1,766.00 @ 6.50% = $279,540.00

$320,000.00 @ 7.00% = $2,128.00 $1,766.00 @ 7.00% = $265,566.00

$320,000.00 @ 7.50% = $2,237.00 $1,766.00 @ 7.50% = $252,680.00

$320,000.00 @ 8.00% = $2,348.00 $1,766.00 @ 8.00% = $240,775.00

FACT: Rates are Phenomenal - now!

FACT: Home Prices are Lower and Fantastic!

FACT: We are in the PERFECT STORM!

Home prices and interest rates are subject to change and both most likely will go up.

Payment will go up substantially for the exact same home!

Food for thought!

Happy selling!

Re-Blog

Comments(4)

Comment

Show All Comments

Sort:

Joan Whitebook

BHG The Masiello Group - Nashua, NH

Consumer Focused Real Estate Services

I hope that more buyers will get off the fence. Many are now worried about their jobs, not the interest rates! One problem solved, another arises. CNN pundants say many more layoffs will be coming!

Dec 03, 2008 01:48 PM

Valerie Springer

Benchmark Mortgage nmls 2143 - Birmingham, AL

Home Loan Officer AL, FHA, VA, Conventional and Re

Suzanne: You are right on the money! Get those folks off the fence and into a new home. Later they will get less home for the same payment. I see some sunshine in our future! Great post, thanks for sharing.

Dec 03, 2008 02:03 PM

Mike Griffin

Coldwell Banker - Bellaire, MI

I love math that works and your examples work. Thanks for the thought!

Dec 03, 2008 02:23 PM

Richard D. Ferris

AmcAppraisalsinc.com - Clermont, FL

Florida State Certified (FHA) Appraiser

This is so true! Buyers who can qualify for financing really should be jumping all over prices! Clearly some areas are still declining - so the fear that more value could be lost is there.

In my market, however, prices have fallen back to 2004 levels. So anyone buying now gets to go back 5 years for prices! I WISH I had bought my home 5 years ago instead of 4 years ago. I lost some value - but I am not selling and I'll wait out the market corrections.

Home prices here in Central Florida though, which were once $220,000 are now $185,000 (+/-) - it makes me wish I had some liquid funds to invest into real estate right now!

Jan 14, 2009 03:00 AM

You Snooze You Lose - What your clients may be losing by waiting!

Comments(4)

Suzanne Gallegos

Real Estate Resources

Recent Posts

Additional Information