2. Interest rates are way below normal, a 1% spike in rates is 7 1/2 times greater than a 1% drop in the price of a home. A 3% bump in rates ( which would be back in the normal range prior to last 5 years) on a $100,000 loan is almost $24,000 in higher payments over a 10 year period. House payments are made with hard dollars (after tax). Yes, interest is still deductible, but that is misleading, you already receive a personal deduction without interest. And you still must write a check in after tax dollars for the increased house payment.
I have watched many waves in interest rates over the years and what goes down must go up. They rise just as fast if not faster than they fall. When they start to rise there has always been an increase of volume because the fence setters start jumping in, more buyers chasing the same number of properties makes prices go up, not down.
Millie C Lumpkin, SFR
Century 21 Pro-Team
Phone: (708) 213-6141
I'd buy that car, I like it, but I don"t like to drive. Never heard that. I like that house, I need a house like that, but it is too high. Answer: what price should it be then? You know the rest.
You may be right, no one has that crystal ball. But you may be wrong.
Irregardless, we should look to see if that right home is on the market, and how great a deal we can get.
You never know how far a seller is willing to go until you try, and if we can get the right deal, we can take the next six months appreciation or depreciation out of the picture!
Good luck and Happy selling!
"Deals come along every day...Some are FOUND and some are MADE.
My clients choose me in part because of my track record with both finding deals and making deals. If a buyer's Realtor can't recognize a great deal or negotiate for a great deal, then the market isn't your issue, they just need a Realtor they can trust to get the job done.
Another fence-pusher is getting across that if they wait for the price to be lowered, then they increase the odds for a bidding war that ultimately drives the price back up (or they lose the house). A buyer is better off making the offer they want to make BEFORE the price drop. Mentally, Sellers are already preparing to lower their price and are feeling desperate. That feeling immediately goes away when they lower the price on the market because of their new-found hope. This is first and foremost a mental game of chess. You just have to play the game!
Good Luck...People are still selling and buying...Everyday.
Mark Atteberry, SG Priest Realtors
Personal Service, Expert Results
Serving Maryland, D.C. and Northern Virginia