The Cost of Waiting
In real estate, it’s common for buyers to say things like, “We’re going to wait until spring to buy,” or, “We want to wait a few months so we can save more money for our purchase,” or, “We’ll wait a few months and see what the market does.” While waitng to buy can be the right move for some buyers, waitng also has the potental to cost you tens of thousands of dollars. If you’re thinking of waitng, consider these facts before you decide.
- Less than one year ago, you could have bought a home in Rutherford County for over $20K below today’s value of $200K.
- Waitng just 30 days will cost you more than $5,000 on your purchase price, if local values contnue to rise at current rates.
- Waitng until spring will cost you almost $20K on your purchase price, if local values contnue to rise at current rates.
Unfortunately, in the current real estate environment, waitng can cost you much more than you realize. The rising value of the house is actually just one area of danger. With economists predictng rising interest rates over the next year, many potental home buyers fail to consider the impact of higher interest rates on their monthly payment. The worst part about waitng is how your lost equity and higher payment compounds month after month, potentally costng you tens of thousands of dollars over the tme you own your home. If you’re thinking of waitng until spring, consider these numbers.
- If current market trends continue and interest rates rise just half a point, waitng until June 2018 to buy will cost you nearly $20K in what you pay for the home, and more than $150 per month in higher monthly payments. If you stay in the home 10 years, a few months wait effectvely costs you almost $40K.