I understand that in reading this you are thinking that I’m a bit of a broken record on this topic, but I feel compelled to keep driving this point home as I find myself in conversations with folks every week…folks that want to move but feel they must wait until the market rebounds. It’s the classic scenario of homeowners that want to sell and buy another home, but can’t past how little they’ll get for their current house.
Again, I’m not addressing those who have a legitimate reason for not selling. Perhaps they know they will get less than what they owe on their current home; or perhaps they won’t get enough from the sale to put down on the next home.
I’m talking about those that are not in those situations and simply have a number in their minds they want for their homes to feel that selling and buying would be a wise decision. You’ve heard me say before that the market is relative. What that means is that, if the market is ‘down’ and you get less on your sale, remember, that you’ll also pay less on your purchase. If you wait for an ‘up’ market and get more on the sale of your current house, will you pay more on the next home purchase?...yes!
Here’s what I want you to focus on in that decision…interest rates. That should be one of, if not the, most important factor in deciding whether to sell and buy. In this market where prices are low, rates are the lowest they’ve ever been. So, if you’re financing your purchase, which over 95% of us do, you’re buying when prices are down and financing at an amazing rate. Many clients are finding that, because of the low rates, they’re able to move up into the house they want and their payments don’t change much from their current situation.
Also, what does it mean when you sell when rates are low. It means there are more buyers that will qualify to buy your house.
At least let me do the research for you and determine if your situation allows for the possibility and selling and buying at this time. I’d say that my hit ratio is 50/50, meaning 50% of the clients I do research for see it’s a wonderful time to move now. The other 50% find they’re in a situation where they don’t have the equity to sell and have enough to put towards the next house. You’ll never know unless you call me. Rates are so low that they are impossible to ignore.