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Can You Get Me the Best Price Available For My Home?
There’s cost vs. price and you have to be able to look at the overall picture. Maybe the time to buy a home is in a difficult market. You shouldn’t be worried about price; you should be worried about cost. Cost is determined by price and interest rates. If the price falls but the interest rates go up, then cost may be greater. The price may sound good, but interest rates impact the cost in different ways. Even if prices fall, they would have to fall 10% to make up for just a 1% increase in interest rates to get the same mortgage payment.
At times, people are afraid to buy and may think they’re doing the right thing by renting. Let’s take a look at the Westchester rent vs. buy situation. According to the Consumer Price Index, prices for rent of a primary residence in the Westchester area have increased at an average rate of a little more than 3% per year for the last ten years. Experts are projecting rents to increase by 5% annually over the next few years. If you buy a home with a 30 year fixed mortgage and you don’t refinance, you know what your payments will be for the next 30 years. There are no surprises. And, at least for now, homeowners enjoy significant tax savings if they are paying mortgage interest.
The reason people buy homes is the same generation after generation. It’s what Americans do. They want the best education for their children, the safety, the sense of community, and all the other benefits surrounding home ownership. They don’t need the studies and statistics, but you need them so you can prove to people that their gut feelings are already good and that they should consider homeownership if not now, in the future when it’s the right choice and possible for them.
People have fear when it comes to buying. This fear comes from not understanding and it can cause paralysis. It’s up to us as Realtors to make sure they understand these concepts. We are the guardians of the American dream. Make sure everyone who wants to achieve this dream has a clear path and you have the lantern to light that path with knowledge.