When Should Buyers Buy?

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When’s the best time to jump into a buyer’s market? How long should you actually wait before you sign on the dotted line? In some areas where the prices are still declining, how can you make the decision if you don’t know how much lower the prices will go? There are a couple of variables that can help you make your move.

Some Home Buyers Should Buy Immediately
Your situation should dictate your decision:
If you are a seller who wants to move up to a more expensive home in a down market, now could be the best time. The longer you wait to sell, the lower the price of your home could fall.
If you can arrange for a temporary place to live, a smart strategy is sell now, wait a few months, buy your new home.

The Impact of Interest Rates
As interest rates increase, waiting to buy can cost you and you might not be able to afford to buy a home at any price:
Each 1/2 point increase in your interest rate gives you $25,000 less in purchasing power.
Each 1 point increase in your interest rate gives you $50,000 less in purchasing power.
Each 2 point increase in your interest rate gives you $100,000 less in purchasing power.

Purchase Prices versus Interest Rates
If you put down 20% and qualify for an 80% loan, here are your principal and interest payments on the following purchase prices:
$425,000 sales price, at 8.25% interest, your payment is $2,554.
$450,000 sales price, at 7.75% interest, your payment is $2,579.
$475,000 sales price, at 7.25% interest, your payment is $2,592.
$500,000 sales price, at 6.75% interest, your payment is $2,594.
$525,000 sales price, at 6.25% interest, your payment is $2,586.

The payments are almost identical. However, the home you can afford to buy a 8.25% is $100,000 less than the home you can afford to buy at 6.25%. If you wait for prices to further decline, the perceived value could be lost due to higher rates.

Your best strategy is to weigh all the pros and cons first. Don’t let newspaper headlines dictate your decision!

Interest Rates from Brian

(This great graphic is courtesy of Brian P. Forrester of VanDyk Mortgage Corporation).

Trinity Real Estate – Going Green

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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Air Conditioning Repairs in Trinity

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Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

QR Codes and Florida Realtors

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Crawford QR Code

Not since the cell phone revolutionized the real estate industry has an innovation had such impact. 

The QR (Quick Response) technology code will streamline the marketing of your real estate listing by giving buyers what they need at the snap of an app! 

What is essentially a barcode (like the types used on grocery items and in retail stores) is actually a portal to information. 

The QR code can be printed on just about anything and can be read with the use of a QR scanner application that is added to a cell phone with a camera or a smart phone.  The code itself is essentially a hard link that can direct home buyers to the place we want to send them. 

All the home seeker has to do is point and click their phone at the QR code and they’ll be “transported” to a virtual location.   

For example, we can print a real estate flyer with a QR code that a potential buyer can scan and get routed directly to your home’s virtual tour. The QR code could even contain a link to my website so they can easily read additional information about your listing beyond what can be presented on a box flyer. The power that this technology puts in the hands of the consumer is just extraordinary. 

Coldwell Banker is the first local real estate brokerage to use QR codes to link mobile devices with the real estate cyber world. When you click to connect, potential buyers will get what they need when they need it. And since we’re talking about real estate, timing is everything!

Call me if you have any questions about this or any opportunities in this market!