In an appreciating market, like Denver, I often find folks who are just afraid to make a move, even though they can financially. Indecision is created by their fears, which are real and I do not want to take that away, yet some rationalizing might help see through that fog. See if some of these fears resonate with your thinking today:”We won’t find a place we like” (hasn’t happened in 31 years), “we cannot afford to make the move”, “the replacement home will just cost too much”, “what if the market goes down?”, “we do not have enough furniture to fill a house”.
“More has been lost due to indecision than was ever lost to making the wrong decision.” Interest rates have as much effect on housing costs as price and when they are both trending upward, it can be very expensive to wait.
There can be some legitimate reasons for postponing a purchase such as needing to save the down payment, improve your credit or waiting to find out about a possible transfer. The problem is that prices and interest rates could, and very likely will, go up in the future.
If the price of $250,000 home went up 5% and the interest rate went from 4.5% to 5.25%, the payments would increase by $176.42. The additional cost over a seven-year period would be close to $15,000.
The questions that indecisive buyers need to ask themselves is “how am I going to feel knowing that if I had not waited, I could have been living in the home for less money?” and “What would I have spent the money on if I didn’t have to make the larger payment?”
Use the Cost of Waiting to Buy calculator to find out how much indecision may be costing you.
If you want to know the selling process go to http://www.denverrelocation.com/selling.shtml. Then call me to schedule a time to talk. 303-880-5585 ext 3.