The Cost Of Waiting by Laura Herrera, Buyer Specialist

Should you buy a house now?I am frequently asked if now is the best time to buy real estate, each Buyer is unique and I ask them to consider these points when making their decision.

Everyone Wants a Lower Price, But What About the Impact of Interest Rates?
When shopping for a home, the natural tendency of any buyer is to want to pay the lowest price possible. It’s important to keep in mind, however, that the sales price is not the only factor that determines what the monthly payment will be. In fact, the impact of higher interest rates can easily nullify any benefit of waiting for a lower price.

Why Should I Rush to Buy?
While you may have heard discussions in the media about the decline of property values in many markets, the rate of decline appears to be stabilizing.

That being said, it would not be unreasonable for buyers to want to hold out for an additional decline of 10%, hoping to capture the best possible price. However, as property values have declined in many areas to 2003 levels or lower, waiting longer to pull the trigger could be a mistake. Many markets are reporting that lower property values have been bringing out investors and the result has been multiple offers on many properties. Properties priced correctly are not declining and, in fact, are creating a lot of interest.

Interest Rate Complacency
The problem is that many home buyers have been lulled into a sense of complacency because of extremely low interest rates. Since the Federal Reserve initiated its program of buying mortgage-backed securities, which control the rates people pay for their home loans, rates had been range bound, bouncing between 4.50% to 5.00% for a 30-year fixed-rate loan. We have seen a recent increase in rates, and rates are predicted to be heading higher.

Markets are Unforgiving
For anyone who was waiting for prices to drop even more, a 1.00% increase in interest rate would bring a higher monthly principal and interest payment on a home, even if the price of that same home had fallen an additional 10% in value.

While holding out for a lower price may help win the battle, you could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go higher from here.

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Laura Herrera
Buyer Specialist
The Joanne Curtin Team
Laura@CurtinTeam.com

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About joannecurtin

Joanne, Team Leader Who is Joanne Curtin? At first glance you might see her as just the owner of Joanne Curtin team, Inc. with husband and business partner, Tom. What you might not know about Joanne is that she has a masters degree in Education and is a lover of learning (and implementing) fresh ideas. Joanne isn’t content to be one of the Southeast's top real estate groups. Though her Curtin team real estate practice ranks in the top 1% companywide and she is in demand as a Keller Williams team leader, Joanne’s vision is to create and nurture a close community within our big city while educating others about building wealth through real estate. Leaping beyond the systems common in the tradition-bound world of real estate, Joanne’s strategy embraces tech savvy SEO, craigslist, iphones, ipads, blogs, interactive maps, video. Through adoption of technologies, an entrepreneurial spirit, commitment to service, and a desire to share the truth no matter what, her true joy comes from improving and enriching the real estate client experience. As an entrepreneur Joanne recognized the opportunity for Keller Williams Realty in Roswell and partnered with 3 other top producers to open the fastest profit sharing office in the Southeast. During the same time that Joanne was opening a new office, she was also investing in real estate. Joanne and Tom own and manage a real estate portfolio in North Atlanta and other Keller Williams market centers. When Joanne isn’t out selling or learning new real estate technology, she is modeling, teaching and consulting with others or learning new ways to wealth build. In her free time, Joanne is busy raising two young children, keeping healthy and giving back to the community. If you spend any time with her you will hear her say, “Thank God for my family and my paid social life.” Tom, Operating Partner Tom and Joanne own and operate the Curtin team together. Prior to real estate sales, Tom managed corporate marketing and sales for DirectTV's Southeast Region. Tom’s business degree, having graduated from the prestigous Honors Program from the University of Georgia, and previous positions focused on marketing and he applies that knowledge to the real estate business. Joanne and Tom are fortunate to have the opportunity to spend so much time together, both professionally and personally. Because of their mutual ambition, they work synergistically to market and sell residential homes, luxury homes and investment properties for their clients. In addition to owning and operating a real estate marketing and sales business, Tom and Joanne own and manage a real estate portfolio in North Atlanta. Joann
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