In fast moving markets like this where everything seems to be selling with multiple offers and over the asking price, it can be tricky for Buyers to get on board.
If you have Buyers struggling with the market, concerned that they aren’t getting a good ‘deal’ on a house, it might be time to redefine what they mean by the term deal.
Traditionally buyers define a deal as paying either at, or ideally less for something than everyone else is. However in real estate right now most buyers are having to pay more than everyone else to win the bidding war.
But there is always more than one way to look at it.
In todays market, the ‘deal’ is the interest rate.
Buying a house isn’t as much about the price as it is the interest rate and the monthly payment. With todays rates you can pay more for a house than you would have 12 months ago and have a LOWER payment.
Here’s another mind blowing stat: in 1990 a $1,000,000 home would have included a mortgage of $8,872. At todays rate of 3.23% that same house would have a mortgage of $4,341.
A big part of our value as agents is helping clients understand the bigger picture relative to their goals. Understanding interest rates and how they affect purchasing power is one of the biggest pieces in the home buying process.
To your success!