Cincinnati Real Estate

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Kathy S. Koops GRI

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Cincinnati Real Estate Dollars and Sense

filed under: Real Estate posted on July 29th, 2014

The 3 most common things heard by agents working with buyers and sellers with real estate needs in greater Cincinnati.  How’s the market?  We want to sell but are waiting until we can get more for our house.  And I’d like to buy but we’re waiting for a deal.  How would you rate your real estate dollars and sense?

While the answer to the 1st question is similar to shooting a moving target- each neighborhood has its own set of stats for sales and pricing, the response to the last 2 statements is simple and easy to understand if you considering about buying and selling now versus buying and selling sometime in the next 6-12 months.

Do it now!

Waiting for values to increase only makes sense for owners who owe more than their property is worth and don’t want to bring money to the closing table.  For the average buyer and seller waiting will, most likely, cost you a lot of money over time.  Consider what predictions for mortgage interest rates through the end of 2015.  (charts from Keeping Current Matters)

Freddie Mac Projected <ortgage Interest Rates

The increase in mortgage rates doesn’t seem like much but when you translate the amount into dollars and “sense” the extra dollars paid each month add up over time.

Keeping Current Matters "Payment Differences"

The expected rise in mortgage rates hits both buyers and sellers.  Sellers waiting for a higher sale price will also pay a higher purchase price as the market appreciates.  Buyers can expect to not only pay more but will also need to have more reserves for down payment.  Waiting to move makes sense if you expect to win the lottery, retire soon and move to another state (although buying the new place now may save you big dollars down the road) or your credit rating stops you from getting a mortgage for a couple years.

For the rest of the potential buyers and sellers waiting doesn’t make much sense when you look at the dollars lost with higher interest and down payments.

 

 

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