Timing the Market

Don’t try to time the market.  Know when your timing is right!

In today’s changing market, you may wonder whether it’s still a good time to buy or sell a home. The truth of the matter is, there’s no one right answer to that question. The real question to ask is whether it’s the right time for you. Don’t make the mistake of trying to time the market.

If you’re buying a home, you need to determine the costs vs. the expected return, and then decide if that situation will likely improve if you wait.  At our currently low interest rates, the cost of carrying a home is now very affordable.  I can help you estimate what your expected mortgage, taxes, utilities and other carrying costs will be after your down payment.  If you’re a first time buyer, you may even find that your carrying costs are comparable to rent.  It’s important to remember that you can lock in your mortgage rate now, to keep your costs low, even when interest rates inevitably start to move higher.

In most cases, a simple calculation will tell you that you have a lot to lose by waiting.  If mortgage rates go up, the higher carrying costs and the lost equity could be significant if you decide to wait.  First time buyers must also consider the continued costs associated with your rental, while you’re waiting to save up for your downpayment.

If you already own a home and want to sell it to buy another, then you’ve got both ends of the transaction to consider.  Don’t lose sight of the fact that it’s the difference between the prices of the two properties that’s your primary concern.  You need to focus on whether you can afford the additional expense of the new property over that of your present home.  I can help you estimate the proceeds of the sale of your existing home,  provide helpful advice on how to keep your carrying costs low for your next home and get you in touch with a mortgage broker that can help you lock in a great mortgage rate before you buy.

So, if you think the time may be right for you and your family to make a move, just consider the high cost of waiting and give me a call.  Instead of trying to time the market, make an informed decision that’s right for you and your family.

This entry was posted in Buying and Selling.

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