“I want to wait for prices to drop more” Orlando real Estate
If Buyers are saying that then Let them know that waiting may well make their home MORE expensive not less! How is that possible if the price drops? Unless the Buyer really does pay all cash even a small increase in intrest rates can wind up wiping out most if not all of saving from the price decrease because of the increased interest costs. And as article below indicates – interest rates are very likely to be going UP.
Here is a simplified example: On a $220,000 house if the price goes DOWN by $10,000 but interest rates go UP by only 3/4%, then the Buyers will pay $8,600 MORE in interest during the first 10 years and $17,200 MORE during the first 20 years. Pull out your financial calculator and check it out! Oh – the monthly payments are nearly $400 MORE per year too!
[Price NOW $220,000 - With a $20,000 down payment and $200,000 30yr fixed at 6% - will result in $111,263.58 of interest during 1st 10 years.
Price drops by $10,000 to $210,000 and intrest rates increase by only 3/4% - With $20,000 down payment and $190,000 30 yr fixed at 6.75% - will result in $119,952.26 of interest during 1st 10 years.]
So to paraphrase an old saying – A Buyer who hesitates may suffer a big loss!
