Why Waiting To Buy a Home Could Cost You

By Jacqueline Smith

Jacqueline Smith is dedicated to serving the vibrant Vancouver/Portland real estate market. Since stepping into the industry in 2014, I hit the ground running selling 52 homes in my first year and now have my hand in selling over 1700 properties.

No matter what market we’re in, there are always buyers who are hesitant, waiting for the “perfect” time to purchase their dream home. The two most common reasons I hear are:

● “I’m waiting for prices to drop.”

● “I’m waiting for interest rates to come down.”

It’s understandable to want the best deal possible. But waiting too long can come with a price tag, not just in missed opportunities, but in real dollars you may never get back.

Recently, David Hutley from Envoy Mortgage joined me to talk about the real cost of waiting to purchase a home.

What Is the “Cost of Waiting” in Real Estate?

When we talk about the cost of waiting, we’re really talking about opportunity cost. This means that if you have a chance to take advantage of an opportunity but delay taking action, you risk missing out on something valuable.

I often hear concerns rooted in past market crashes, like the one in 2008. Many people worry about overvalued homes or high interest rates, which causes them to hesitate.

I recently spoke with a client who had every reason to buy: good credit, savings, and steady income, but still hesitated. Fear of the past. While there are legitimate reasons to wait, it’s crucial to understand that fear shouldn’t be one of them.

Example of what “Opportunity Cost” Looks Like

Imagine you’re eyeing a $500,000 home. If you put down 10%, that’s $50,000, and let’s say the going interest rate is 6.7%.

If you wait one year and rates drop by 1% to 5.7%, that sounds like good news until you factor in home appreciation. At the average appreciation rate, that same home could be worth $530,000 next year.

Even with a lower interest rate, you’re now paying $30,000 more for the home. The net difference? About $33,000 lost, and it could take you up to 10 years to recoup that money.

With that kind of money on the line, is it really worth waiting?

How to Make the Smart Move

Real estate decisions should be based on facts, not fear. By looking at historical data, market trends, and your personal finances, you can make a calculated decision that benefits you now and in the future.

If you’re wondering whether now is the right time for you, we’d love to help you run the numbers. Dustin Hutley from Envoy Mortgage and I host monthly seminars at our Evergreen Boulevard office, covering:

● First-Time Homebuyer Classes

● Investor Workshops

● How to Sell & Buy at the Same Time

You’ll get the facts, not fear, so you can make an informed decision. If you want to learn more about our monthly seminars or if you have questions about real estate, schedule a consultation with me or one of our expert agents.

Reach out anytime at (360) 800-1334 or send an email to jacqueline@evergreenrealestatepartners.com. We’re here to help you make the smartest move for your future.

If you’re one of those people who are waiting on the sidelines waiting for rates to drop, it would help to learn more about the effects and opportunities when rates drop, check out our post: Clark County Homebuyers: Should You Buy Now or Wait for Lower Rates?

By Evergreen Real Estate Partners – Trusted real estate experts in Clark County and Southwest Washington