1,057,554
Fine, if you wanna wait, wait. But are you good where you are?
If you don't need it now, then hold.
If you do really want to move, consider this:
If you hesitate and rates go higher, you get less house for the money.
If you take action and rates go lower, refi.
NO assurances either way. Don't you love real estate?
It's gambling. Like life.
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Thomas J. Nelson, REAL...
La Jolla, CA
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Diana Dahlberg
Pleasant Prairie, WI
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Carla Freund
Raleigh, NC
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Alan May
Evanston, IL
-
ActiveRain Member Support
Seattle, WA
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Kat Palmiotti
Kalispell, MT
-
Dario Ferreira
Attleboro, MA
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Gary Frimann, CRS, GRI...
Gilroy, CA
-
John Juarez
Fremont, CA
-
Bruce Walter
West Lafayette, IN
-
Shayne Stone
Fulshear, TX
-
Jim Patton
Modesto, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Bob "RealMan" Timm
Minot, ND
1,506,973
The more they rise, the less affordable a home gets. If the rates continue to rise, you might not be able to afford as much of a house.
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Thomas J. Nelson, REAL...
La Jolla, CA
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Diana Dahlberg
Pleasant Prairie, WI
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Brenda Mayette
Glenville, NY
-
Dario Ferreira
Attleboro, MA
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Gary Frimann, CRS, GRI...
Gilroy, CA
-
John Juarez
Fremont, CA
-
Shayne Stone
Fulshear, TX
-
Jim Patton
Modesto, CA
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Nina Hollander, Broker
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
-
Candice A. Donofrio
Fort Mohave, AZ
-
Carol Williams
Wenatchee, WA
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Bob "RealMan" Timm
Minot, ND
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Kathleen Daniels, Prob...
San Jose, CA
2,684,769
Rates will continue to increase, going higher and higher.
Buy now, before they go up. When the rates drop again, you can refinance.
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Thomas J. Nelson, REAL...
La Jolla, CA
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Diana Dahlberg
Pleasant Prairie, WI
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Brenda Mayette
Glenville, NY
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Dario Ferreira
Attleboro, MA
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Gary Frimann, CRS, GRI...
Gilroy, CA
-
John Juarez
Fremont, CA
-
Shayne Stone
Fulshear, TX
-
Jim Patton
Modesto, CA
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Nina Hollander, Broker
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
-
Candice A. Donofrio
Fort Mohave, AZ
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Ray Henson
Elk Grove, CA
3,350,599
I explain the cycles. I may also share that when my husband and I purchased our first home our interest rate was 20%, which I now believe was the highest rate ever. When we divorced and I purchased my home the rate was 12.5%.
It is all about perspective. If we compare it to what was, we may feel we lost out.
The bigger focus here is ... can you afford the payment?
Do you want to "lose out" on what could have been as rates continue to increase?
Rates will come down. We don't know when. But when they do, you can refinance.
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Thomas J. Nelson, REAL...
La Jolla, CA
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Diana Dahlberg
Pleasant Prairie, WI
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Kat Palmiotti
Kalispell, MT
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Gary Frimann, CRS, GRI...
Gilroy, CA
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Julie A. Black
Kapaa, HI
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Bruce Walter
West Lafayette, IN
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Shayne Stone
Fulshear, TX
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Jim Patton
Modesto, CA
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Nina Hollander, Broker
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
-
Carol Williams
Wenatchee, WA
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Bob "RealMan" Timm
Minot, ND
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Kathleen Daniels, Prob...
San Jose, CA
5,116,903
Let's figure out what we need to do to get you into a home that meets your budget. It's not all about rates.
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Thomas J. Nelson, REAL...
La Jolla, CA
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Diana Dahlberg
Pleasant Prairie, WI
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Emily Medvec
Santa Fe, NM
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Kat Palmiotti
Kalispell, MT
-
Gary Frimann, CRS, GRI...
Gilroy, CA
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
John Juarez
Fremont, CA
-
Bruce Walter
West Lafayette, IN
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Bob "RealMan" Timm
Minot, ND
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Shayne Stone
Fulshear, TX
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Jim Patton
Modesto, CA
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Fred Griffin Florida R...
Tallahassee, FL
2,785,466
The demand for Real Estate is not going away YOU ARE! You can always refi down the line. Waiting in a market where inventory is low or scarce won't change just because you sit it out. As a long-term purchase, cannot go wrong
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Thomas J. Nelson, REAL...
La Jolla, CA
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Dana Hollish Hill
Bethesda, MD
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Richie Alan Naggar
Riverside, CA
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Gary Frimann, CRS, GRI...
Gilroy, CA
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
John Juarez
Fremont, CA
-
Shayne Stone
Fulshear, TX
-
Jim Patton
Modesto, CA
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
836,035
Rates for fixed are going up and the Fed plans to raise the rates 2 more times this year. Have you explored adjustable-rate mortgages yet?
.
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Thomas J. Nelson, REAL...
La Jolla, CA
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Emily Medvec
Santa Fe, NM
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Gary Frimann, CRS, GRI...
Gilroy, CA
-
John Juarez
Fremont, CA
-
Shayne Stone
Fulshear, TX
-
Jim Patton
Modesto, CA
-
Candice A. Donofrio
Fort Mohave, AZ
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Nina Hollander, Broker
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
-
Kathleen Daniels, Prob...
San Jose, CA
693,775
Rates are still below the historical averages and they may even go higher. Buyers haven't had this kind of supply to choose from in a long time and that may go away in the spring.
I would also admit that I am not convicted on any of the predictions and I would advise caution. The Fed has told us that they do want the employment numbers and housing prices to fall. I told my last buyer that a couple of months ago. This was the last house she planned to buy and it was perfect for her so I told her it probably didn't matter. She is probably down 7%, though in just a few months. I am thankful that I warned her where the market was probably going.
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Thomas J. Nelson, REAL...
La Jolla, CA
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Gary Frimann, CRS, GRI...
Gilroy, CA
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John Juarez
Fremont, CA
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Shayne Stone
Fulshear, TX
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Nina Hollander, Broker
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
-
Candice A. Donofrio
Fort Mohave, AZ
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Carol Williams
Wenatchee, WA
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
1,078,451
I'm going to ask more questions - are they renting? What's their rent? It depends on their circumstances and financial picture. Some folks may be better off waiting, others would benefit from buying. Some major metro markets are in fact losing value right now with inventory spiking - buying today at higher rates in a depreciating market VS a comfortable rent-free situation may not be a good move - for many others, buying is smarter. Would need to know more, I always avoid blanket advice.
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Kat Palmiotti
Kalispell, MT
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Gary Frimann, CRS, GRI...
Gilroy, CA
-
Pete Xavier
Pacific Palisades, CA
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John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
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Shayne Stone
Fulshear, TX
-
Nina Hollander, Broker
Charlotte, NC
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Brian L. Sirota, Esq.
Orange, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
2,403,064
When I purchased my first home the interest rates were double digit. It remained there for years and when it finially dropped to 6% I totally thought I was in heaven. Are you prepared to wait years or even decades for them to come back down as I did in the 70's and 80's?
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Thomas J. Nelson, REAL...
La Jolla, CA
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Gary Frimann, CRS, GRI...
Gilroy, CA
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John Juarez
Fremont, CA
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Bruce Walter
West Lafayette, IN
-
Shayne Stone
Fulshear, TX
-
Nina Hollander, Broker
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
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Carol Williams
Wenatchee, WA
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Kathleen Daniels, Prob...
San Jose, CA
3,168,134
With, "Okay, up to you when you buy"
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Thomas J. Nelson, REAL...
La Jolla, CA
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Gary Frimann, CRS, GRI...
Gilroy, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
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Kathleen Daniels, Prob...
San Jose, CA
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John Juarez
Fremont, CA
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Bob "RealMan" Timm
Minot, ND
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Shayne Stone
Fulshear, TX
195,522
How long do you plan to live in the house?
When rates go down, do you think sellers are going to raise their prices or lower them?
Do you think rates are more likely to go up or down?
You can't win by try to convince them to see it your way. Ask them questions and let them convince themselves.
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Thomas J. Nelson, REAL...
La Jolla, CA
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Gary Frimann, CRS, GRI...
Gilroy, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
-
John Juarez
Fremont, CA
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Bob "RealMan" Timm
Minot, ND
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Shayne Stone
Fulshear, TX
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Karen Climer
Orlando, FL
636,627
I customize charts like the one below for clients. Note the 2 highlighted areas on the right side of the chart. Despite all of the recent trends, we still have an inventory shortage, which is forecasted to drive home values higher. This particular chart displays San Diego (where I'm based), but this software can customize the numbers for any county in the USA. Suffice to say, it is a useful visual tool to help our clients understand the bigger picture as opposed to the 30 second soundbites they hear on the news.
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Thomas J. Nelson, REAL...
La Jolla, CA
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Gary Frimann, CRS, GRI...
Gilroy, CA
-
John Juarez
Fremont, CA
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Bob "RealMan" Timm
Minot, ND
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Shayne Stone
Fulshear, TX
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Nina Hollander, Broker
Charlotte, NC
4,967,177
Wait, you can get a adjustable rate. You can buy points.
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Gary Frimann, CRS, GRI...
Gilroy, CA
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John Juarez
Fremont, CA
-
Shayne Stone
Fulshear, TX
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Wanda Kubat-Nerdin - W...
St. George, UT
-
Candice A. Donofrio
Fort Mohave, AZ
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Bob "RealMan" Timm
Minot, ND
3,141,549
Buyers need to know exactly what they can purchase with the current rates, that is the first thing to determine and encourage a call to their lender. I would tell them that interest rates may continue to climb but they are able to re-fi later on when rates come down again.
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John Juarez
Fremont, CA
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Bob "RealMan" Timm
Minot, ND
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Shayne Stone
Fulshear, TX
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Kathleen Daniels, Prob...
San Jose, CA
1,554,949
Great Question 👍
They Have Recovery Bias
They see the market in a 1 year tunnel
...instead of a 30 year view.
I literally chuckle out loud and share my stories of buying my homes at 12.9%, 9% and 7% and I was grateful. I was happy!
I share that 8% is the 30 year average. "Is your rate lower?"
It's still historically low. Celebrate!
I politely let them feel silly for suggesting that our still historically low rates are wonderful and they allow you to buy what they do today.
Human nature always wants more.
No one wants to climb the ladder, they want the express elevator to the penthouse. I show them how beautiful the journey is because of what it makes of you along the way!
If you've been in this business or the market for less than 10 years, you're in a new experience - but not those of us with more than 10 years, we're Crash Veterans. We know that this market is normal one...finally!
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Alan May
Evanston, IL
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Bob "RealMan" Timm
Minot, ND
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Thomas J. Nelson, REAL...
La Jolla, CA
1,574,246
You can always refi a high interest rate loan. You can't renegotiate a good price or favorable buying conditions. prices tend to fluctuate upwards, not always, but most of the time. Plus, owning is usually better than renting over time.
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Bob "RealMan" Timm
Minot, ND
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The Villages Realty
San Jose, CA
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Gary Frimann, CRS, GRI...
Gilroy, CA
1,326,214
There are loan programs available that can reduce the impact of the current rates.
Don't wait for prices to rise which is what is likely to happen if rates go down.
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Bob "RealMan" Timm
Minot, ND
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Wanda Kubat-Nerdin - W...
St. George, UT
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Kathleen Daniels, Prob...
San Jose, CA
2,073,399
I don't try to talk people into buying homes. If/when they're ready, I am there to assist. But it's not my job to convince them that they need to buy now.
If they need to upsize, or downsize, one can always refinance if/when rates come back down.
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
341,300
A lot of my buyers are all cash, so not as much of a factor. For those financing, a lot qualify for the CRA loans that apply to many of the buildings in my area, which are at discounted rates to the market.
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William Piotrowski
Naperville, IL
6,425,063
Did the motivation to buy change, do you no longer need a home, or would you like to change they price of homes you are looking for?
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Bob "RealMan" Timm
Minot, ND
679,404
I would never push a buyer into buying ... however I would ask if I could share some thoughts of different strategies and see if I could generate a new found interest? It's not just about the rates! You have to start with your WHY?
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Bob "RealMan" Timm
Minot, ND
766,939
My response: "That makes sense. I'll continue to send you listings that match your needs. If you find something worth seeing we can take a look at it"
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Bob "RealMan" Timm
Minot, ND
459,182
I am answering with this " what are you going to do in the meantime" --- and the conversation now continues with options and choices. In other words, no answer until I learn more about what is "too high" and "waiting to buy"
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Bob "RealMan" Timm
Minot, ND
902,428
Sounds like the need or motivation to buy is not high. You can't convince someone like that, but may continue to show them what's available in their desired area and price range.
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Bob "RealMan" Timm
Minot, ND
907,609
It really depends on who is saying it. You cannot reason with some people. You can discuss:
- their motivation
- the fact rates could and probably will go higher
- they can refinance if/when rates go down
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Bob "RealMan" Timm
Minot, ND
921,504
"I understand. What do your Mom and Dad think about that?"
Reality is they did not buy when rates were at historic lows. Now they compare today's rates to rates to what will never be seen again.
Never seen again suggests a long, long, long wait.
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Bob "RealMan" Timm
Minot, ND
1,208,958
5,245,837
Now is the time to buy. If rates subside in the future, which I doubt, you can refinance. If you wait, it could be too late!
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Bob "RealMan" Timm
Minot, ND
1,093,547
I would need more information about the person's motivation and situation to intelligently respond. It's not a discussion to be done without considering all the factors.
One thing I can tell them is that there is a local lender who will refi for you at no charge if rates drop within two years after you close.
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Bob "RealMan" Timm
Minot, ND
1,250
Historically the rates are still low and a the best time to buy is Now, If you wait too long you can bet the rates will eventually climb.
Stop paying everyone else’s mortgage.
2,246,385
The longer you wait, the higher they go. What if rates are 8% and you wait for years to see them drop to 3% and they don't? House prices, inflation keeps right on going higher as the years fly by. Get the best rate you can at the time, refinance when you can, make at least one extra payment a year. Negotiate the best house price and STOP RENTING, START OWNING! Or keep helping your landlord put his kids through college with higher rent than house payments would be. The first question is "can you buy a house period and are you pre approved and for how much?" If rates continue to rise, your buying power is dwindling and you will have to settle for less house because you are "going to wait to buy".