Why Waiting Is More Expensive Than Buying Right Now

         

At this time of year, a lot of sellers will say something like this:

"Hey Jim, I think I'm just going to wait because I will probably get more from my house later anyway. So I'm just going to wait until spring or summer and see what happens then."

How do we address that comment or that concern?

I'm going to give you one script that's worked for me over the years. And it works by talking about the fact that when we're staying and rebuying in the same market, waiting doesn't make a lot of sense.

So let's put this in practice. You might say,

"Hey, I hear what you're saying, but here's something to consider, right? If you're buying or selling in the same market -- because the entire market's going up in value at the same time -- waiting to sell your home to buy another home just means the other home you're buying is also going up in value at the same time.

In fact, there's a little bit of a Delta that if you're buying a higher priced home, it might be more expensive the longer you wait. But there's something else that you should consider that's even more important than pricing. And a lot of people forget about this. And that's the cost of your mortgage.

And when that comes up, the cost is really represented by interest rates. Now, right now we're hovering right around 3% fluctuating a little bit. But the MBA (the Mortgage Bankers Association) predicts that by the end of 2022, it's going to be closer to 4%.

So a full percentage point increase. By waiting, what you're going to do is you're going to be just kind of staying in tandem with all the other properties that are going up in value trading dollars in other words, but what you could miss out on is that interest rate change. And that interest rate change has way more impact on how much you're going to spend a lifetime value of that property than anything else.

So maybe we should take a look at that. I can have my lender do a little spreadsheet for you to show how much it will cost for you to wait versus buying now. Would you be interested in that?"

Get people in conversation thinking about the real world impacts of what their decisions can mean to them and their pocketbooks, because everybody's concerned about inflation right now.

This is something to talk about and they're going to know that waiting is going to be more expensive than buying right now.

Hope that helps you guys go out there and crush it in the marketplace.

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