Forbes: Buy Now or Pay More Later?

Forbes: Buy Now or Pay More Later?.

The KCM Crew  10-22-2013

Even though no one at KCM actively lists or sells real estate, some of our readers believe that there is an inherent bias toward the real estate community in our writing. For that reason, we want to quote a third party source today. Forbes, in their online edition last week, spoke to the importance of buying a home now rather than waiting.

The article, Should You Buy a Home Now or Pay More Later?, explains:

“With mortgage rates creeping up toward 5% as 2013 draws to a close, potential home buyers have some decisions to make — and soon.

The danger for potential homebuyers isn’t that mortgage rates are nearing 5.00%; the real threat is that rates could go higher, to 5.50% or even 6.00% in 2014.”

The article spells out the financials consequences a buyer would face by waiting. ($67,746 on a $300,000 mortgage).

They went on to identify four things a buyer should take into consideration before delaying a decision to purchase.

  1. Rates will likely rise — and soon with 5% interest rates right around the corner.
  2. The Federal Reserve will stop “tapering” causing rates to return to historically normal levels (6-7%).
  3. Home values are rising
  4. The autumn buying season is underrated as you can take advantage of year-end tax breaks and the fall weather makes it an ideal time to move”.

Bottom Line

The financial advice Forbes gave to their readers was rather simple. Buy now or pay more later!!

Having A Great Neighbor Can Help You Sell Your Home

Having A Great Neighbor Can Help You Sell Your Home.  Your neighbors can be your greatest asset when selling a home.  Things to consider after you buy a home.

1. Get to know the neighbors.  Yes, even the ones that aren’t the friendliest.  Always keep a friendly attitude.

2. Keep your lawn manicured.

3. Be considerate of the cars in your driveway.  If you have a garage use it.

4. Always put your kids outdoor toys away.

5. Clean up the puppy poop and the poop in your back yard.

These are just a few suggestions when you purchase a home.

What are the benefits of being a great neighbor?

1. Neighbors will keep their lawns manicured so you can sell your home.

2. They won’t do strange things when buyers are viewing your home.

3. If a potential buyer asks the neighbor a question, and they will, you don’t have to worry about what they’ll say.

4. If you relocate to a new place the neighbors will watch your home.

Here are a few real situations where I found that neighbors can help or hinder your home sale.

The Bad Neighbor – I was recently showing homes.  Our last showing was a vacant bank owned home.  As I accessed the lockbox to obtain the key, the next door neighbor came to the door, open the door, stark naked andpicked up his newspaper (I think). We are sure his was naked. How strange is that.  He had to know we were outside.  This was a townhome subdivision and the front doors and windows were extremely close.  This dude may not have wanted my buyers as neighbors.

The Perfect Neighbor – After getting all of the listing paperwork signed for an upcoming listing, my seller and I had a brief discussion about her neighbors.  She told me that her neighbors hated that she was selling.  They didn’t want her to move. One even offer to pay her mortgage.  How cool is that.  She wasn’t even in a distressed situation.  While outside one day she mentioned to another neighbor that her home would be on the market and that they might see people coming in and out of the house.  This neighbor told my client that she was so glad she mentioned that she was selling.  The neighbor then took a weekend and cleaned up her lawn, pulled weeds, and trimmed bushes.  Now that’s the “Perfect Neighbor”.

Remember to take time to know your neighbors.  They may be important in assisting in the sale of your home.