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The True Cost of Waiting to Buy A Home in Sacramento
The true cost of waiting to buy a home in Sacramento, as written by our fantastic lender, Dan Tharp, with Guild Mortgage., Enjoy. — JaCi Wallace.
I know shopping for a home today is hard work and very frustrating at times. Inventory is low, and demand is high – It may take many offers, and a few tension-filled bidding sessions, before you land that home. Buyers can quickly get discouraged and say, “I am tired of this. I am just going sign a new rental lease instead and try this again in 6 months to a year”.
Sacramento County forecasted appreciation %
Here’s the thing: you can take some time off, but the market isn’t taking time off, even with COVID. For example, in Sacramento County, the forecasted appreciation is 4.22% in just the next six months; let’s quantify that. A home worth $442,000 today would be worth $18,637 more in 6 months. Being careful with this prediction, even if we cut this estimate of appreciation in half to 2.4%, waiting would require you to get a bigger loan, and pay more every month, or put more money down.
The effects of COVID
I think the effects of COVID will continue to ripple through our economy in ways we can’t even imagine. If home prices do dip temporarily, the economic value to a person of owning their own home, and taking advantage of today’s super-low 30-year fixed rates, will put them in a much healthier long term financial position than choosing to rent for the next several years. The key is for people to buy homes that they enjoy living in, with a long term outlook. A short term paper loss is nothing compared to the long term economic benefits a homeowner would receive.
And what about interest rates?
Should you wait until rates go down further? No, the monthly savings with a lower rate are nice but small compared to the missed appreciation and amortization. It could take longer for the incremental savings of a lower rate in the future to make up for the money lost by waiting. Should rates drop significantly, you can always refinance in the future. Stick with it, keep shopping, and you will find something!
And remember, there’s no guarantee that rates head even lower. It’s essential to weigh the individual options for you. To avoid the true cost of waiting to buy a home in Sacramento, call Weintraub & Wallace Realtors with RE/MAX Gold. We can be reached at 916-233-6759. To obtain your financing with a true professional, call Dan Tharp with Guild Mortgage. Contact info below.
Where You Will Find Your Dream Home in Sacramento
Thinking about a dream home in Sacramento?
Buyers who are looking for a home in Sacramento tend to end up on my Sacramento real estate website because they find the link for homes in the area where they want to live leading to my site. I am not sure why my website tends to rank higher in Google than others but it’s a site I’ve worked very hard to support, and I’ve protected my domain name from inception.
I also create a lot of content for my readers that they find useful. I blog about what happens to me from day to day as a Sacramento real estate agent and woman over 60 who can’t believe that nobody has yet written the book: Shit That Happens to You When You Get Old. This drives readers to see what I’ve been up to. Recently, I’ve added a “subscribe to” link directly to the right of my blogs so my readers can enter an email address and voila! My blog will appear in their email every morning, no more clicking around. But they know that they can always visit my website to find a home in Sacramento.
I love to connect online, reach out to clients and showcase my sellers’ homes to a local as well as nationwide market. Every so often I’ll get an email from an agent who works at any of the smaller competing brokerages around town. They write to say that when they type the address of their listing into Google, some random home in Sacramento, my website pops up. This upsets them to no end, and they accuse me of theft, as though I had anything to do with their non-ability to maintain and promote an online presence.
Every home that is for sale in MLS throughout the Sacramento Valley is on my website, just like you’ll find on any other agent’s website through an IDX. The fact that an address entry into a search engine also directs buyers to my website is a credit to the fact that I am a top producer in Sacramento who sells a ton of homes. I’ve also been writing online for years. I am tough competition for other agents.
Yet, that’s a great benefit to my sellers. If they list with another agent, though, that home in Sacramento could very well be showcased in Google with a link to my website, so they may as well list with this Sacramento real estate agent to start with.
