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What To Tell Clients Who Are Nervous To Buy Right Now
Why now is actually a great time to buy a home!
There’s a lot of talk out there about how the real estate market is turbulent/crazy/volatile… choose your adjective! And a lot of buyers hear this kind of stuff and get nervous! But the facts are… it’s really not as bad as it’s made out to be. Sure, interest rates aren’t what they were in 2021… but buyers aren’t having to compete with each other as much as they were that year either! Here are a few points I always make when having this discussion with clients or other realtors.
1. It’s always better to pay your own mortgage over someone else’s.
Whether you’re paying rent, or paying a mortgage, either way… you ultimately are paying a mortgage, but if you’re renting, you’re paying your landlord’s mortgage! And who is going to reap the benefits of that? Not you! Wouldn’t you rather have that hard-earned money going toward something that’s your own each month instead of padding your landlord’s wallet?
2. The real estate market isn’t as bad as it’s made out to be.
Another common phrase I hear: “the market is bad” or “interest rates are crazy right now.” Like I said earlier, no, interest rates aren’t what they were in 2021, but we’ve never seen them that low! Talk about “unprecedented times!” I challenge you to go ask someone a little older the highest interest rates they can remember, and they’ll tell you about how rates got up to around 15% and 20% back in the early 80s. But over the last 40 years, average rates have hovered around 6-7%, which is about where it is right now. So no… interest rates aren’t “crazy” right now, they’re just back to average after a historic low.
3. The right time to buy a home is when it feels like the right time
If you keep waiting on the market conditions to be perfect, you could be waiting a long time. If it’s the right time for you personally to buy, then buy! Maybe you’re settling down and starting a family, or need to upsize or downsize for whatever reason, either way, don’t let waiting around for what your idea of the “right market” is to come along, make a move! If you’ve got the means, the motivation, and have found the property you want, go for it! You can always refinance in the future should rates drop again. You’ve got to do what’s best for you and your family!
Buying a home can be intimidating, but it doesn’t have to be! Whether you’re a realtor looking for ways to calm your client’s fears or you, yourself are looking to buy a home in the near future, I hope these points were helpful!