PLEASE READ TO THE BOTTOM…THIS INFORMATION MAY SAVE YOU THOUSANDS…! rates are historically low and nobody knows how long rates will stay at this level before they go back up, AND THEY WILL. When…we don’t know…but it will happen.
You have heard all the media describing our real estate market downturn…well that simply ISN’T TRUE. This may be an opportunity that may not come again. Here is a scenerio, using rounded numbers, of a seller who hesitated listing, then selling their home and buying their dream home and saving a substantial amount of money.
This family had grown and they now needed more room in a new home. They had increased their incomes since buying their present home in 2006 near the peak of the market and could afford more, but, not understanding how the market really works, they didn’t want to take a loss.
They bought their home at approximately $300,000.00. With the recent change in our market, their home was now worth approximately $270,000.00. Of course, their first reaction was that they couldn’t lose $30,000.00. Here’s where we came in. On the surface this appeared to be reasonable thinking. However, it couldn’t be further from the truth and here’s how it worked out for them.
The home they wanted to buy was originally approximately $400,000.00, but because of today’s market, it is now valued at approximately $360,000.00. If they would have sold in a market where their home sold at $300,000.00 and their new home cost $400,000.00, the difference would have been $100,000.00. But in today’s market, they priced their home correctly and sold at $270,000.00 and bought at $360,000.00. The difference was now $90,000.00. They now had the home of their dreams and saved $10,000.00.
BUT THAT ISN’T EVEN THE BEST PART…READ ON! We know interest rates will go back up. The question as said before…Is When? They bought this month at 5.0%, were at 6.5% on the previous mortgage. This amounted to an annual savings of $4,116.00 and over the life of the loan, a savings of $123,480.00. Who couldn’t use this savings in their financial planning?
Remember, they are now living in the home of their dreams…CAN YOU AFFORD TO WAIT? This market opportunity will pass you by if you don’t take advantage of the prices and rates now and let the market work for you. Also, remember the Dallas-Fort Worth Market is much different than the National Market.
All this may seem a little confusing. Mary and I would be more than happy to explain everything in detail to you…Don’t wait, contact us today for a FREE consultation at 214-755-3378 or realestate@doanerealtygroup.com
