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Wall Street Journal Says Buyers Shouldn't Wait
Buyer
Buyers shouldn’t wait on falling prices
NEW YORK – Aug. 5, 2009 – Fear of overpaying for property is common these days, especially in places where prices continue to be unstable. If you encounter potential buyers afraid to commit based on a fear that they’ll pay too much, point out these factors:
• Waiting for the right time can be expensive. Some buyers would have more equity today, despite falling prices, if they had bought when they first considered it instead of continuing to pay rent.
• Financing is fickle. Some people who were highly qualified last year can’t find financing this year because the credit market has tightened or their personal financial situation now makes them an undesirable borrower.
• Interest rates are headed up. If prices decline by another 10 percent but interest rates increase by 1 percentage point, the monthly payment will be the same.
Source: The Wall Street Journal, Douglas Heddings (07/27/2009)
NEW YORK – Aug. 5, 2009 – Fear of overpaying for property is common these days, especially in places where prices continue to be unstable. If you encounter potential buyers afraid to commit based on a fear that they’ll pay too much, point out these factors:
• Waiting for the right time can be expensive. Some buyers would have more equity today, despite falling prices, if they had bought when they first considered it instead of continuing to pay rent.
• Financing is fickle. Some people who were highly qualified last year can’t find financing this year because the credit market has tightened or their personal financial situation now makes them an undesirable borrower.
• Interest rates are headed up. If prices decline by another 10 percent but interest rates increase by 1 percentage point, the monthly payment will be the same.
Source: The Wall Street Journal, Douglas Heddings (07/27/2009)
Carey Frankel, ABR, GRI
Phyllis Frankel Realty Group, Inc.
carey@frankelrealtygroup.com
www.frankelrealtygroup.com
904-273-0125 office
800-999-0245 toll free
904-273-2475 fax
Phyllis Frankel Realty Group, Inc.
carey@frankelrealtygroup.com
www.frankelrealtygroup.com
904-273-0125 office
800-999-0245 toll free
904-273-2475 fax
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