The Housing Pitfall of the Pricing Game

Which do you think matters more when waiting for the right time to buy a home? Is it securing a low purchase price, or locking in a great financing rate?

Most buyers become focused on purchase price when they’re considering whether or not to buy. The question you often hear is the same: “Has the market bottomed out yet?” The idea of getting “the best deal” on a home is paramount to these price shoppers, and indeed for cash buyers, this may be the primary concern.

While negotiating a great price is an important part of the equation, the value of securing great financing terms cannot be overstated. The inherent risk in waiting for the market to hit bottom is that you’ll also miss out on the best interest rates available.

Imagine, for example, you’re waiting for homes to drop an additional X% in value. While you’re waiting, mortgage rates rise Y%. Sure, you might secure the home at a better purchase price, but what you’ll pay over the life of the loan will be significantly higher than buying when the market was more expensive (but rates were lower).

Perhaps the most punishing part of missing great financing is the net impact on your monthly payment. Even a 1% increase in your mortgage rate can end up costing as much as a brutal 10% increase in your monthly payment.

Buying a home is not like buying a nice coffee table. Price is not the sole concern. Given the complexities of price, property taxes, financing terms, and the larger tax implications of home ownership, it truly pays to consult with an agent who can help you weigh the pros and cons and help you make the right move.

I’m always happy to work with you to navigate the market, negotiate price, and put you in touch with mortgage professionals who will help you get the best rate possible. Contact us today and we can help you explore your options: Kevin and Jennifer Hanley, REALTORS 904-422-7626 http://www.HanleyHomeTeam.com

Advertisement

Does Your Home Stink?

Occasionally clients ask us about little extra tips and tricks to improve the appeal of their home while it’s on the market. This is especially true when it comes to open houses or showings. Below we answer a common question about home odors.

Q: Is it a good idea to add pleasant odors (cookies baking, cinnamon, fresh flowers) to a staged home for showings?

A: Not necessarily. Odors do matter, but assuming you know what “a nice smell” is to you buyers could be trouble.

If anything, your house should smell freshly cleaned, but not “chemical.” Your best bet is to focus on eliminating foul or dominant odors.

If the house smells stuffy or “closed up” (you know, that “back of the closet with coats from 1974 smell”), concentrate on circulating fresh air first and foremost. Replacing air filters in forced heat/air systems is a good place to start.

The problem with adding odors such as baking cookies or fresh coffee is one of preference. How do you know what sort of associations buyers will have with the smells you think are attractive? A bright, Spring smell might come across as cloying to your visitors. (Floral scents may even set off allergies!)

Also consider this: Are you adding a “good smell” in an effort to cover up a bad smell? We all know how well that works out. The mix is pretty awful.

Finally, many buyers are aware of the “sweet smell” tactic associated with open houses. While your intentions may be good, some savvy prospects may be thinking, “I wonder what that smell is supposed to distract us from?”

Need a sniff test before hand? Ask a few neighbors or friends to give them your opinion when they walk in the door fresh, prior to the main open house or showing.

We love to work with clients to prepare their home for a top-dollar sale. Need more ideas for staging or improving the curb appeal of your home? Let’s chat! Get in touch today: Kevin and Jennifer Hanley, REALTORS 904-422-7626 http://www.HanleyHomeTeam.com