Should You Buy Now or Buy Later. Pros and Cons.

We previously talked about how buying down in interest rate works, but despite higher interest rates today, should you still consider buying now or waiting until rates come down.  Let's take a look.

Buying Now

  • With most people having the mentality to wait to buy until rates come down, you will have almost no competition on when selecting and purchasing a home.  You can basically can pick the house you want and have no one bidding against you.
  • Since there are a limited number of buyers in the marketplace right now, sellers have never been more willing to offer buyers concessions like interest rate buy downs and closing cost credits.
  • With no competition, you can certainly negotiate a better price on the home.
  • You can get moved in today, be comfortable in your new home and start building equity right away.
  • Already having secured the home of your dreams, you can simply refinance the mortgage when rates come down.

Waiting Until Later

  • If you wait for rates to come down just like everyone else, the market is going to be flooded with buyers and you'll be competing on almost every listing.
  • Because of the fierce competition, sellers will not be willing to offer any buyer concessions like rate buy downs or closing cost credits.
  • You also won't be able to negotiate the price down. 
  • Not only won't you be able to negotiate the price down, you may very well have to pay over asking and even over the appraised value.
  • With so much competition, you may not be able to secure a house at all.

I think it's clear that buying today vs. waiting is a much better path to homeownership.  So, I say buy today and let everyone else battle it out when rates come down while you're already relaxing in your new home.

Post a Comment