Manage episode 153606665 series 1095358
Are you trying to decide if you should sell your home now or wait for the market to turn around? If so, Nashville Real Estate expert Monte Mohr has prepared a list of four things to consider before you make that decision.
Tina from Nashville wrote in and asked a really great question…
“My husband and I have been discussing whether we should put our home on the market this year or wait until the market turns around. I want to sell now and get into a different school district for the kids but he’s concerned about losing money on our home if we sell now and wants to wait. He promised me he would consider what you suggest as we watch you all the time [on Channel 4 News]. Please share your insights.”
I’d like Tina’s husband to know that I get it – none of us want to lose money on our investments – especially our home, and especially us guys, because we want to know that we’ve taken care of our families and made good decisions. But we also need to realize that it’s going to be a good 2-5 years before we see the market as a whole do much changing. Below are important points for your consideration:
Things To Consider When Deciding If You Should Wait to Buy or Sell:
1. Though you may get more money for your home when you sell, you will also pay more to someone else for the home you buy IF you wait.
2. Interest rates will probably not be as low as they are now. Average mortgage rates for the past 20 years have been closer to 10%.
This is a HUGE factor. We’ve gotten complacent over the last few years because the rate has stayed so consistent. But when you consider the value of a 4% interest rate on a $300,000 mortgage over the term of 30 years, the difference is amazing. Just look at the numbers:
$300,000 @ 4% x 30 years = $1,432 monthly payment (principle and interest)
$300,000 @ 10% x 30 years = $2,632 monthly payment (principle and interest)
That means the same mortgage will cost you $1,200 more per month at the higher interest rate!
So it is really important to remember that interest rates have averaged closer to 10% over the last 20 years. As a matter of fact when I started in this business interest rates were at 12% and that makes a HUGE difference. In the example above, you would pay $144,000 more for the same house in a Franklin Tennessee Subdivision over a 10 year period; just think about that – $144,000 in 10 years – that is a HUGE difference!
3. What is the value of being able to accomplish the desired goals sooner versus later?
The value of time; it wasn’t long ago I was 29 years old and now I’m 59 years old. What is the value of “getting on with life”? What is the value of getting your kids into that school district? What’s the value of getting that larger lot, or a 3-car garage, or the bigger kitchen, or getting closer to work or family, or those types of things? What is the value of “getting on with life” and getting those things that drive you in life; have you considered that?
4. Primary reason not to wait – if Mama’s not happy, nobody’s happy!
This is the most important reason, and no offense to Tina’s husband, but I’ve been married more than once and I’ve learned that if Mama’s not happy, nobody’s happy.
I decided a few years ago to try and help people save money so they could stay competitive in our current market. So if you want to buy a home and you have one to sell first, I will waive the entire listing portion of the commission to reduce your costs. This will allow you to compete with the prices of distressed properties; and there are still distressed properties out there in the marketplace.
What’s the catch? The only catch is that you promise to let me help you buy your next home. You don’t pay anything for the whole process because I work for free on the “selling side” and when you buy another home, that seller will pay my fee. So as far as you’re concerned, it’s all for free and it’s a full service effort – 110%!
This program is really working for a lot of folks. Last month we closed on 18 properties and this month we’re around 16 closings but I promise I am not too busy to give personal service.
Let’s look at a Happy Customer…
Thomas and Kristi had a Home For Sale in Hendersonville and were Channel 4 viewers who saw my offer on the news. They knew they were going to take a hit on their home when selling, but we were able to sell their home in just a couple of weeks and they saved over $9,000 by utilizing my “We Sell Homes For Free” program. They were then able to downsize and get into the home they really wanted.
If you need help buying or selling your home, contact Monte directly at (615) 300-8393.