A Home’s Cost vs. Price Explained

If you are one of those people out there looking to purchase your new home, whether you are a first time buyer or someone who’s looking at moving up to a bigger home or down-sizing now is the time to buy.

I’ve included an article from the KCM Crew who have explained quite clearly why the time is now with the interest rates being so low.

I’ve been in the Real Estate market for over 26 yrs as a Hard Money Broker. If you think you would have trouble qualifying for a loan due to poor credit, recent bankruptcy, foreclosure, etc check into this option with your local Hard Money Lender and see what they can do to help you. Best of luck to you!  

Forest Tardibuono is Co-Owner and CA BRE Broker known as “The Guy in the White Hat” of Sun Pacific Mortgage & Real Estate - Your Northern CA Hard Money Lender since 1988. P.S. We love referrals!  www.sunpacmortgage.comBRE license #01464899/NMLS #360993

A Home’s Cost vs. Price Explained

By: KCM Crew, April 7th 2014
http://www.keepingcurrentmatters.com/2014/04/07/a-homes-cost-vs-pri...

We have often talked about the difference between COST and PRICE. As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first time or repeat buyer, you must not be concerned about price but instead about the ‘long term cost’ of the home. Let us explain.

Recently, we reported that a nationwide panel of over one hundred economists, real estate experts and investment & market strategists projected that home values would appreciate by approximately 8% from now to the end of 2015.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30 year fixed mortgage rate will be 5.7% by the end of next year.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

Agents who desire an even deeper understanding of how interest rates and home prices will dramatically impact this spring buyers’ season, should reserve a seat for our FREE webinar, “Spring Ahead in 2014: KCM’s Action Plan for Dominating this Buyers’...,” on Thursday, April 17th at 2PM ET.

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