I'd Never Pay $650K for This $650K House

If you're waiting to buy a house in the next six months, you're probably watching the wrong numbers.

Because if you're just watching the interest rate and waiting for the to come down, you're watching the wrong thing. If you're just waiting for the rates to come down because you're just looking at your payment, that is the wrong strategy to use. In other words, if you're looking at a house at $650,000 and your payment is X based on 6 and a half% interest rate and 3% down and you see that payment and you're like, I'm going to wait for the rates to come down. That's a strategy we used to use when the sellers had control, but now the buyers have the leverage. So, you need to change the mindset. Instead of saying that, what you need to ask yourself is, how much can I bring the rate down so I can afford that house I'm looking at? instead of waiting for the rates to drop. So, let's give you a real life example. Using that $650,000 we talked about, let's say we negotiate $10,000, so $640,000 price point and a 15,000 credit assuming the lender allows the rate to be bought down. If I was to bring it down from 6.5 to 6%, your payment would drop over $300 a month. And that's just using that example. So, instead of saying, "I'm going to wait for rates to drop," change your mindset and your strategy, change it to, "How long has a house been sitting on the market? How much leverage do I have over the seller? How much can I negotiate? Can I negotiate the price a little down and have them give me a credit of$10 to $20,000 to buy my rate down a full percent so my payment drops anywhere between $3 to $700 using that price point of $650,000 as an example that my friends changes your whole equation. Sellers have lost leverage. Buyers now can negotiate. So, let's negotiate. If you're thinking of buying a house in the next six months, give me a call. Let me do a what if scenario for you and let me explain how this new strategy can change your time frame of when you should buy.

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