REALTORS® Jeff Sibbach and Patty LaBenske talk about why 2023 will be a great time to buy. Who should buy a house? Why is now the right time to buy?
Patty: Hi, I’m Patty LaBenske!
Jeff: And I’m Jeff Sibbach!
Patty & Jeff: We’re the Sibbach Team!
Jeff: So Patty what’s going on?
Patty: So we were talking the other day about the market and why we think it’s a much better time to buy than you think it is.
Jeff: Patty, who do you think that it’s a better time to buy for?
Patty: Renters, people that are spending a lot of money on their rent, first-time buyers, contingent home sellers that have to sell in order to buy, if you’re looking to get a bigger house or a smaller house it’s your time.
Jeff: And of course, your relocation, your people that have a bigger down payment. I mean I think people should be getting excited about the market because we’re coming into a great time. Patty, why is it a great time?
Patty: Because you are getting 15 to 30% off of peak prices.
Jeff: Fifteen to 30! I’m going to show you the math, we’re going to use an example.
…..Jeff: So let’s say that you were looking in the house a year ago and it was priced at $940,000 as the original list price, you would have paid over a million dollars, but we’re not even counting what people were overpaying while demand was at its highest point. Now you can buy that house at 15% off of peak prices, so instead of paying $940,000 you get a discount and you get that house for $800,000. If you put $160,000 down, which is 20%, you’re gonna have to mortgage $640,000. If you go with the current mortgage rate which is 7.22%, which is why nobody’s buying, your mortgage payment is going to be $4352 plus taxes and insurance, versus why everybody is screaming saying it’s so expensive. If two years ago you got a mortgage of 4.22%, your payment would be twelve hundred dollars less. Okay, now based upon the current economic policies of America that we know in the future they’re going to lower rates because that’s what they’ve been doing for the last 20 years, I’m going to assume that you’re going to pay that $1200 extra for 36 months or three years until you get a chance to refinance. So if you paid that payment that would be $43,200. But remember, the peak price was $940,000 and you’re getting that house for 15% off, so you saved $140,000 and it cost you only $43,000 to get that savings, you also get to pick the house of your dreams…..
Patty: You are getting the pick of the litter right now, you can look at 20 homes, 30 homes, you can sleep on it, you can think about it, make a list of your likes and don’t likes.
Jeff: I mean the out-of-state buyers had to make offers before they even saw the house, now they can fly in and look at 12 and then go home and then make a decision. It’s a pretty awesome time.
Patty: You’ve got negotiation power, so that means you’re looking at a seller credit. Even if you’re getting that better pricing when you buy it you can get seller credit, you can get repairs, you can get closing costs assistance, you could even buy your rate down.
Jeff: So how much are they getting in credit and repairs?
Patty: Anywhere up to 3-4% in credits and repairs.
Jeff: Wow, now you can see if you fit one of these categories we’d love to work with you because we think 2023 is going to be a great time to buy!