When Considering a Home, Do All the Math

As a buyer's agent in Sarasota, I talk to alot of prospective home owners. Given the state of the market over the last 24 months, I can understand why many of them have chosen to adopt a "wait and see" attitude.

But there are several factors involved in the true cost of a home. One is, of course, the list price. This is the magic number that everyone seems to watch.

At this point in the market, however, the more important number may be INTEREST RATES. Most data seems to indicate home prices are near the bottom, and may begin to slowly creep up. But even if they drop slightly lower, if the interest rates are rising, you will pay more, long term, for your home.

Fact is , that over 30 years, the interest is the more compelling number. And getting the home for $10,000 cheaper is actually far less of a concern than getting a home at a good interest rate.

Last week, interest rates rose on data that home sales were picking up. These are both good indicators that the market may be ready to turn around. Don't let the interest rates quietly climb while waiting for another price drop which experts say isn't coming - it could prove costly over the years.


Regina A. Brassil, REALTOR
This article is the sole opinion of the author.