Why Waiting to Buy Might Cost You More

By Arizona Home Group

Sell your home fast and net thousands more. We’ll make sure you get the absolute top market dollar for your home. We’ve helped thousands of buyers and sellers over the past 30+ years with over 200 5-star reviews.

Waiting for mortgage rates to drop might seem like a smart move, but it can be a costly mistake. Although waiting may show restraint and patience, this approach could be detrimental in the long run. If you’re considering putting off your purchase, here are five reasons why waiting might not be the best choice:

1. Immediate savings from seller concessions. For an average home in Chandler, Arizona, sellers are currently offering discounts averaging 2% off the list price. For a $600,000 home, this means a potential savings of $12,000. About 58% of sellers are also providing additional concessions averaging $10,250. This reduces your upfront costs and can make a big difference in your overall expenses.

2. Loss of home appreciation. In Phoenix, homes appreciate at about 4% annually. On a $600,000 home, this means losing out on approximately $24,000 in potential value if you wait a year. Buying now allows you to start building equity immediately, unlike renting, which does not contribute to property value.

3. The high cost of renting. Renting a similar home in Chandler costs about $3,000 per month, totaling $36,000 annually. This money could be better invested in a mortgage, which helps build equity.

4. Potential rate drops aren’t guaranteed. If rates drop from 6.75% to 6.25%, your monthly payment will decrease by $177. Waiting for rates to drop further might save you $351 per month, but these potential savings may not outweigh the cost of waiting.

5. Market conditions favor buyers now. Current market conditions provide buyers with negotiating power due to increased inventory and flexible sellers. Waiting might mean missing out on these favorable conditions and facing higher competition when rates eventually drop.

The decision to wait for lower rates can be costly. Act now to benefit from current market conditions and start building equity. If you have questions or need personalized advice, reach out to us anytime. We’re here to help you make the best choice for your future!