Blog

July 2015

What If I Wait Until Next Year to Buy?



Keeping Current Matters published a very informative article today about the decision to wait another year to buy. The following is their article.

First-time homebuyers are flocking to the housing market in greater numbers than any time in the last few years. Renters who are ready and willing to buy are now realizing that they are also able to as well. Many first-time buyers are Millennials (born between 1981 – 1997).

If you are one of the many in this generation who sees your friends and family diving head first into the real estate market, and wonder if now is the time for you to do the same, keep reading!

The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.

Let’s look at an example of what the experts are predicting for the upcoming year, and what that really would mean for you. Let’s say you’re 30 and your dream house costs $250,000 today. Right now mortgage interest rates are at or about 4%.

Your monthly mortgage payment (principal & interest only) would be $1,193.54.


But you’re busy, you like your apartment, and moving is such a hassle. You decide to wait until next year to buy. CoreLogic predicts that home prices will appreciate by 5.1% in the next 12 months; this means that same house you loved now costs, $262,750.

Freddie Mac predicts that over this same period of time, interest rates will be a full point higher at 5.0%. Your new payment per month is now $1,410.50.

The difference in payment is $216.96 PER MONTH!


That’s basically like taking $8 and tossing it out the window EVERY DAY!

Or you could look at it this way:

That’s your morning coffee everyday on the way to work (average $2) with $10 left for lunch!
There goes Friday Sushi Night! ($50 x 4)
Stressed Out? How about a few deep tissue massages with tip!
Need a new car? You could get a brand new car for $217 a month.
Let’s look at that number annually! Over the course of your new mortgage at 5.0%, your annual additional cost would be $2,603.52!

Had your eye on a vacation in the Caribbean? How about a 2-week trip through Europe? Or maybe your new house could really use a deck for entertaining. We could come up with 100’s of ways to spend $2,603, and we’re sure you could too!

Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spent an additional $78,105.60, all because when you were 30 you thought moving in 2015 was such a hassle or loved your apartment too much to leave yet.

Or maybe there wasn’t an agent out there who educated you on the true cost of waiting a year. Maybe they thought you wouldn’t be ready. But if they showed you that you could save $78,000 you’d at least listen to what they had to say.

They say hindsight is 20/20, we’d like to think that 30 years from now when you are 60, looking back, you would say to buy now…

June Top Producer: Mary Layton!

Everyone give our Top Producer for June a round of applause! Congratulations, Mary! Keep up the great work!



Mary has been in the business since 1981, and has practiced as a Realtor since 1994. * Broker Associate * Ball Homes Specialist in all Central Kentucky Ball Homes neighborhoods * While attending Eastern Kentucky University, Mary majored in real estate and has been actively involved in the real estate community ever since. * She is a member of the Richmond Chamber of Commerce and has been the Director of Education for the Madison County Board of Realtors. * Mary has always enjoyed residential sales, particularly relocation and new homes. She has her ABR, ALHS, CNHS, CRS, e-PRO, GRI, SFR, and SRES designations. * Mary strives to treat buyers and sellers respectfully and professionally, and to uphold the highest of ethical standards. Her personal goal is one hundred percent satisfaction.

The Best & Worst Times to...

Ever have chores that you keep pushing off because you think there has to be a better time to do it? We all have things we need to do that we keep pushing off. Here are the best and worst times to do all kinds of things around your home.

...Clean your gutters.
Best: Early spring and late fall after all the leaves have fallen. Cleaning out your gutters twice a year prevents build-up of debris which weighs down your gutters.
Worst: Early fall before the leave are done falling. It'll undo everything you just accomplished! Also avoid this chore when the ground is wet and slick. That makes it very dangerous to be on a ladder!

...Get your chimney inspected.

Best: Spring when the chimney business is slow. Since the companies are so slow during this time, they might offer some discounts. This timing will also allow you plenty of time to make any repairs before the cold returns.
Worst: Don't do this during the fall!

...Paint your house's exterior.
Best: On a dry day when the temperatures should be between 50 and 95 degrees and shouldn't drop down below freezing at night. Early summer is usually the best.
Worst: When it's about to rain, humid, or chilly. Avoid super windy days too. It makes being on a ladder a little scary!

...Buy a major appliance.

Best: September and October. These months are just before the new model releases, and the stores get eager to make room in their inventory meaning discounts for you. Also look for sales during the weekends before or after holidays.
Worst: November, December, and January. These months are right when all the new models come out, and you'll be paying full price.

...Grocery shop.
Best: For the biggest savings, hit the store the same day the ad comes out. To avoid crowds, shop Monday or Tuesday between 10am and 3 pm if you can.
Worst: Weekends are going to draw the most people and have the biggest crowds. After 6 on weeknights will be busy too when everyone's trying to rush in after work.

...Clean your oven.
Best: When you don't need to be in your kitchen for a while. The oven's self-clean cycle can take three or more hours. Make sure to do it on a day when you can have your windows open, so you can air out those funky fumes.
Worst: Before bed or when you're not home. Oven grime could get smoky or even catch on fire.

...Plant a tree.
Best: Once the ground has thawed in the spring and before your tree has sprouted all its leaves. Or early fall.
Worst: Midsummer is the worst time to plant a tree. The heat and process of transplanting can stress the tree causing it to have less energy to settle its roots into its new home.

...Reseed your lawn.
Best: Fall if you live in a cool climate and spring or summer if you live somewhere warm. Grasses grown in cooler climates need cool soil and adequate rainfall to establish their roots. In warmer areas, grasses prefer temperatures in the 70s or higher to get started.
Worst: Midsummer for cool climates because heat poses a challenge for these grasses to grow. For warmer climates, the worst time to plant is in the early fall because the grass won't have enough time to establish roots before the temperatures drop.

...Plant bulbs.
Best: Six weeks before your area's first frost date for spring-blooming plants. For summer bloomers, plant them late in spring when the chance for frost is over.
Worst: Early in the spring when cold, wet soil can cause bulbs to rot.

Let's all get started on these chores and knock out that "honey-do" list!