Waiting Could Cost You!
Waiting to Buy or Sell Your Home Could Cost You!
Full Video Transcript Below
[00:00:00] Well, good afternoon, real estate fans. I'm Alice Lema. I'm a broker here at John L. Scott in Southern Oregon. And this is our weekly podcast. And today we're going to talk about the hard cost of waiting until 2022 to buy or sell. Everybody's got choices. The buying and selling environment is really good right now.
[00:00:20] We have a lot of people on the fence that say, we're going to wait until 2022, but there's some real, real costs involved in that on both sides. So we're going to talk about that three things to consider before waiting to 2022. So, you know, what's going to hit your pocketbook.
[00:00:36] Before we launched into that I want to give you a chance to like the channel, to subscribe, leave a comment, ask some questions, forward it to your friends. This is an educational series. I want to know if it's helping.
[00:00:46] Okay. So here we go. Three things to consider before waiting until 2022 to buy or sell, the hard costs because it could be thousands.
[00:00:55] So the first thing that I want to mention is higher interest rates. And I know I sound like a broken record. And obviously the buyers are going to have a higher mortgage payment monthly, if they can afford it. But it's also gonna mean they're buying less of a house or a neighborhood they're not super thrilled with, but it's going to hit their pocket book.
[00:01:13] And most people will try to still get the house they want. That's just human nature. So this is my prediction that the buyers are going to go close to, to the edge of their financial approval and try to get that house that they want. But it's going to put more pressure on their pocketbook and it's going to cost them more.
[00:01:30] There's going to be a graph. In the podcast from a website that I subscribe to called KCM, keeping current matters, love this. You should subscribe to them too. And they're going to actually have some hard figures because it literally is thousands, if the interest rates bump up in 2022. And here we are already in September, end of September, early October, and I think they already are going up.
[00:01:54] So it's already happening. So yeah, the higher interest rate is going to cost the buyers more in their monthly payment. And the sellers, the sellers are going to get hit with more concessions from the buyers. Andthey're going to have to be more flexible on the price. So there's real money that's going to hit your pocket book on both sides, buyers and sellers. That's number one.
[00:02:16] Number two. Buyers. You're going to lose the appreciation. If you wait till next year, even though the market might be stabilizing and slowing down just a little bit, there's still appreciation. At least in Southern Oregon, we still, we still run at a good clip here. You know, we, we average sometimes five to sometimes 9%, but five to 7%, five to 6%. That's kind of a normal, sustainable appreciation rate for us. And so you're going to lose that, that monthly or yearly appreciation by waiting. And then on the seller side, this is something I don't think people think about, you know, you think, oh, I'm going to get that appreciation too.
[00:02:53] Yeah. But you know what? You probably can't cash in on it now because the buyers are not going to give that to you. That appreciation. It's just going to go to them. So the whoever's buying the house next is probably going to capitalize on that. Not you Mr. And Mrs. Seller, because you only get to cash in that appreciation if the market wants to give it to you.
[00:03:13] So yeah, if you're going to wait until next year, let the market go up a little bit. I wouldn't bank on getting that extra two, three, 5% in your pocket book. If you're selling, because you might not get it, you might have to give it to the buyer. So think about that that's hard money in your pocket, but that was number two.
[00:03:33] Okay. Number three, the full impact of the COVID shutdown unwinding through our economy, I think, is really going to be absorbed in 2022. I think there's still more chaos coming with not only the vaccinations or not vaccinations, the boosters, the what are we going to do? I think 2022 is our final absorbing as a society and an economy of the side effect of the COVID.
[00:03:59] So if I'm right, then the final decisions about, are people going back to classroom? Are people going back to work? Are people traveling, this idea that you don't have to live near your work or your school anymore, I think is also going to be absorbed not only in the housing market, but in the economy in general.
[00:04:20] And I think whatever's going to happen is going to happen in 2022. That's not to say there's still more years of absorption and a winding of this incredible event incredibly tragic event, but I think the bulk of it, this is just my Alice, my opinion. We're going to experience in 2022, we're going to make our final adjustments and kind of move on from there.
[00:04:42] So that creates a lot of uncertainty. So if you're buying and selling in 2022, and you have to find we'll deal with it, we'll make it work. It'll be fine. But if you've got choices again, buying and selling right now, you know, the market conditions, you know, the interest rate, you know, the economy. You know, the federal reserve bank, you know, for all their ups and downs and willy nillyness, we kind of know what they're going to do.
[00:05:08] Next year it's going to be a completely different market. I said this last week, completely different market, completely different elements. If we have other world events that we haven't anticipated yet, then that has to be worked into our markets. So. I think number three is going to hit your pocket book. The full impact of the COVID hasn't been felt yet. It's going to be absorbed next year.
[00:05:30] So there is a cost to waiting until next year to see how our economy and our housing market finally, you know, finishes, absorbing all that.
[00:05:40] Okay. So those are my three things to consider. If you want to buy in 2022 or sell in 2022, I am Alice Lema broker here at John L. Scott real estate in Southern Oregon. I want to be your agent. I'm a great listing agent. I am a great buyer's agent. I work with a lot of tenants. A lot of upsizes, downsizers. All three counties. This is just my bag.
[00:06:02] I also do rehab on the side. So if you want to talk about fixing something, we can have a very honest conversation about that because sometimes it's worth it. And sometimes it's not. And I have rehab videos on my YouTube channel and some of my podcasts, you might want to go look at those. And I don't mean to scare anybody, but sometimes, oh, like I said, it's worth it sometimes it's not. But anyway, I'm around all weekend. Call me, text me (541) 301-7980. And let's talk about your real estate and what you're doing this year and what you're doing next year.
[00:06:32] Okay. Have a beautiful weekend. Catch you next week. Bye now.