“The smallest patch of green to arrest the monotony of asphalt and concrete is as important to the value of real estate as streets, sewers and convenient shopping.”-James Felt
If you’re among the lucky ones who are ready and able to buy your first or next home now or in the near future you’re likely to find yourself many options from which to choose.
Whenever I meet with new clients for the first time, I usually try to determine their wants vs. needs. A need would be the main floor bedroom because Grandma visits often and can’t navigate stairs, or a fenced yard because Fido can’t stay in the house all day. A want would be more along the line of a luxurious Master bathroom with heated marble floors and a jetted soaking tub.
These days, with unprecedented low interest rates, it’s possible for home buyers to get their needs PLUS many of the “wants” as an added bonus. Low interest rates mean buyers are able to qualify for more house for the same payment.
Let’s look at a hypothetical couple looking for their first home. Double income, good credit and are looking to keep their principle & interest payment to no more than $2000 per month.
At a rate of 5.5% (where rates were just a short while ago), they would be able to borrow approximately $350,000. With rates in the 4.875 range, they can now borrow roughly $30,000 at the same $2,000 per month. In my market this additional amount can mean the difference between having a soaking tub or shower only in the Master bath, a 3rd car garage vs a 2 bay or even granite counters vs. laminate.
So this pretend couple, gets the payment they want, the soaking tub she wanted, the 3rd car garage he wanted and a little more square footage for the new addition they will have in about 8 months (but don’t know about yet)…. AND they were able to stay within their budget.
Needless to say, they love their Realtor who pointed all of this out to them and then found them their dream home.
I just love happy endings!