INFO TO GET BUYERS OFF THE FENCE

With interest rates at record lows, plus the $6500 - $8000 tax incentive for buyers, there has never been a better time to purchase a home. Why are buyers waiting? What can agents do to help buyer's realize this wonderful opportunity? Sometimes a little basic math can plant the seed. The following is a simple but powerful analysis by Pat Zaby:

"Did you know that a 1/2% change in interest is

approximately equal to a 5% change in
sales price?"

This is a powerful statement that can help you get buyers off the fence. Buyers need to realize the importance of the relationship of interest rates to the monthly payments.

Change in Interest vs Reduced Sales Price

Purchase Price $200,000 / Term 30 Yrs.

Interest Rate Payment Increase in Price

5% $1073.64

5 1/2 % $1135.58 5%+ = $1127.33

6% $1199.10 10%+ = $1181.01

An increase in either interest rates or prices can add significant dollars to monthly payments. This is the message to buyers who are waiting for the "bottom".

Professional agents know the numbers and use them to educate their clients.