Are you teetering on whether to sell your home? Trying to weigh the pros and cons? Here are three reasons why now is a perfect time to sell your home!
1. Interest rates are low –
What does that mean? You go to your mortgage lender to get pre-qualified, then he or she tells you that you can afford up to $1000/mo for principal and interest (taxes, homeowner’s insurance and mortgage insurance are not included). Sales Price of $245,000.
- Sales price $245,000
- $1,000 per month
- 30-year fixed rate
- 20 percent down payment
- Loan amount of $196,000
- 4.5% interest rate
Take the same situation, but assume a 5.5% interest rate. The maximum sales price decreases to $219,000. With 20% down payment, the loan amount is now $175,200 or an approximately 10% decrease in your purchasing power for the same monthly payment.
Look to see how a .5% interest rate increase affects your purchasing power.
(NOTE: Examples are for illustration purposes only.)
With these examples you’ll see that your purchasing power decreases by approximately 4-5% with a .5% interest rate increase. So, you can imagine that an increase of 1% to your interest rate will decrease your buying power by approximately 9-11%.
With current interest rates around 4.125% it makes now a great time to buy a home because it will allow you to have more buying power with your money. More bang for your buck!
2. Homes are selling fast –
Currently we have 470 homes on the market in Cheyenne. The average days on market is 40. Second quarter 2017 we had 414 homes on the market and the average days on market were 43. So homes are actually selling faster on average in Cheyenne now than the second quarter.
3. Move in 2017 –
If it is your goal to sell your home and buy a new one this year, then it’s not too late! If your home is priced right, in good condition and you have the right marketing plan, then it can still happen in the 4th quarter.
Just do it! Call one of our Listing Specialists today to get started at 307-635-0303. To get an estimate of what your home is worth go to our website.