It’s Not About the Price
May 12, 2021
Previously we posted educating your qualified buyer helps with the motivation of entering or staying in the Super Hot Sellers Market. If your buyers are well-informed and understand what it takes to purchase a house, motivation will follow – with an accepted offer.
One of the first things to explain to your buyers, especially if they are feeling discouraged, is NOT Buying Fast (or NOW) COSTS them MORE Money.
- If prices are going up 1% per month right now… Then a $300,000 house goes up $3K a month…when you DON’T BUY it someone else got that equity. And you pay $3K more the next one. If it’s 2% a month… that’s $6K for the next house next month – and a higher monthly payment.
- Smart Buyers don’t buy what it’s worth NOW…They buy what it’s worth when you CLOSE a few months from now.
- Or even 6-12 months from now… because THEY will be the owner of it then and will have that equity build up for THEMSELVES.
- TEACH BUYERS they can gain the equity that will happen over the next 6-12 months… OR they can let someone else gain it.
Below is an example that a Buyer could make nearly $15,000 a year in the next 5 years by BUYING NOW!
If your buyer is fixated on a Home’s Price … Talk MONTHLY payments, not the total price of the home.
Payment VS. Price
Rather than $10K more… it’s $2,000 more down payment… and $45/month more. Price is less relevant to a buyer when it’s financed. It’s not the PRICE, it’s the monthly PAYMENT.
If you don’t have one now, get a mortgage calculator for your phone and show your buyer differences in purchase prices and the monthly mortgage amounts. It just may surprise them.
You will want to keep in mind, PRICE is more important to the Seller and does make a difference in the Seller’s bottom line. In this Super Hot Sellers Market, as mentioned above, you will not get a “bargain” and will need to actually “buy up” to what the house will be worth in just a few months.
The next blog post is being aggressive in this Super Hot Sellers Market.
