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Date: 11/02/2022

As interest rates continue to climb, you’re probably thinking about sitting this market out, and waiting until interest rates calm down again.

It’s just too hard to afford the mortgage payment when rates are over 7%, which makes your reason very valid.

However, here are the top 3 reasons to buy right now versus waiting for rates to drop which may change you perspective on things. As the old saying goes, don’t wait to buy, buy & wait.

Reason #1: Buy Low

What caused houses to sky rocket was a combination of historically low inventory and historically low interest rates, pushing demand through the roof.

Right now, inventory levels have gone up with a lot more houses to choose from on the market.

With rising rates, the demand for housing has gone down quite a bit as many buyers are unable to compete with the interest rates, leaving motivated sellers even more motivated to sell, with price reductions across the board.

Now is your time to negotiate a lower price, 10, 20 even 30% or more. Don’t hesitate to throw a “disrespectful offer”.

Get the conversation started!

Make sure you are working with a buyer’s agent that has top level communication skills, who’s able to convey your offer to the listing agent and the seller in the nicest way possible, and either score big, or have regrets about not trying when it’s too late and prices go up again.

Reason #2: Interest Rate Buy Down’s

An interest rate buy down is a way for the seller to pay down your interest rate for a few years.

If your rate right now is 7%, it can be negotiated so that your first year’s rate is 5%, the second year is 6%, and 3rd year the rate stabilizes back to 7%.

All paid by the seller!

The great thing about this strategy is that not only you can negotiate a better home purchase price and a lower interest rate, you can also re-finance at ANY TIME during those first few years.

Lenders are very hungry for your business right now, so much so that they would be willing to lock you at a lower rate AND pay for your lender-refinance fees.

You can quite literally have your cake and eat it too, and the only thing allowing this to happen is our current market conditions which are subject to change.

This will not last long!

If you want to learn more about IRB’s (interest rate buy downs) visit this link:

Reason #3: More Buying Power

The average buyer and their average real estate agent may not know about the strategies above, it is just now slowly starting to spread as a viable strategy to get buyers into their dream home amidst the high interest rates.

A lethal combination of the right tools, and the right negotiation skills of your real estate agent, and the right lender who can actually work with interest rate buy downs, is a recipe for success.

This allows you to have more options open and actually compete in a market against so many buyers who think they can’t afford their dream home, who many not know about these strategies and how to take advantage of current market conditions.

As the old saying goes, don’t wait to buy, buy and wait, and, marry the house and date the rate!

If you have any questions please email or text 949-996-9885