Very Important for Anyone Buying or Selling Real Estate

DiceVery Important!  Very Important!  Very Important!

If you are considering buying or selling a property in the next 120 Days – do it now. Here’s why:


The midterm elections

The current party in power is not doing well with the midterm elections and history has always shown us that whoever is in power – whether Republicans or Democrats – when the midterm elections are not going their way,  there is a tendency to artificially push the interest rates down for 90 to 120 days. This is so voters see prices going down and vote for the party that lowered prices. You can see it now with the recent drop in interest rates and the price of gas – both lower right now and will remain lower for the next 90 – 120 days.

BUT because the government needs interest income to pay the bills interest rates will go back up go up after the elections.


What does this mean to you as a Buyer?

You need to buy now because prices are flat and interest rates are low. Don’t be overly concerned with the price you pay for the property but what you pay per month. Here’s what I mean.

Let’s say you are looking at a $300,000 property and your monthly mortgage payment is about $1,600. When interest rates go from the current 3.9% to 4.9% (Freddy Mac expects 30 yr. Mortgage rates to be at 5% by the end of next year) that $1,600 per month no longer buys you the $300,000 property – it now buys you a $275,000 property.

Or the $300,000 property now costs you $1,750 a month.

I know some of you are thinking that $150 a month isn’t so bad but over a course of a year its $1,800 – or a free month’s mortgage payment. I don’t know about you but I would take a free month if could get one. Then if you look at the $150 per month over the life of the loan it balloons to $54,000 – or an additional 20% tacked on to the cost of the property because you decided to wait to buy.

Again – if you are considering buying real estate in the next 120 days (3 months) you need to buy now because prices are flat and interest rates are low. They won’t stay that way.


What the midterm elections mean to sellers:

Because interest rates are artificially suppressed right now more people have more purchasing power to buy your property. If you wait and interest rates go up all those people that could afford $1600 per month for your $300,000 property can now only to pay $275,000 and you just sacrificed $25,000.

If you are considering selling in the next 120 days – now is the time to do it.


Don’t Give Your Money Away

Whether you are a buyer or seller market forces are working in your favor right now so take advantage of it if you can.


About The Author

John_Moran[1]My name is John Moran – I’m the lead agent on Keller Williams Realty’s At The Beach Team. I and all my team members are committed to doing the very best we can to get you the greatest return for your real estate investment and will strive to help you maximize your position as a buyer or seller.

I hope this information is helpful for you and if there is anything I can do to help you in the future please do not hesitate to call or text me at 850-217-7618, or email me at 


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– John Moran