You have probably heard of FOMO, the fear of missing out. For several years now the fear of missing out on historically low rates has propelled our market. Of course with the spike in rates things have changed. Now we are experiencing FOBATT. Now consumers are fearful of buying at the top. With the changes in rates and multiple years of double digit value increases, I don’t think we can blame them, can we? However, we can offer them answers to calm their new fear. The agents who do and do it proactively will be rewarded with more business.
Over coming weeks we are going to provide you with several message to share with consumers on why now is still the best possible time to buy a home, so you can answer their FOBATT. Starting this week with the numbers. According to top economist across the country values are still going to increase around 4% each year for the next several years. Waiting just one year on a 350k average home means your client will pay 14k more for the home next year, have to increase their downpayment by $2,800 to avoid PMI, experience nearly $100 higher monthly payment, lose another 3k in additional equity from their payments this year and spend 16k more in interest over the life of the loan.
The take away…homes are only going to get more expensive as time goes on. Maybe your message to the consumer needs to be “are you concerned about buying at the top of the market, let me show you why buying now can save you over $35,000.
Keep elevating our industry.
David Veldkamp
RE/MAX GR
Mobile: 616.460.6123
Office: 616.957.0700