A colleague of mine share this powerful post summarizing research from a PhD professor at Florida International University and the Editor of the Journal of Housing Research regarding the effects of price changes on listings.
Do you follow your realtor's pricing advice? Will this research effect how you price YOUR home?
Harmful Effects from Changing the Listing Price?
Buying and Selling homes in Eastern Idaho made simple.
18 May 2012
17 May 2012
It bears repeating...
I posted this about a month ago, but just had a presentation to a Seller yesterday and pulled this up as an example.
At 3.75% (30 year fixed) the principal and interest portion of a $200,000 is $926.23
If the rate goes to 4.75% you can only borrow $178,000 for a principal and interest payment of $928.53
If the rate goes to 5.75% you can only borrow $159,000 for a principal and interest payment of $927.88
These numbers are incredibly enlightening! Consider that as a Seller, you bought into our local market in 2007-2008 (at our peak) and purchased a home for $159k and have not refinanced. You are considering listing your home and buying and buying a larger home, but the value for your current house is below what you are expecting, say $135k, so you will be taking a loss. Should you stay, or should you go?
Considering you will be re-buying into the same value-depressed market, for the same payment you can now afford to buy a $200k home (which 4-5 years ago sold for $240k) compared to 4-5 years ago!
Same payment, larger (possibly newer) step-up home. Did you lose or gain?
Because they are so low, interest rates have a greater impact on affordability than either appreciation or depreciation factors at this point. Every 1% change in interest rate impacts affordability by 11%. Here is an illustration to consider.
At 3.75% (30 year fixed) the principal and interest portion of a $200,000 is $926.23
If the rate goes to 4.75% you can only borrow $178,000 for a principal and interest payment of $928.53
If the rate goes to 5.75% you can only borrow $159,000 for a principal and interest payment of $927.88
These numbers are incredibly enlightening! Consider that as a Seller, you bought into our local market in 2007-2008 (at our peak) and purchased a home for $159k and have not refinanced. You are considering listing your home and buying and buying a larger home, but the value for your current house is below what you are expecting, say $135k, so you will be taking a loss. Should you stay, or should you go?
Considering you will be re-buying into the same value-depressed market, for the same payment you can now afford to buy a $200k home (which 4-5 years ago sold for $240k) compared to 4-5 years ago!
Same payment, larger (possibly newer) step-up home. Did you lose or gain?
02 May 2012
Idaho Falls Goes "First Class"
Happy news today for local frequent corporate travelers!
I just read this post in a local blog I follow, BizMojo Idaho. Seems that as of today, the SkyWest service to Salt Lake City now offers first class cabin service.
What a difference a day makes! :)
Check out BizMojo for more information, and other local business news...and tell him Chris Lee sent you! :)
http://www.bizmojoidaho.com/2012/05/first-class-cabin-service-returns-to.html?spref=tw
I just read this post in a local blog I follow, BizMojo Idaho. Seems that as of today, the SkyWest service to Salt Lake City now offers first class cabin service.
What a difference a day makes! :)
Check out BizMojo for more information, and other local business news...and tell him Chris Lee sent you! :)
http://www.bizmojoidaho.com/2012/05/first-class-cabin-service-returns-to.html?spref=tw
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