7 repair requests to re-consider

Missy Yost of Inman News wrote an interesting article a while back about buyers being educated regarding which home repairs are actually necessary before finalizing a deal. I’ve re-formatted the original article below, with some of my insight added:

Most buyers and sellers understand that buying and selling a home requires negotiation. You give a little here, and they concede a bit there. But what do you do when you have a buyer who demands unnecessary repairs after a home inspection?

Educating buyers so that they better understand which repairs are necessary and which may annoy the seller enough for the deal to shatter is part of the job of a real estate agent. Here is a list of seven repair requests that buyers should think twice about before making.

1. Easily repaired items under $10

Whole-house inspectors often come back with a list of items that cost under $10 to repair or replace. Save yourself the hassle, and omit these things from the list of requested repairs. If repairs are not related to a safety issue or the breakdown of an expensive system, it’s better to refrain from listing them, if you are asking for a credit, than take them into account by rounding up.

2. Replacement of smoke and carbon monoxide detectors

Sometimes buyers are adamant they want missing smoke detectors or carbon monoxide detectors replaced. Although these are safety items, unless local codes say differently, it is better if the buyer installs the smoke and carbon monoxide indicators after closing. That way, they can make an informed decision on the type of alarms they feel most comfortable using in their new home. Fortunately, in our area, they are required by law to be installed and should be done prior to an appraiser coming out as they have to take pictures of them. If they are not there, the lender will not fund the loan until they have been installed and the appraiser has a picture to confirm.

3. Cosmetic issues in a resale home

Unless the home is brand-new construction, advising your clients against noting uneven paint or stained baseboards on a repair request is a good idea. Normal wear and tear should be expected in any resale home and should be a factor in the original price negotiations.  Homes are usually priced for condition and similar homes that have recently sold. Most buyers want a home that is move-in ready, thus why remodeled homes tend to sell at a premium.

4. Repairs related to minor plumbing and electrical issues

Often, a whole-home inspector will list in the report issues with simple electrical and plumbing items such as an upside down outlet, or corrosion on a fitting. Unless the problems cited are a safety concern, a buyer should not list them as a requested repair. Simple issues such as an upside down outlet or a corroded water line to a sink are simple DIY repairs or matters easily handled by a handyman.  Outlets that are not GFI’s tend to be common issue in our area. An outlet by water should be GFI – that is a health and safety issue, but for the rest of the outlets – especially if the house is 40 years or older – will not have GFIs, and the cost is about $350.

5. Repair of hairline cracks in the basement or driveway

Concrete expands and contracts naturally, and over time, cracks will occur. As long as the cracks are minor, don’t list them in a request for repairs. However, if the breaks are over a quarter inch, it’s an excellent idea to have a structural inspection. Structural cracks are a whole new ballgame.

6. Outdoor landscaping, porch and fence repairs

These items were visible at the initial showing and will be a factor in the initial offer and negotiations. It’s not a good idea to ask for things that were obvious at the beginning such as sod replacement, fence restoration, loose railings or loose hinges. The exception is if the repair is necessary as part of the loan process such as in an FHA, VA or USDA loan.

7. Replacement of failed seals in windows

Unless the window is under warranty, most sellers will refuse to fix a failed seal. Window seals fail over time with use, and depending on the age of the window seal, failure can be expected. It’s another simple fix, and sometimes you need to choose your battles.

For all items on this list that your buyer would like to have fixed and are not safety or related to the failure of an expensive system can be included in a request for credit at closing. Sellers are more likely to agree to a $300 credit for the buyer to replace 30 $10 items than they will to repair or replace the 30 issues themselves.

Is there a recession coming in 2020?

Is there a recession coming in 2020 or sooner? And if so, what does that mean for the real estate industry? Additionally, how do Chinese buyers affect California real estate? Jay Vorhees of JVM Lending (with a little help from The National Real Estate Post) has you covered:

The National Real Estate Post had a great video today with information I thought was well worth sharing. Marketing commentator Barry Habib discusses margin compression, the coming 2020 recession, why he is bullish on real estate even if a recession hits, and why Chinese buyers influence California real estate so much.

RECESSION IN 2020 – WHY?

Mr. Habib agrees with other prognosticators I have cited in previous blogs and illuminates two reasons why a recession is likely in 2020:

  1. Short-term rates are almost the same as long-term rates. I won’t explain the economics, but I will say we are at this stage in the interest rate cycle now; and
  2. Unemployment has likely bottomed out and will only increase at this point.

BULLISH ON REAL ESTATE EVEN IN RECESSION

Mr. Habib remains very bullish on real estate – even if a recession hits. He thinks a 10% correction is very unlikely for several reasons:

    1. It is different this time for reasons we have explained in previous blogs – tighter lending guidelines, more structural housing demand, etc.
    2. Rates come down during recessions and that props up real estate prices; and
    3. According to Mr. Habib, if you look at data from the last six recessions (other than the 2008 meltdown) you will see that real estate prices usually do not decrease significantly.

CA PRICES HURT BY CHINESE BUYERS PULLING OUT

15% of the money spent on real estate transactions in California is from China. But b/c China’s currency is now so much weaker than it was relative to the U.S. dollar, Chinese buyers are now sitting on the sidelines. This drop off in demand is already affecting prices, particularly on the high end. But, according to Mr. Habib, this too will end and Chinese demand will return.

I hope this helped you learn a little something about the impending recession, how it affects real estate, and why Chinese buyers may affect the market long-term!

Now, with a little input from us:

Comments from Bob Schwab – Inverted Yield Curve

Our in-house lender has remarked that one of the indicators a recession may be on the horizon is an inverted yield curve. I asked what that means, and here was his response (note any errors are mine via translation):

“The U.S. runs a deficit, and in order to pay on the deficit, they sell treasury notes and pay interest to the purchaser. Normally, the longer the you take the note, the higher the rate or return; [in the] shorter term, the lower the rate the government will pay you. When the short-term notes have a higher rate than the long-term is when we have an inverted yield curve. That margin has been steadily decreasing, and we have been about 30 points away from an inverted yield curve, and thus why the buzz of a correction is coursing through the media. I am seeing a different effect; in June we had a wave of listings come on the market, when it usually quiets a bit due to summer vacations. I believe sellers are thinking prices might have reached a peak and now is the time to get their home on the market, which means we now have more inventory and more for buyers to choose from. The outcome is price reductions, things sitting longer, etc., because buyers now are thinking they will have a wait-and-see strategy!”

CoreLogic’s State of the Nation’s Housing 2018

Bob Schwab shared CoreLogic’s State of the Nation’s Housing 2018 report recently, and I wanted to pass that information along to you. This is the 30th anniversary of the report, which features CoreLogic’s home price and rent growth information. This year’s report article was authored by Molly Boesel, and you can see it in its entirety below:

From the State of the Nation’s Housing 2018 Report

The State of the Nation’s Housing 2018

On June 19, the Joint Center for Housing Studies of Harvard University released their 30th anniversary edition of the State of the Nation’s Housing report. The 2018 report highlighted some major themes including lack of housing supply, rising home prices and rents, and housing affordability.

The U.S. housing market continues to be plagued by a lack of supply of homes for sale. Months of supply available for sale is a key measure of housing supply, and is at levels that are below where they would be for the housing market to be balanced. The Harvard report points out that negative equity as reported by CoreLogic no longer appears to be a drag on sales. Negative equity shrank from 12.1 million mortgages in 2011 to 2.5 million in 2017. Rather, a factor in the low housing supply is slow growth in single-family construction that has not kept up with demand.

Low housing supply has contributed to increases in home prices. Home prices, according to the CoreLogic HPI were up by 5.9 percent for all of 2017. Prices for the lowest-cost homes (those homes priced at 75 percent or less than median) were up by 8.5 percent, compared with 4.7 percent for the highest-cost homes (those homes priced at 125 percent or more than median). Along with home price increases, there have also been increases in rents. The report highlights the CoreLogic Single-Family Rental Index (SFRI). While the SFRI is still showing increases in rent through the beginning of 2018, there has been a deceleration in the rate of increase.

Living in the Bay Area, we know the increases in home prices and rents have outpaced increase in incomes and have contributed to affordability problems. High prices and low supply constrain access to homeownership, but affordability issues are more immediate for some households. The CoreLogic SFRI shows that the lowest-cost rentals are showing the fastest rent growth, adding to affordability challenges to low-and-moderate income households. The Joint Center reports that in 2016, 38.1 million households were cost-burdened, meaning they spent more than 30 percent of their incomes on housing. While this number was down by 800,000 from 2015, it is still 6.5 million higher than it was in 2001.

I also believe the low supply in California has multiple factors.  People are not moving up, but remodeling because they don’t know where they would move. Seniors also have the same problem and if they stay in California, some counties will not accept their current tax base and they often have to sell in order to buy.  It is a domino effect.

I’ve included the graph above for context, and have the entire PDF report available if you’d like to see it. For any housing-specific questions, shoot me a note!

10 items every home should have

Thanks to John Solaegui, who sourced this article from Architectural Digest, about 10 items every home should have. It basically is a list of must-have home items that you never knew you needed; the little things you forget about when moving into a new home. I think this is a spot-on look at what every home should have, with a little bit of added input from yours truly! Let me know if there’s anything we missed.

Image result for wall art map

1. Art that you love

Bare walls are boring. I’m not saying you need to go all JoAnna Gaines on your interior decorating, but finding some art that you love, that has meaning to you, is a huge plus in a new home. Personal photographs, postcards, custom-framed prints, etc. make for great decoration and tell the story of you!

2. Guest linens

This one might make you laugh, but it’s easy to overlook! If you’re planning on having guests over, you shouldn’t have to pull out a sleeping bag or ratty blankets. These people aren’t at summer camp! Stash a few extra sets of sheets and extra towels in a linen closet so you’re ready to host.

3. Entry table

It never hurts to have an aesthetically-pleasing piece of furniture right inside your front door. But it’s also multi-functional: mail, keys, sunglasses, and other necessities you are always misplacing would go neatly into a bowl, tray or box on an entry table.

4. Table linens

There’s nothing like freshly-pressed linens, but you don’t have to overdo it. A bare, white table set with white linen placemats can create a fresh, airy vibe. If you want an eco-friendly bonus, you can get linen sets that are better than paper, too.

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5. Plants

Bring a touch of nature indoors! Houseplants add color and texture to a home. If you are a chef (or pretending to be one), you can also plant some basil, thyme, or other spices inside to create a decorate herb garden. Another pro tip: apparently having a mint plant inside keeps insects on the right side of the walls (outside!).

6. Multiple lighting sources

We do a lot of things in our homes throughout the day. It’s only fitting that we have different lighting options available for sleeping, entertaining, and just relaxing. A single overhead system doesn’t really cut it anymore. Add at least one table, floor, or desk lamp to every room in your home to elevate the mood!

7. A coat rack

You don’t live in the dorms anymore, so tossing your coat on the nearest surface when you walk in is no longer acceptable. If you have a full mudroom, you’re set. If not, a back-of-door coat rack, or even just a section of the nearest closet, can function as a de-cluttering coat rack.

8. A bookshelf

If you can get a vintage cabinet, or utilize built-in shelves for this, you are a true professional. But every home should have some sort of chic shelving set-up to store your favorite books, framed photos, and other meaningful trinkets. You can organize the things on the shelves however you want, and change it often!

Image result for blanket on couch

9. A sumptuous throw

Toss a nice-looking throw over the end of a bed or across the back of a sofa. Not only will it make the room prettier, but it will imply that your room is cozy and welcoming. You can go as colorful as you want, or match the throw to the mood of the room.

10. Matching wine glasses

Don’t be that person. The one who scrambles through three different cabinets just to come up with a bunch of different wine glasses to serve the bottle your guests brought over. Invest in a quality, matching set of wine glasses, and upgrade your happy hour game. Brownie points for having a dedicated wine rack piece in your home.

What does a real estate agent do all day?

Being a real estate agent is a tough job. We work constantly, even on weekends, holidays and evenings, and have to balance about one million different tasks for a given sale. On top of that, we’re monitoring leads, following up with clients, and having to market ourselves regularly. But most of that is below the surface, so it leaves some wondering what the heck we actually do all day!

Luckily, Cara Ameer, a realtor in Florida, explained it in detail for Inman.com. I’ve given you the main takeaways from that article below, to shed a little light on what exactly I’m doing for you and my other clients all day:

The realtor is an incubator, initiator, action-taker, coordinator, scheduler, personal concierge, resource, problem-solver, mediator, miracle worker, red-tape cutter, transaction manager, and chief make-it-happen officer for any client that wants to make a real estate move. Some of these roles get delegated elsewhere, but the realtor oversees everything and gives valuable input on the process every step of the way.  I could work every day, and often feel guilty if I am going to be out of town or take a day off (even on my scheduled days off). I usually will check email a couple of times and answer my phone which is also the beauty of it all – I can be on a beach in Hawaii and still answer questions and get things done.

A typical day in the life:

  • Responding: there are always inquiries, emails, texts, etc. to respond to. We are always “open,” if you will, and waiting until the next day can result in a missed sale or lost client. And it’s not just clients asking about properties – it’s other agents, stagers, brokers, and more.
  • Reviewing MLS activity: we review MLS activity for relevant listings and updates on properties of interest and notify our clients right away if anything needs to be shared.
  • Keeping a Database: we must always be updating our contact databases with new customer info, updates, birthdays, home-buying anniversaries, etc.
  • Scheduling Showings: agents put together property itineraries for clients who are planning to house-hunt and see multiple showings. The schedule is constantly changing, and getting it right is a priority for everyone.
  • Making Contact: we are your liaison for establishing a dialogue with sellers or buyers, and conduct all the research for market comparables.
  • Setting/Attending Appointments: meetings never end in real estate. We meet buyers and sellers for initial discussions and tours, we meet inspectors, appraisers and other specialists, and oftentimes you’ll get other calls about other meetings while you’re already in the first one!
  • Negotiating Offers/Managing Sales: this process can take a very long time. Once an offer is accepted, though, and a property goes under contract, the agent has to be on everyone involved to finish their part of the job. That means lenders, title companies, attorneys, other agents, and all clients, to name a few.
  • Problem-Solving: educating clients about the market, the offers, etc., gathering info about a community or property, troubleshooting unseen issues. There are a million little issues that go into a real estate transaction, and the agent will be expected to be the one solving them.
  • Marketing: don’t forget how much we have to market ourselves at all times to gain new clients and keep existing ones. Everything from a website, to a blog, to a newsletter, to a postcard, to a flyer will have to be created, approved, proofread and spread digitally and physically.
Courtesy: Inman.com

Long story short, real estate is a 24/7 profession that involves severe multi-tasking, prioritizing, evaluating, advising, hand-holding and problem-solving. The lifestyle isn’t as glamorous as it seems on TV, but it’s a rewarding job that I love to do! Now you know exactly what kind of work I’m putting in for you!

Downtown Walnut Creek updates

This little town of ours is always growing and changing. It seems like every other day, we have a new restaurant popping up in the place of a restaurant that was just formerly new, or an apartment complex taking over an empty lot. Here’s some more news:

Image result for construction

There are some rumors floating around about a couple of Hall Equities Group projects.  The first one is there is Prime Hotel Site noted on their website which looks to be the corner of Ygnacio and Civic that will have a large conference space.  There is nothing noted on the City of Walnut Creeks site, but on Hall Equities site they show a rendering of a hotel. Check it out!  Walnut Creek has not seen a new hotel in many, many years, but note: there is a new hotel, A Marriott’s Residence Inn currently being built on the corner Pringle and California (2050 California) where the Jaguar dealership and Bank of the West used to be.

The second rumor may be a high-end spa and hotel where the KFC used to be on California & Botelho. Hall & Associates has been trying to develop it for a few years, but were trying to push on the height restrictions and no resolution occurred, so we will see if this comes to fruition.

And while some of us had gotten used to going to the food truck village in McDonald’s old site by Xtreme Pizza (it was awesome!!), that will become a condo building with some rentable rooms. Those are popping up all around town, but I think it makes sense given the growth in Walnut Creek. And most builders have been pretty smart about making buildings that won’t be eyesores.

There are some condos by BART (Main and Civic), two new apartment buildings right by BART and Riviera (a little Walnut Creek BART transit village), and a big new complex called The Lofts. This is all going in right by BART, and will increase the traffic even more over there. Surely, we will see more buildings, more condos, and definitely more new restaurants and bars infiltrating Walnut Creek in the coming years. Keep an eye out for these new projects!

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Interest rates and purchasing power

According to Certified Mortgage Consultant Bob Schwab, interest rates you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power. Check out his comments here:
According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 4.61%, which is still near record lows in comparison to recent history! The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power. Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if you planned to purchase a home within the national median price range while keeping your principal and interest payments between $1,850-$1,900 a month. With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.
Jay Vorhees of JVM Lending has a take on higher rates and how they affect qualifying, too:
How Do Higher Rates Affect Qualifying? Potentially A Lot.
RATES ARE GOING UP, REST ASSURED
We’ve said that at least a hundred times over the years but this time it is a reality b/c the Fed is no longer buying bonds to push rates down, and b/c the Fed is very determined to push rates up in general. We saw a slight dip in rates recently largely b/c of economic turmoil in Italy, but rates are expected to climb another 1/2 percent this year alone.
HOW WILL RATE INCREASES AFFECT THE QUALIFICATIONS OF A PRE-APPROVED BORROWER?
Rule of thumb: A 1/2 percent increase in rate will increase a mortgage payment by about $30 for every $100,000 borrowed. Hence, if a buyer is looking at a $600,000 mortgage, her payment will increase by about $180 if rates go up 1/2 percent. In regard to qualifying, an increase in rate could easily shave off $25,000 to $50,000 from a buyer’s maximum.
For example, let’s say “Jeremy” the buyer is pre-approved for a maximum $750,000 purchase with 20% down at a rate of 4.75%. Let’s also assume Jeremy’s maximum payment (Principal, Interest, Taxes, Insurance) is $4,000 and his income is $8,900 per month, giving him a maximum debt ratio of just under 45% (all numbers are rounded). If rates increase 1/2 percent, Jeremy’s maximum qualification would drop to about $715,000 b/c that is the most Jeremy could buy in the higher rate environment without pushing his payment over his $4,000 limit.
In other words, if Jeremy’s rate increases from 4.75% to 5.25%, he will lose about $35,000 of purchasing power. What can poor Jeremy do?
A. Consider an Adjustable Rate Mortgage (ARM). Jeremy can knock as much as 1/2 percent off of his rate by considering a 7/1 ARM. Knowing that very few buyers ever keep their mortgages more than 7 years will help him rest easy with his ARM.
B. Buy now while the getting is good! If Jeremy is hellbent on a 30-year fixed rate loan, he should buy now to lock in today’s rates. BUT – we will still remind Jeremy that even if rates are in the mid-5’s, they are STILL a “gift” by historical standards.
C. Buy a $50 tent and a motorcycle, and skip the house thing. I did that in my early twenties, and it was really fun. Jeremy might want to do the same. But don’t worry, we won’t suggest it. Lastly – should Jeremy worry that higher rates might hurt home prices? According to this blog, no :).
Note:  for those living in a rabbit hole, last week the Feds raised interest rates and stated instead of one more rate hike, it will most likely be two more this year and then 3 more in 2019.

JVM Lending: If appraisal comes in low…

…a buyer is not overpaying! Appraisals and market value can be a tricky math problem for buyers to figure out, but that’s why my friend Jay Vorhees from JVM Lending has put together this handy-dandy blog to explain. Take a look below:

When Appraised Value Does Not Equal Market Value

We have a buyer who was convinced she was “overpaying” for her property because her appraisal came in low. But, there were multiple offers for her property that were very close in price to hers, and there are nearby pending sales that are also similar in price. The entire issue has to do with appraisal guidelines. We repeat this often in this blog because the issue comes up so often: appraised value often does not equal market value.

Image result for house for sale

If there are multiple buyers willing to pay $850,000 for a property in an open market, then that property’s market value is $850,000. But, appraisers cannot appraise properties (in most cases) above the highest closed comparable sale in the neighborhood. So, if there are no closed sales above $800,000, that property will usually not appraise for over $800,000.

But, again, that does not mean the above property is not “worth” $850,000. Once this was explained to our buyer, she was no longer concerned about her low appraisal. This is something every buyer needs to understand in a fast-appreciating market where contract prices are tough to support in an appraisal.

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This is something I deal with constantly with my own clients. Jay hits the nail on the head here: appraisals may come in lower than expected, but it is not equal to a diminishing value on the property. For more helpful information like this, give me a call! I can talk about real estate all day 😉

What can bring down house prices and rates?

What could bring house prices and rates down? According to my friend Jay Vorhees at JVM Lending, it could be something called “monetary tightening,” or an experiment conducted by The Fed to infuse the economy with cash. Basically, what Jay is getting at, is that you’ll never know exactly when to buy or sell (or when a market dictates that decision), and that assuming you know the market intimately trying to time the market may be a mistake. Read on for more from our slightly-edited version of Jay’s blog:

Dude Sells Too Soon!

I was at a graduation party yesterday and the host told me how his law partner sold his Silicon Valley home two years ago because he was convinced the market had peaked.

It hadn’t. The poor guy’s former home has gone up another 20% since he sold, and so has his rent. The host made the further point that people should never try to time a market they are not intimately familiar with.

I like to remind everyone that nobody should ever try to time a market, no matter how much they know, because there are so many variables they have no control over – especially when those variables involve the Fed.

Elephant in Room: Monetary Tightening

There is a huge elephant in the room that nobody is talking about: Massive Monetary Tightening via Higher Rates and Quantitative Tightening.

After the meltdown, the Fed engaged in a massive experiment known as Quantitative Easing, where the Fed bought trillions of dollars of government bonds and mortgage-backed securities. These bond purchases increased the money supply by flooding financial institutions with cash in an effort to increase lending and liquidity. The Fed also lowered the rates to unprecedently low levels.

The low rates and huge capital infusion pushed up asset prices, particularly with respect to stocks, bonds and real estate. This is what usually happens when the Fed increases the money supply, and this is partially why we see such high asset prices now. Many people believe high prices are just a function of too much demand chasing too little supply, but that is not always the case.

Excess demand is often driven by excess capital in an economy; people want to park their capital somewhere, as opposed to letting it sit in bank accounts, so they buy assets. In any case, the Fed created about $4 trillion of new money up through 2016, and in 2017 they reversed the policy! They are now not only pushing up rates but also selling bonds with the intention of vacuuming about $2 trillion out of the economy.

This will likely have an adverse effect on asset and housing prices at some point. Do I think real estate prices will tank? No. I still like real estate because the fundamentals are so strong in many areas. But, I don’t think we’ll continue to see such strong appreciation, and now might be a good time for Silicon Valley lawyers to sell their homes.

Fed Could Reverse Again

Nobody is more aware of this than the Fed, and they are watching closely. If Fed policymakers see the economy showing excessive signs of softening, they could very likely change course again – and lower rates. Again, nobody knows what will happen because we have never seen anything like this before! We are in the midst of one giant experiment, and we all get to be the lab rats.

The Cost of Waiting

I generally encourage all my clients to be patient in the home-buying process. You’re looking for your dream home, and a house to call your home where memories are created. You want to exercise patience and really find the right place. However, at some point, waiting too long or sitting on the fence can have consequences.

As you’ll see in the blog from my friend Jay Vorhees at JVM Lending below, waiting too long on a home purchase can be costly. He highlights one particluar (anonymous) client who kept quibbling over small price differences and that stubbornness led to her not only missing out on her dream home, but settling for an entirely different town. To add insult to injury, the home she wanted has doubled in value since!

Read on to learn more:

COST OF WAITING IN 2012

In 2012 and 2013, we had a borrower looking to buy in Oakland and she was obsessed with getting the absolute lowest possible price.

As a result, she kept walking away from transactions, b/c of $5,000 to $10,000 price discrepancies, even though she was shopping in the $650,000 range in what was becoming the hottest market in the country.

The $10,000 differences she quibbled over worked out to be less than $50 per month in payment. What is most interesting is that she waited so long that she was ultimately unable to buy in her desired Rockridge neighborhood altogether, and she ended up buying in a suburb east of Oakland.

The houses she was bidding on are now worth twice what she was offering too. Her “cost of waiting,” or cost of not executing, was extremely high, to say the least. Unfortunately, her story is not unique.

RATES HIT 7 YEAR HIGH

According to this CNBC Report, “interest rates are surging to their highest level in seven years.”

And, it looks like they are going to continue to climb, based on continued strong economic reports and announcements by the Fed.

Despite the rate increases, the demand for housing remains very strong. In addition, property values continue to appreciate at a surprisingly fast pace.

COST OF WAITING IN 2018

These factors (increasing rates and appreciation) combined make the “cost of waiting” as high as ever.

In a recent National Real Estate Post Video, at about the 9-minute mark, Barry Habib uses a $500,000 Orange County purchase as an example.

At current appreciation rates, waiting even six months can cost a buyer an additional $200 per month, according to Mr. Habib.

Waiting a year can cost over $400 per month.