Carpe Housem: Seize the House!

Saving money is more popular now than ever. It’s fun to hear about a great buy on a killer wine, or a steal of a price on a pair of shoes. And of course, there some great deals to be found when buying a new home. But what if the deals disappear?

That’s right! There’s a ground swell of noise that the market is beginning to heal and that prices have perhaps found the floor. Many great deals that were on the market just last month are now sold to happy new homeowners who were wise enough to take the plunge and purchase.Forget about seizing the day! Now’s the time to seize the house!

So what should one consider before taking the plunge? You might start with real costs and risks. When you buy a printer you need to consider the cost of ink. When you buy a car you need to consider the cost of gasoline. And when you buy a home, you need to consider the cost of energy and maintenance. Not all homes are created equal. New homes are built to a higher energy standard and therefore consume less energy, saving you money and saving on the use of our precious resources. The same size older home could cost you several hundred of dollars more each month in energy costs! Another factor that is seldom fully considered is the cost to maintain your home. New homes have a step up on older homes regarding maintenance costs. According to Housemasters, a home between 13-29 years of age has a 49% chance of having roof problems, a 50% chance of heating system failure and a 30% chance of suffering from electrical problems. With odds like that a newer home is the safer bet!   There’s never been a more affordable time to make that bet.Currently there are still a large number of new homes on the market and rates help make these homes even more affordable. Seldom in history has there been a housing market with great prices AND great rates. Smart buyers will realize this combination can’t last long. The interest rate has a significant impact on how much house one can buy and these great lower rates should not be taken for granted.For example purposes only, let’s say that a couple’s combined monthly household income is $10,000. Assuming the APR’s (Annual Percentage Rates) in the chart below and a traditional mortgage, the borrowers would qualify as follows:

  For many borrowers waiting for “bottom” could end up costing thousands of dollars in qualifying power if rates rise even one percent. The combination of great value and great interest rates coupled with the energy efficiency and maintenance savings on a new home now is the perfect time for buyers to make their move.Seize the day by seizing a new home with a great interest rate before it’s too late.   Dave Porter is a a national speaker, trainer, consultant and writer on sustainable solutions for businesses, focusing on: management, marketing, sales, finance and general business best practices. Contact him at 206 304 8228 or davep@porterworks.com. Visit www.porterworks.com