In any real estate market, real estate buyers are concerned with how much their new investment will cost them.  Some buyer fail to look past purchase price and necessary renovations.  More savvy buyer bolster their negotiating position by considering a broader range of ongoing costs of ownership, including property taxes, insurance, maintenance costs, and mortgage interest rate, among other things.  This more inclusive approach to evaluating monthly cost of a property allows a buyer to understand that in some circumstance, the actual purchase price is not as significant in effect as the interest rates when purchasing a property.
The good news for buyers and sellers in today’s market is that mortgage rates have remained low.  In 2011,  a standard 30-year fixed rate mortgage was  rarely over 5% and in the last nine weeks of the year, rates for standard, 30-year fixed mortgages have been at no more than 4% (but often lower).
If you’d like more information about how to establish your purchasing power in today’s market or identifying properties that might be coming on the market in the next few months so that you can take advantage of the current low rates, contact Leaf, Realtors® at 908-975-9756.