Center City Homes Blog

Cost Savings Comparison

Although this “cost comparison” will apply to any type of home, new or old, let’s assume you are buying a new construction home in the heart of Bella Vista Philadelphia; if you are savvy money person and analytical when it comes to your finances you will not only understand the importance of buying at the low point in the market but how it pertains to you in a monetary sense.  Let’s make this simple…..interest rates play a huge role in money owed on your note throughout your 30 year mortgage.  For example see chart below:

Price     /       Mortgage   /   1% Interest Savings – 8 Years  /  2% Price Depreciation

$249,750       $200,000          $11,520                                                          $4,995
$375,000       $300,000          $17,088                                                         $7,500
$500,000       $400,000          $22,752                                                        $10,000

Zach Skidmore
www.CenterCityHomes.com / 215.901.7844
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106

Center City Philadelphia Real Estate

When is the right time to buy?  I don’t mean now or next month but actually Spring, Summer, Fall or Winter?  Most cities in the United States have seasonal real estate markets but even more so here in Philadelphia.  By purchasing a home in certain times of the year, you could actually pay more or less than the norm. The Philadelphia Real Estate Market has a big surge of buyers during the spring market and this drives demand for certain types of properties, even in a down market.  By coming out of the woodwork along with the other thousands of buyers in the spring, you might actually be putting yourself at a disadvantage.  There is more competition and you bet your a$$  that the agent the seller’s are using is telling them this.  In my OPINION the best time to list a house for sale is late Februrary or March 1.  This is usually when we see a big jump in ”buying traffic.”  On the other hand, the best time to buy is coming up on the dead of winter.  Use caution because if there is a certain property that you like in the spring, I wouldn’t advise waiting until the snow starts, this could result in you losing that home to another buyer.  BUT, if you are just starting your search then I advise the fall as the best time.  This way your agent can show you what’s on the market and with winter around the corner a lot of the seller’s get anxious and want to sell instead of having their property sit on the market through the winter.  Obviously real estate continues through the winter but it’s no secret that it slows down and this might play to your advantage when it comes time to make an offer.  Shopping for a house in the winter can be a good thing but also could be a double edge sword; I say this because most seller’s in Philadelphia know this fact and will decide to hold out on listing their house until Spring approaches.  So you as a buyer might not have the type of inventory expected in the Spring.  This is just some input I thought all buyer’s and seller’s should know although I’m sure you already know!

Zach Skidmore
www.CenterCityHomes.com / 215.901.7844
Prudential Fox and
Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106