Cost Of Waiting
Buying Now Builds More Wealth Than Waiting
"Time in the market beats trying to time the market."
Why it matters
- Waiting for “perfect” conditions usually backfires.
- Even buyers at the 2006 peak are $169K wealthier today than renters.
- Renters who waited in 2014 and 2019 missed out on six-figure gains.
- Waiting for lower rates, lower prices, or more savings rarely results in payments being reduced by more than $50–$80/month.
The Smarter Move
- Buy when you’re ready.
- Use tools like rate buydowns and seller credits to make the payment affordable today.
- Focus on long-term wealth; time in the market beats timing the market.
Real example
- $875K home, 20% down.
- Market rate (7%) = $5,744/month.
- With seller buydown to 5.99% = $5,278/month.
- Savings: $465/month — fixed for the life of the loan.
Bottom line
Every month you wait is a month of equity lost.
Start your path into homeownership today — and let’s build a plan that works for you.
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Full Video Transcript
Time In The Market Numbers -
0:00 So hopefully this article and this information I kind of put together, uhm, helps you realize that timing in the market is not important versus time in the market.
0:11 So with that, you're probably saying, okay, I understand that, Scott, but we're trying to get in and we're trying to think of ways to get in to create affordability so we can start that home ownership.
0:21 And so I'm going to break this down into a story so it's better learned or or or makes more sense to you on a couple that's trying to do the same thing of getting into marketing.
0:30 Into home ownership and the ways that they're trying to without success and the way I'm going to show you and how you get in today's market.
0:39 So the first column is I have these five columns up, so the first column is the house they're looking at.
0:45 They're looking at a house at 875 in this in this situation. They're going to put 20% down and this works with different down payments and different loans.
0:53 Just FYI, the current market. Let's just say today is at 7% and that's going to yield an all in payment of 5744.
1:00 more. And so that's what they're looking at, and so they're going to wait in particular, going to wait because they want that payment a little bit more affordable and that's stretching him too much, which is a lot of problems in today's market.
1:14 Is this affordability so a couple ways they're looking at? This is in the second column. They're going to wait for rates to drop in which we just went through that a month and a half ago or a month ago and rates did drop.
1:27 They actually moved down into the very low sixes. Let's call it six and a quarter. And when it did that, the problem is it brought in more people, so prices moved up a little bit.
1:37 So now we're at eight or nine and a quarter. Excuse me, more offers, more competition, because the rates are have dropped and it creates more affordability, but not realizing what it does.
1:47 It offsets the savings. So we only saved with the drop in rates and a slight increase in price. We only say $49, so that was a futile attempt.
1:58 Another thing that a lot of customers or in this client was doing, let's wait for prices to drop. And if prices are going to drop, that means rates will either stay the same or slightly tick up where the sellers are saying, you know what, let's just go ahead and drop price.
2:11 And that's what you were looking for. So that house, which was 875 moved to 850 and that slight tick in rates, it's going to yield the same payment of $56.95 or save you $49.
2:24 So the summary here is waiting for the rates to drop and brings in competition and saves us $49. dollars. Rating for the prices to drop means rates will stay put or slightly move up and it'll save us $49.
2:37 So really that didn't solve anything to get us in the market. The last thing when I see a lot of customers and this one was trying to do is we'll just save more money.
2:46 So let's take a year off of the market. Let's say 47,000 more dollars. Go back to the house over a year that house appreciated at 4%.
2:56 So now the house is 910. They saved the 47,000. and let's say rates may. Maintained we now have a new payment because of the bigger down payment of 564 or 5664, which is $80.
3:10 But look at the cash to close jumped up substantially now to 47,000 more or 243 did we really get in today's market and really make an impact on affordability by waiting for drop in rates drop in price and or save more money.
3:25 Not really last column is how we do it and I'll just go on a high level. we go into the market we get into that house now we negotiate offer to the seller and we're going to do what's called a seller buydown.
3:37 This is a particular permit rate buydown. We're going to offer. I would step in as your lender at 875 structure the offer in the contract and here in the bank at 599 and a 30 year fix and this is not a temporary.
3:50 It's a permit rate buydown means it's fixed for the life of the loan. Not only do we use that for safety, but also for qualification temporary buydowns don't help with with.
4:01 Which means lower tax or income or tax returns to qualify. We move the payment all the way down to 5278, which is saving 465.
4:12 So that's how we enter the market to make affordable and then we start that time in the market for you and build wealth.
4:21 I also put another video below that you can get into and they call it the perfect offer and how we'd actual structure it to the seller.
4:29 protect the offer through an investment. And building your buyer compensation. Any questions? Let's sit down and figure out a game plan based on your down payment, the loan product and get you into the housing market and start that time in market.
4:42 Thank you and take care.
Time In The Market Breakdown -
0:01 You're a buyer in today's market, and you're sitting on the sidelines, and I understand that. Hey Scott, we've gone to the sidelines to wait for rates to drop to create more affordability.
0:10 Or we've gone to the sidelines to wait for prices to drop. So maybe we can create some affordability. Or you've gone to the sidelines to say, hey, I'm going to save more of a down payment to create more affordability.
0:22 So this presentation, my goal is twofold. Number one, I want to show you, I want to highlight a really good story that was, uh, or blog that was put out by First American title.
0:33 And they did a study in what it's showing and I'll summarize it and hence my title here. It's better to have time in the market than you as a buyer trying to time the markets.
0:45 And what they've shown, there's three different time periods. They showed buyers coming into the market. The buyer number one in this study, which I put to the side here, is the buyer that came in the height of the market in 2006 went through the whole recession and came back out, what they've done as
1:02 far as equity gained versus rent paid. Number two, the buyer that came in 10 years ago as the market's recuperating jumped in, the amount of equity gained versus rent.
1:15 And then lastly, the buyer who just came in during the pandemic and what they have gained in equity and wealth versus rent spent.
1:24 And so I want to add to that article. So my goal as a financial advisor or mortgage advisor, I should say is to help you create a plan, how we can one, create affordability to how we can help get by our agent compensation.
1:38 And I think it's important to have representation in today's market with NAR. And then lastly, how we write that competitive offer for a seller.
1:46 And so I'm going to break all that down. And I think one of the things also I want to add some numbers to it.
1:52 Numbers in particular in the first not a presentation I showed you is by trying to time the rates in this in this example I put together you save $48 for a three-quarter rate drop in the second example you waited for prices to drop but you only save $48 again in that example and then lastly how you saved
2:18 more money it took you a year to gain 47,000 more of a down payment. And all you save was $80 per month, but you lost out in that appreciation over that time.
2:31 And so I want to show you how I can get you in the market, create affordability, get buyer representation, and protect that offer when we're writing it to the seller.
2:40 And so this is going to be a unique situation. Everyone's going to be a little different. This could be a different loan, could be a different down could be a different market and so on so forth.
2:48 This works for a lot of different people to help them get in the game to create the time in the wealth versus trying to time the market or when to jump in.