The Difference Between Cost and Price

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Is there a difference between cost and price? As a home seller, you should be concerned about the short-term price of your home. Where are home values heading over the next six months? Will the current interest rates or rising interest rates help or hurt your home's value?

You should also consider the absorption rate. Keeping the pulse of the market helps give you an idea of the price of your home. According to the National Association of Realtors, an absorption rate of 6 months is a balanced market. Anything over six months is considered a buyer's market and anything under six months is a seller's market.

Since the price of your home is a function of supply and demand, it's important to know what's happening with the market. Work with a real estate agent who knows the market inside and out, and you'll get the best price for your home.

 As a buyer, you should pay attention to the cost of your home. What will your monthly payments be? What about taxes, home insurance, and electric bills? These are continuous expenses, and you need to make sure your home is efficient. Working with an agent will help you save tens of thousands of dollars down the line.

Buyers should also keep an eye on interest rates as rates directly impact your monthly payments. If interest rates go up, so will your monthly payments.

If you have any questions about today's video, give us a call or send us an email. We would be happy to help you!