Ricky Khamis's Blog: The Cost Of Waiting


The Cost Of Waiting

With so many buyers sitting on the fence waiting for that perfect moment I thought it prudent to showcase what the cost of waiting really looks like.

Let's say for instance that you are in a $200,000 price range looking at homes that cost TODAY $200,000.

With prices on the way up we can assume a 10 - 12 percent appreciation over the next year in some areas, and even more in other.

1 year from now that home THE SAME ONE will cost you $220,000, or $20,000 more dollars!

Now let's talk interest rate.  Let's say TODAY that interest rate is 4.25% on a conventional loan with 20% down, where your loan is $160,000 and your APR is 4.363% the payment would be $960.43

1 year from now that same rate may be 5.25% with an APR of 5.374 due to the QE Being scaled back or even completely over.  

Now that you have to finance $16,000 more due to the increase in the market and the higher interest rate your payment jumps to $1,162.55 or a total difference of $202.12 per month plus $4,133.28 more out of pocket for a total of:


Your best bet for you, your family and your future is to get going now on the approval process, let me and my team help you get qualified right away and save you 10s of thousands of dollars potentially.




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Ricky Khamis
NMLS 173141 | LO-0911814 | CA-DOC173141
Branch Manager | Corporate Office
Arizona and California CE Instructor

Email: Rick@amerifirst.us

480-344-1900 office
602-758-7425 mobile
480-339-1615 fax

NMLS 145368 

1550 E. McKellips Rd, Suite 117
Mesa, AZ 85203


Amerifirst Financial Disclosure-  The opinions expressed here are the personal opinions of Ricky Khamis.  Content published here is not read or approved by Amerifirst Financial before it is posted and does not necessarily  represent the views and opinions of Amerifirst Financial.

Comment balloon 34 commentsRicky Khamis • April 11 2014 01:39PM


They  will never learn, look at black friday to see what people will wait for

Posted by Charles Stallions, 800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl. (Charles Stallions Real Estate Services ) about 6 years ago

I agree with your article and how it costs fence sitters in the long run.  But these are the same types of buyers that will pay $3.99 for 8 oz. of shredded cheese in the package, rather than $4.99 for a pound of cheese because it's "cheaper" and already shredded.  HA HA HA.  Penny wise and pound foolish!  

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) about 6 years ago

Fear is still a greater motivator than rationality. Look at our government:)

Posted by Jeffrey Hogue, Berks County Real Estate Pro (Weichert Realtors Neighborhood One) about 6 years ago

Not to mention by waiting that extra year the buyers miss out on that $20 of appreciation in your scenario.

Posted by Bruce Swedal, Denver Real Estate about 6 years ago

Ricky, this is so true and many buyers just ignore this fact! Waiting is EXPENSIVE!

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) about 6 years ago

I think this is a great post and one which I will share with the fence sitters I know.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) about 6 years ago

Ricky, that is so true, the cost of waiting would truly shock these fence sitters!

Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) about 6 years ago

That's what we keep trying to make them understand.

One of my investors found out this month...

In Feb 2013, he purchased a vacant lot in Port St Lucie FL for $8800 and this month he had a chance to purchase the one directly across from him only this one is $18,000 or 110% higher than a year earlier. 

Posted by Florida Tolbert Team Keller Williams Advantage, Keller Williams Land Luxury Division Specialist (Keller Williams Advantage III Realty in Lake Nona) about 6 years ago

With interest rates surely to rise, your post makes good points for not waiting to buy.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) about 6 years ago

I guess my wish list includes a 3-5 increase in property value. 10% a year will quickly price people out of the market. Interest rates same way. Yes they are low but they need to be low.

Posted by Bill Reddington, Destin Florida Real Estate (Re/max By The Sea) about 6 years ago

I know many "fence sitters" that just want to wait six months to a year, and don't feel any pressure to make a move right now. These are great reminders that now very well could be a much better time to move!

Posted by Christi Hacker, Your Omaha Area Real Estate Specialist (Realty ONE Group Sterling) about 6 years ago
The price of catastrophe far too great to wait. Have some solid foundation, both physically and metaphorically
Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) about 6 years ago

The numbers are compelling.  It's a no brainer for those of us in the business but sometimes it's just hard to get folks to pull the trigger.

Posted by Chris Griffith, Bonita Springs Listing Agent (Downing-Frye Realty, Bonita Springs, FL) about 6 years ago

Ricky - Yes, those looking to buy now/soon (or trade up) will be able to get more home for less if they buy very soon.  Waiting has a double cost.

Posted by Debbie Gartner, The Flooring Girl & Blog Stylist -Dynamo Marketers (The Flooring Girl) about 6 years ago

I think you're right Ricky.  The time to buy is now.  Of course we'll be saying the same thing in a year when interest rates and home prices are a little higher...  but it's all relative.  

Posted by Amanda Christiansen, Christiansen Group Realty (Christiansen Group Realty (260)704-0843) about 6 years ago

Ricky, they always say the best time to buy a home was yesterday.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA about 6 years ago

I was discussing this with a broker yesterday who was telling me about some people he met who were going to save for another year to buy a home!  He used this very reasoning and they are putting an offer in on a home today!

Posted by Marshall Enterprises, Antiques, Lawn Care, and Trashouts (Marshall Enterprises ) about 6 years ago

I was SCREAMING this when rates touched 3.5% telling the Fence Sitters "you'll never see an opportunity like this again" well here we are a point higher! 

We as a group just need to help educate and use statistical data to help them see why that green wall in the kitchen is ok or the "Shag me" carpet in the living room. 

Posted by Ricky Khamis, NMLS 173141 | CADOC 173141 - 480-339-1565 (Amerifirst Financial, Inc. (NMLS #145368)) about 6 years ago

Your math holds...your point is clear and the time is now...good post

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) about 6 years ago

There is never a wrong time to buy when the right priced property in spiffy conditon that just fits, works comes along. Real estate is not controled by red and green traffic lights and electric eyes. Because life does not stop. The World keeps spinning, tilting, revolving. Start owning doing the best you can in your local real estate market. It is not good or bad because there is always a market. Save, get ready, pounce.

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) about 6 years ago

The illustration makes sense. SO why do people not act now instead of waiting.  If the circumstances allow one to purchase a home delay can be costly.

Posted by Gary L. Waters Broker Associate, Bucci Realty, Fifteen Years Experience in Brevard County (Bucci Realty, Inc.) about 6 years ago

I gave this speech to a buyer last summer.  8 months had passed and we'd looked at over 20 properties in a very small area where listings that fit his criteria were rare. Lost out on 3 houses already because he wanted to 'think about it' for a few days.

I always say - the house is yours until you let someone else buy it.  I explained how looking for a spot-perfect house had already cost him over $20,000, 200sf of house, a garage, or recent upgrades.

Posted by Richard Arnold, Realtor - Tempe, Chandler, Mesa, Gilbert, Phoenix (Keller Williams Realty East Valley) about 6 years ago

Hi Ricky:  This is being echoed all over.  I just spoke to a broker in my office that was saying the exact same thing.  You've spelled it out very well in your post though, with a very direct approach!

Posted by Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula, Realty Works Temecula (Realty Works Temecula) about 6 years ago

And yet there are those buyers who think waiting will allow them to buy when the next “bubble” bursts.


We call those people “renters”.


Posted by John Juarez, ePRO, SRES, GRI, PMN (The Medford Real Estate Team) about 6 years ago

For sure, as rates go and home prices go up it won't be cheaper to purchase a home. And the difference in cost over a long term is staggering as your figure so clearly shows.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Realty) about 6 years ago

We have a couple of buyers just waiting for the right time.  Market timing is a bad idea.

Posted by Geoff ONeill (John L. Scott Medford) about 6 years ago

I have an Excel spreadsheet to calculate the cost of waiting. Sometimes buyers just think we are trying to get a quicker commission so when you can show the metrics of waiting it takes on new meaning when you tell them not to snooze.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) about 6 years ago

Ricky, I imagine there are some buyers who are wishing they had bought last year!  :-)

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) about 6 years ago

I have buyers who are ready, willing and able, but there is NO inventory.  It is so frustrating for them.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) about 6 years ago

Nothing makes the point better than actual numbers in an example.

Posted by Jill Sackler, LI South Shore Real Estate - Broker Associate (Charles Rutenberg Realty Inc. 516-575-7500) about 6 years ago

When you hear the same words and see the same numbers ~ it is not the same.

I wish my lender gave me the spreadsheet Joe( #28) uses, I'd send it to all my buyers.

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Calabasas CA (Barcode Properties) about 6 years ago

 Don't wait to rebuild your Sandcastle on a solid foundation..

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) about 6 years ago

I am going to have a spread sheet develped where you can put in the Appreciation rate and incremental rate change to show the cost over time of waiting.  Once I have it completed I will post it here for you all to use.  I think Joe's was a great idea.

Posted by Ricky Khamis, NMLS 173141 | CADOC 173141 - 480-339-1565 (Amerifirst Financial, Inc. (NMLS #145368)) about 6 years ago

I like this post...I say similar things to my clients.

Posted by Chad Felter, Providing service through out Hampton Roads about 6 years ago