Headlines are headlines, and believe me, I get it. Mortgage rates are a real hurdle. Higher payments have priced many people out of buying a home, and I would never tell someone to stretch beyond what they can comfortably afford.
But if you are in a position to buy, I believe the Scottsdale and Phoenix market deserves a closer look.
Where Buyers Have Room to Negotiate
With some buyers waiting on the sidelines, you may have more room to negotiate with a seller. That could mean a better purchase price, help with closing costs, or a credit toward buying down your interest rate. The opportunity depends on the home and the seller, but it’s worth exploring.
Start With the Payment, Not the Rate
I encourage buyers to start with the full monthly payment they can comfortably carry. If that number is $3,500, for example, let’s look for a home you love that fits within it at today’s rate. The interest rate matters, but so do the price, property taxes, insurance, HOA fees, and any concessions we can negotiate.
What If Rates Drop Later?
Could rates come down later? I believe they may, although no one knows when. If they do, refinancing might give you a way to lower your monthly payment, depending on your finances, your home’s value, and the cost of the new loan.
There’s another possibility: lower rates could bring more buyers back into the market and push home prices higher. If you bought at a good price today, your home could then be worth more than you paid for it. You might benefit from both a lower payment through refinancing and increased equity. Neither is guaranteed, though. That’s why I focus on finding a home and a payment that make sense for you today, with any future upside as a bonus.
Why the Purchase Price Still Matters Most
And that brings me to the most important part: buying at the right price. A higher rate does not make every home a good deal. Some sellers are still holding firm on their asking prices. My job is to help you identify the homes where the numbers and the seller’s circumstances create a real opportunity, then negotiate in your best interest.
In a recent purchase, I helped a client negotiate seller concessions and buy at a price $20,000 below the home’s appraised value. Every transaction is different, but that is the kind of opportunity I look for.
If you’re wondering whether buying now could work for you, let’s talk through your situation and the homes available across Scottsdale, Phoenix, and the surrounding areas. We’ll look at the actual numbers so you can decide what makes sense on your terms.