What waiting can cost
THE HOME GUIDE / 039
The cost of doing nothing
What waiting can cost
There are good reasons to delay buying or selling. But a decision to wait deserves the same financial scrutiny as a decision to move.
ABOUT 7 MINUTES TO READ
Buyers wait for lower mortgage rates. Sellers wait for a stronger season. Investors wait until the market feels more certain.
Waiting can be reasonable. It may give you time to save money, prepare a property or understand your options.
The challenge is knowing what you're waiting for.
Prices may change while you wait. Your expenses continue. Your personal circumstances may change too. A useful plan should consider all of those possibilities.
THE SIX-MONTH TEST
Put a price on the decision to wait.
Start by choosing a realistic period, such as six months. Then ask what would be different financially if you acted now or waited until the end of that period.
YOUR DECISION LEDGER
Money you'll spend while waiting
Rent, mortgage interest, property taxes, insurance, maintenance or other expenses relevant to your situation.
Money you may avoid spending
Mortgage interest, transaction costs or ownership expenses you would incur if you moved now.
Money you may save or earn
Additional down-payment savings, investment returns or interest earned while your money remains available.
What could change
Property prices, mortgage rates, income, available inventory or your family's housing needs.
Comparing both choices matters. Counting rent as a cost of waiting while ignoring the costs you avoid by renting would give an incomplete picture.
For buyers: Waiting for lower prices can work. What else might change?
Imagine you're considering a $700,000 home but decide to wait six months.
You hope prices will fall. In the meantime, you're paying $2,500 a month in rent.
SIX MONTHS OF RENT
$15,000
$2,500 × 6 months
That is money you will spend on housing during the waiting period. But buying the home would involve expenses too, including mortgage interest, property taxes, insurance and maintenance.
If you wait, your down payment may also grow through additional savings.
Now consider the price of the property.
IF PRICES FALL 5%
$665,000
The price would be $35,000 lower.
IF PRICES RISE 5%
$735,000
The price would be $35,000 higher.
Hypothetical scenarios. Price changes are unknown, and these figures exclude financing and transaction expenses.
The buying decision comes down to your full cost of ownership, your alternatives and how much uncertainty you can comfortably manage.
For sellers: How much does another month actually cost?
Suppose you have already moved to another property and your previous home is vacant.
You're paying mortgage interest, property taxes, insurance, utilities and upkeep while waiting for a sale.
Let's say those costs add up to $2,800 a month.
Cost of carrying the vacant property for six months
$16,800
Illustrative additional holding costs of $2,800 × 6.
Waiting might still produce a better result if the home later sells for more. But there is no guarantee.
If you're living in the home while waiting, the calculation is different. Many housing expenses would continue regardless of whether you listed today or later.
Focus on expenses that change between your options. Also consider your next purchase, mortgage arrangements and the value of having a confirmed sale.
A changing market doesn't affect every property the same way.
A broad market headline can hide meaningful differences between property types.
For example, a neighbourhood may have few detached homes available while nearby condominium buildings have many competing listings.
Those buyers may have very different choices and negotiating positions.
Before deciding to wait for a market change, study the market that applies to your specific property.
Look at the evidence:
How many comparable properties are available?
How quickly have similar homes been selling?
Are new listings arriving faster than homes are selling?
Are prices and negotiated terms changing for your property type?
These measures can help describe current conditions. They cannot reliably tell you exactly what will happen next month.
REASONS TO WAIT
Sometimes waiting is exactly the right decision.
There are circumstances where delaying a transaction may improve your position or protect you from unnecessary risk.
You need a stronger financial cushion.
Saving more for closing costs and unexpected expenses may make ownership more manageable.
Your employment or living plans are uncertain.
Buying or selling before you know where you need to live can lead to additional transaction costs.
Your property needs important preparation.
Taking time to assess known defects, complete appropriate work or gather documents may help you present the property accurately.
The strongest reasons to wait are usually tied to a specific outcome that improves your readiness, affordability or transaction planning.
DECISION EXERCISE
What would make you change your mind?
Tap each example to see how a vague reason for waiting becomes a useful plan.
"I'm waiting for a better price."
Identify a price range that would make the purchase or sale workable. Then assess it using current comparable evidence and your financial limits. Review the plan at a set date.
"I'm waiting for lower mortgage rates."
Ask a mortgage professional to compare payments at several rates. Include changes in purchase price and available cash. Decide what payment would fit your budget without assuming rates will fall.
"I'm waiting until the market feels more certain."
Write down the evidence you want to see, such as changes in comparable sales, available listings or your financial position. Decide how often to review that evidence.
Use the waiting period to get ready.
Waiting becomes more useful when you can describe what you're doing with the time.
YOUR PREPARATION CHECKLIST
□ Calculate your actual monthly housing costs.
□ Know the purchase or sale price range that works for you.
□ Review financing and mortgage obligations.
□ Track comparable properties rather than relying on headlines.
□ Identify what preparation can improve your position.
□ Set a date to review your decision.
"Waiting" and "being ready" are two different things.
The market can change while you wait. Sometimes that change will help. Sometimes it will make your options more expensive or complicated.
Use the time to understand your numbers, monitor the right evidence and prepare for an opportunity that fits your circumstances.
Categories
Recent Posts
