Need a quick zinger that will get buyers off the fence? Consider this from Pat Zaby of Seminars & Systems by Pat Zaby.

"Did you know that a 1⁄2% change in interest is approximately equal to a 5%
change in sales price?"

This is a powerful statement that can help you get buyers off the fence or help buyers price their properties appropriately. Buyers and sellers need to realize the importance of the relationship of interest rates to the monthly payments.

Change in Interest vs. Reduced Sales Price
Purchase Price      $200,000
Interest Rate      5%    
Term      30    
Payment      $1,073.64
                  
1⁄2% Increase in Rate      $1,135.58
5% Increase in Price      $1,127.33
A 1⁄2% change in interest rates is approximately equal to 5% change in price
 
1% Increase in Rate      $1,199.10
10% Increase in Price      $1,181.01
A 1% change in interest rates is approximately equal to 10% change in price

Copyright 2010, Pat Zaby