Recently, I had a conversation with a homeowner about why they chose to move forward now. With all the noise around interest rates, rising costs, and “waiting to see what happens,” their perspective was so good I had to share it.
I won’t bore you with the entire conversation, like what I made for dinner that night. (Chicken parm. It was delicious.) First, we talked Interest Rates. When rates came up, they took a much more zoomed-out view.
Average per every 10 years:
- 1980s — 12.7%
- 1990s — 8.1%
- 2000s — 6.3%
- 2010s — 4.1%
- 2020s — 5.2% so far, heavily influenced by the pandemic years.
Their point wasn’t that today’s rate is ideal. It was that waiting for the perfect rate has a cost, too. Buying sooner means potentially securing your homesite, locking in today’s home price and construction costs, taking advantage of current incentives, and getting closer to locking your mortgage rate. And if rates eventually improve? Refinancing may become an option.
But there’s another side to that. If rates come down and all those buyers who have been sitting on the sidelines decide it’s finally “time,” demand increases. More homes need to be built (shocker, I know), which puts pressure on homesites, labor, materials, incentives, and ultimately home prices. So, the question isn’t only, “What will rates do?” It’s also, “What could waiting cost me?”
Then we talked Taxes… This part of the conversation blew my mind—and why I hadn’t looked at it this way before is killing me (I’ll only admit that once).
Using a hypothetical $750,000 home value for comparison:
| Location | Approx. Annual Tax | Approx. Monthly |
|---|---|---|
| Delaware | $3,375 | $281/mo |
| Maryland — higher-tax area | $10,275 | $856/mo |
| Pennsylvania — higher-tax area | $15,000+ | $1,250+/mo |
| Connecticut — higher-tax area | $16,500+ | $1,375+/mo |
| New York — higher-tax area | $18,075 | $1,506/mo |
| New Jersey — higher-tax area | $18,750+ | $1,563+/mo |
That led to my favorite part of the conversation. He said, “I look at property taxes almost like paying rent to the state. My mortgage, on the other hand, is at least helping me build ownership in something I actually want.” Think about that for a second.
If you’re already paying $900 – $1,500+ a month in property taxes to stay in a home or location that no longer fits your life, how much does that change the way you look at paying a little more because of today’s interest rate, especially when you factor in Delaware’s modest property taxes?
So, jokingly, I asked him: “What’s the magic rate? What number would make you feel good about buying?” He said that anything in the 5s. Naturally, I obnoxiously chose 5.9%.
On the example we discussed, the difference between purchasing at 7.25% versus 5.9% was approximately $534/month, or $6,408/year.
Now look back at that tax chart. That was the aha! moment for me. The higher rate wasn’t something he liked. It was reluctant acceptance because the rate was only one piece of the equation. Then he said something I wish I had a camera and microphone for:
“Why would I choose to pay the same or more for something I no longer want? Sure, I’d love to pay less and eventually I hope I will, but it was our time to move. I’m so glad we did, and overall living in Delaware is better and less expensive for us.” There’s a lot packed into that statement.
Maybe the kids have moved out and you’re paying for rooms you don’t use. Maybe you’re retired and still paying enormous property taxes. Maybe it’s the maintenance. Maybe friends have already moved away. Or maybe your current home simply doesn’t fit the life you want anymore. Whatever the reason, you’re already paying for your current situation.
And here’s the other part that really stuck with me… You may get an opportunity to refinance your mortgage when rates improve. The state probably isn’t going to offer you the same opportunity with your property taxes. So, should everyone buy right now? Of course not. If you don’t have a need or desire to move, waiting may make sense.
But if you already want or need to move and believe you’re within a 6 – 18-month window, I think it’s worth having the conversation now rather than waiting for the headlines to tell you when the time is right. Because moving forward sooner could mean:
- Locking in your home price: Establishing your contracted purchase price rather than waiting to see how future construction costs may change.
- Schell Brothers’ no-escalation clause: Taking advantage of applicable contractual protections against increases in construction costs, materials, fuel, and tariffs.
- Securing your preferred homesite: Choosing the location that best fits your lifestyle while it’s still available.
- Taking advantage of current incentives: Exploring available opportunities that could change or expire.
- Getting ahead of potential demand: Having more choices now rather than assuming the same opportunities will exist if interest rates decline.
- Evaluating your overall cost of living: Understanding how property taxes, maintenance, utilities, and other expenses could change with a move.
- Planning your financing: Understanding current mortgage options, future rate-lock opportunities, and the possibility of refinancing if conditions become favorable.
We see the same headlines you do. We feel the same cost increases you do. And nobody knows exactly where rates, prices, fuel costs, tariffs, or the housing market goes next. However, you don’t have to predict the market to make a good decision about your life. You just need to understand what staying costs you, what moving costs you, and what waiting could potentially change.
You don’t have to decide to buy today. But you should know what buying today versus waiting actually looks like for you.
Let’s explore your timing, preferred community, homesite opportunities, home pricing, incentives, and overall monthly costs to see what the numbers actually say. Conversations never hurt. They’re always free. Remember, it’s never too early for a conversation, because the best home purchases start with a plan, not a contract.
Ready to think like a savvy homeowner?
Whether you’re actively searching for a new home or just exploring what’s possible, let’s have a conversation! Connect with me to learn more about Red Cedar Farms, explore your options, and discover how a little planning today could make a big difference tomorrow.
FRANK RYAN
(302) 569-9367
Frank@schellbrothers.com
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