Open houses are a big part of both the buying and selling process. You might be hesitant to host or attend one because they can be painfully awkward and inconvenient. Walking around your potential new home with a real estate agent following you from room …
When you’re starting the process of selling your home, be prepared to see your home in a whole new light. A really, really bright light. That’s because buyers will notice all the great things about your home…and also all the not-so-great features that you’ve learned …
Whether you’re a first-time buyer or a seasoned homeowner, shopping for a new home can feel daunting. In fact, 56% of buyers said that “finding the right property” was the most difficult step in the home buying process.
Buying a home is a significant commitment of both time and money. And a home purchase has the power to improve both your current quality of life and your future financial security, so the stakes are high.
Follow these five steps—and complete the corresponding worksheet offered below—to assess your priorities, streamline your search, and choose your next home with confidence.
The first step to finding your ideal home is determining WHY you want to move. Do you need more space? Access to better schools? Less maintenance? Or are you tired of throwing money away on rent when you could be building equity? Pinpointing the reasons why you want to move can help you assess your priorities for your home search.
Don’t forget to think about how your circumstances might change over the next few years. Do you expect to switch jobs? Have more children? Get a pet? A good rule of thumb is to choose a house that will meet your family’s needs for at least the next five to seven years. Be sure to set your goals accordingly.
Many financial professionals recommend following the “28/36 Rule” to determine how much you can afford to spend on a home. The rule states that you should spend no more than 28% of your gross monthly income on housing expenses (e.g., mortgage, taxes, insurance) and a maximum of 36% of your gross monthly income on your total debt obligations (i.e., housing expenses PLUS any other debt obligations, like car loans, student loans, credit card debt, etc.)
Of course, the 28/36 rule only provides a rough guideline. Getting pre-qualified or pre-approved for a mortgage BEFORE you begin shopping for homes will give you a much more accurate idea of how much you can borrow. Add your pre-approved mortgage amount to your downpayment to find out your maximum purchasing potential.
When it comes to real estate, WHERE you choose to buy is just as important as WHAT you choose to buy.
Do you prefer a rural, urban, or suburban setting? How long of a commute are you willing to make? Which neighborhoods feed into your favorite schools? These decisions will impact your day-to-day life while you live in the home.
Another important factor to consider is how the area is likely to appreciate over time. Choosing the right neighborhood can raise the profit potential of your home when it comes time to sell. Look for communities that are well maintained with high home-ownership rates, low crime rates, and access to good schools, desired retail establishments, and top employers.
Start with the basics, like your ideal number of bedrooms, bathrooms, and square footage. Do you prefer a one-story or two-story layout? Do you want a swimming pool?
Keep in mind, you may not find a home with all of your “wants,” or even all of your “needs” … at least not at a price you can afford. The reality is, most of us have to make a few compromises when it comes to buying a home.
Some buyers will opt for a longer commute to get a larger, newer home in the suburbs. Others will sacrifice hardwood floors or an updated kitchen so that their kids can attend their desired school.
If you’re faced with a tough choice about how or what to compromise in your home search, return to STEP 1. What were your original goals and motivations for moving? Reminding yourself of your true priorities can often provide the clarity that you need.
A good real estate agent can remove much of the stress and uncertainty from the home search process. From setting goals to securing a loan to selecting the best neighborhood to meet your needs, we will be there to assist you every step of the way.
And no one has more access to home listings, past sales data, or market statistics than a professional agent. We can set up a customized search that alerts you as soon as a new listing you might like goes live. Better yet, we get notified about many of the hottest homes even BEFORE they hit the market.
You might guess that the VIP service we provide is very expensive. Well, the good news is, we can represent you throughout the entire home buying process at NO COST to you. It’s true; the home seller pays a buyer agent’s fee at closing. So you can benefit from our time, experience, and expertise without paying a dime. It’s no wonder 87% of buyers choose to purchase their home with the help of an agent.
And although we’ve listed it here as STEP 5, the reality is, it’s never too early (or too late) to contact an agent about buying a home. Whether you plan to buy today, next month, or next year, there are steps you can (and should) be taking to prepare for your purchase.
Call us today to schedule a free consultation!
The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.
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Buying a home can be exciting, scary, and stressful for anyone but especially if you’re going from renting (or living with family) to buying a home. I’d rather it be more exciting than scary or stressful for you. This is why we created this guide! …
Sometimes, you have to get a little creative to stand out in this busy market. Over the past year, the real estate market has been so hot that it’s not unusual for homes to go off-market in days. (The lack of inventory is to blame.) …
Being in-between homes is more common than you think — and we have a plan if it happens to you.
At first, it sounds like a problem any seller would love: Your New Jersey home sold after only days on the market. After all, the fear of a property lingering on the market, enduring possible price cuts, or low ball offers is what keeps many from selling in the first place. While a quick sale is a reason to celebrate, the challenge comes when it happens before you can find a new home.
This is an increasingly common situation in our current market, which remains hot due to the continued limited inventory that started in April 2020. Though inventory may increase in the spring selling season, there’s a conundrum. For every home listed, another home has to be bought. Until inventory outpaces demand, securing your next home might likely take a little longer than anticipated.
Still, the upsides of a speedy home sale outweigh the inconvenience of possibly being in-between homes: Less drama, achieving your asking price (or more), and being able to consider multiple offers to find the best buyer for your house. We can help you plan ahead by following these strategies before you list.
If you are selling your home, you could ask your new buyer for a lease back. In your contract, this clause essentially states that you won’t finalize your home’s sale until you find a new home. Ordinarily, buyers find such clauses to be off-putting because it creates a lot of uncertainty in their own timelines. However, when demand is very strong like it is now, there may be a buyer out there who has a more flexible timeline for their move. (For instance, a family in the market for a home but doesn’t want to move until the new school year starts). We’ll discuss it together to see if a clause would make sense for you.
Whether you’re located by the beach, the city, the mountains, or a quaint small town that’s popular with tourists, there are seasonal rentals to be found. While the seasonal vacation rental market is projected to pick up as travel rebounds following all that 2020 brought, these rentals weren’t going as quickly as annual rentals. In other words, there are more options to be found, often at prices lower than they’d traditionally go for. Look out for deals for off-peak rentals especially. Another option is corporate housing since they typically offer more flexibility as you settle into your new area. Both vacation rentals and corporate housing tend to be furnished, so if your furniture is in storage until you’re able to buy your new home, you’ll be comfortable the whole time.
Yes, you should look at the complexes in your area to get a sense of their availability and price, just in case. We have great insight about our local market and connections to agents to specialize in rentals — and not just homes for sale. Additionally, some of our clients may be on the fence about listing their home. They may consider a rental arrangement, be former buyers who purchased multi-family homes, or are former buyers who purchased vacation homes that are rented out in the off-season. Which brings us to…
When it comes to securing a new home in a limited inventory market, sometimes, it comes down to having an agent who knows how to leverage their connections. As your real estate agent, I’m prepared to tap into our database of potential sellers in the areas that you’re considering buying. From there, we’ll have conversations with each interested seller and set appointments to preview their home for you. If we can help find potential homes to showcase to you so that we’re not only helping you sell your home but ensure that you can buy a home as well, we will.
One of the reasons sellers panic about being in-between homes is dipping into their savings to cover the unanticipated living expenses, especially as the sale is pending on their current place. A bridge loan is a short-term loan that can cover you in this instance. (It can also add to your home purchasing power, in case that opens up more options to consider buying.) The downside is that these loans often have higher interest rates and quicker repayment periods. Do the math and read the fine print to see if this makes sense for your situation. Need some advice? Let’s connect.
When you’re putting your home up for sale, it’s easy to let anxiety take the wheel. The fear of selling your home before lining up your next home is one of those worries that commonly come up when the market is hot. However, it’s also one with a few easy solutions — and depending on your unique situation, we may have even more creative ideas depending on your market. You never know if such a scenario may be a blessing in disguise, too. Just think, next year at this time, you may be sitting pretty in an affordable vacation rental in a fun destination, taking your time to find your dream home.
Buying a home and selling a home can be two of the most stressful — and expensive — life events. And, they often happen simultaneously! If you’re looking to buy a home while also trying to sell your home, don’t panic. In this post, we’ll …
The housing market was red hot for months. Mortgage rates were low, and the competition for homes was fierce, with many people paying far above the asking price. Buyers were snapping up homes within hours of being listed, leaving many frustrated in their search. Usually, …
It’s undeniable that the real estate market has been hot over the last couple of years, with low inventory across the boards and high competition among buyers. However, the market now seems to be making a shift. After three years, the inventory of homes for sale has finally increased for the first time since June 2019, with newly listed homes up 6.3% nationally compared to a year ago.
While sellers are still listing at rates 6.4% lower than the pre-pandemic years from 2017 to 2019, the market is in the process of making major shifts. It’s still a seller’s market right now, but for how much longer? As a first-time homebuyer or even a seasoned homebuyer, it’s important to keep up with the shifting market trends in order to secure a successful transaction. Read on to learn more about the shifting real estate market and discover how to better navigate these changes.
In May 2022, Realtor.com released some housing data that revealed some major turning points in the market. In terms of inventory, the data shows that the number of active home listings entering the market is higher than it’s been since 2019. Nationally, the inventory of active home listings has increased by 8% over the past year, amounting to 38,000 more active home listings compared to May 2021.
While having more homes on the market is good for buyers, homes are still spending less time on the market compared to last year, and home prices are still rising. The market is definitely shifting, but not necessarily in a buyer’s favor just yet. Interest rates are continuing to rise. These rising interest rates coupled with all-time high listing prices have increased the cost of financing 80% of the typical home by 48% compared to a year ago.
In addition to rising prices, newly listed homes are larger. In May 2022, the share of newly listed homes less than 1,750 square feet declined from around 47% to around 45%. In comparison, the share of newly listed homes more than 1,750 square feet increased from around 52% to around 54%. This may cause frustration for first-time homebuyers because while more homes are being listed on the market, many are larger and more expensive. For example, the national median listing price for active listings in May 2022 was $447,000. This is up 17.6% compared to May 2021 and up 35.4% compared to May 2020.
In addition to partnering with a local, expert real estate agent, utilizing the following tips can help first-time homebuyers better navigate continued market shifts.
Know Your Budget
With rising mortgage rates and increased home prices, it’s essential to do your homework and plan what you can truly afford in advance. In a seller’s market, you should be prepared to pay the asking price. However, it is essential that you make buying decisions based on your finances and not on your emotions. Just because you can financially afford to pay over the market value of a home doesn’t mean that you should or that it’s in your best interest over the long term.
Get Preapproval From a Trusted Lender
Along with having a thorough understanding of your budget before buying a home, you should obtain a preapproved loan with a trusted lender. Getting a preapproved loan signals sellers that you are a serious buyer, and it may even gain you access to earlier showings ahead of other buyers.
Be Flexible and Patient
A final tip for first-time homebuyers navigating today’s market shifts is to be flexible and patient. There will undoubtedly be ups and down on your homebuying journey, especially with today’s market and continued market shifts. While there will be ups and downs, just remember that buying a home is still within reach, and when in doubt, always reach out to a local, expert real estate agent for help.
While the market is shifting, it’s still an ideal time for sellers. The following tips will help you get the most out of your home selling experience.
Work With a Trusted Local Real Estate Agent
Even during a seller’s market, it’s important to work with a local expert real estate agent when listing your house. A local real estate agent will be able to give you the most up-to-date information on the market, navigate stressful contracts, and help you get the best price for your property.
Have a Pre-Inspection Before Putting Your Home on the Market
In addition to working closely with a local real estate agent, it would be to your benefit to have a pre-inspection completed on your home before you list it on the market. Having a pre-inspection can save you a ton of time, headaches, or delays down the road.
The Wild Wild West housing market had many people in panic mode — worrying that if they didn’t act now, they may never be able to buy a house amid record-high housing prices and increasing interest rates. With the changing market conditions of today, hopeful …
