Buy now or wait?

Does It Make Sense To Buy a Home Right Now? Thinking about buying a home? If so, you're probably wondering: should I buy now or wait? Nobody can make that decision for you, but here's some information that can help you decide. What’s Next for Home Prices? Each quarter, Fannie Mae and Pulsenomics publish the results of the Home Price Expectations Survey (HPES). It asks more than 100 experts—economists, real estate professionals, and investment and market strategists—what they think will happen with home prices. In the latest survey, those experts say home prices are going to keep going up for the next five years (see graph below):     Here’s what all the green on this chart should tell you. They’re not expecting any price declines. Instead, they’re saying we’ll see a 3-4% rise each year. And even though home prices aren’t expected to climb by as much in 2025 as they are 2024, keep in mind these increases can really add up over time. It works like this. If these experts are right and your home's value goes up by 3.78% this year, it's set to grow another 3.36% next year. And another 3.87% the year after that. What Does This Mean for You? Knowing that prices are forecasted to keep going up should make you feel good about buying a home. That’s because it means your home is an asset that’s projected to grow in value in the years ahead. I recommend buying now to lock in a home price despite the interest rate. There is a cost to refinance a home, typically 3% of the loan amount. However, this increase is lower than the amount the average home appreciates each year. Don't forget, the annual appreciation is compounded over time.  If you’re not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using expert projections from the HPES. Check out the graph below:     In this example, imagine you bought a home for $400,000 at the start of this year. Based on these projections, you could end up gaining over $83,000 in household wealth over the next five years as your home grows in value. Of course, you could also wait – but if you do, buying a home is just going to end up costing you more.  Bottom Line If you're thinking it's time to get your own place, and you’re ready and able to do so, buying now might make sense. Your home is expected to keep getting more valuable as prices go up. Let’s team up to start looking for your next home today.

The First Step: Getting Pre-Approved for a Mortgage 

Some Highlights A pre-approval is important because it helps you determine what the bank will allow you to purchase within a given needs/wants list. If the pre-approval doesn't align with what you are looking for in a specific area, you may need to revise that list. It's important to have this before we start looking for homes. Given how hot the market is, if you find a home you like and want to offer on it yet you haven't yet received a pre-approval, AND it's a Friday night, you may have to wait until Monday to receive that and we'll lose the deal by then.  Please reach out to me for any lender recommendations. If you’re looking to buy a home in 2024, getting pre-approved is a key piece of the puzzle. Mortgage pre-approval means a lender checks your finances and decides how much you’re qualified to borrow. As more buyers re-enter the market, it’ll help you make a strong offer that stands out from the crowd. Talk to a trusted professional to learn more and begin your homebuying process today.

Guide to the First Time Homebuyer

Guide to the First-Time Homebuyer Buying your first home is an exciting milestone in life. However, it can also be a complex and overwhelming process if you're not prepared. So, if you're a first-time homebuyer, here's a helpful guide to navigate you through the exciting world of real estate. 1. Understand Your Budget: Before you begin your home search, it's crucial to determine your budget. Start by assessing your financial situation, including your income, monthly expenses, and any existing debts. This will help you figure out how much you can comfortably afford to spend on a home. Remember to consider additional costs like property taxes, insurance, and maintenance. I always tell my clients: "Defense Wins Championships". I am referring to your own personal finance. In order to succeed as a homeowner (and in general, life), it's always important to have your own personal financial situation dialed before making a new one. 2. Get Pre-Approved for a Mortgage: Once you have a clear understanding of your budget, it's time to get pre-approved for a mortgage. This step is essential as it gives you a better idea of how much money you can borrow from a lender. Pre-approval also strengthens your position as a serious buyer when negotiating with sellers. Connect with me for recommendations on local lenders. 3. Research, Research, Research: Before you start attending open houses, take the time to research neighborhoods, schools, and local amenities. Consider your lifestyle and what's important to you in terms of proximity to work, public transportation, shopping, and recreational facilities. Understanding the different neighborhoods and their real estate markets will help you make an informed decision. This list needs to be flexible! Divide your needs and wants and be flexible with this list throughout the process. We may find that what you are looking for doesn't connect with what the market is offering and we will need to revise. 4. Find a Knowledgeable Real Estate Agent: Working with a knowledgeable and experienced real estate agent is crucial, especially for first-time homebuyers. An agent will guide you through the entire home-buying process, from finding suitable properties to negotiating the best deal. They have access to exclusive listings, market insights, and legal knowledge to protect your interests. It's important to find an agent that communicates well with you and sets realistic expectations. 5. Make a List of Must-Haves: Determine what features you absolutely need in your new home and what qualities you can compromise on. Make a list of must-haves, such as the number of bedrooms, bathrooms, size of the yard, or presence of a garage. This will help you stay focused during your search and avoid getting carried away by unnecessary amenities. 6. Start Viewing Homes: Once you have your list of must-haves and have narrowed down your preferred neighborhoods, it's time to start viewing. Take your time walking through each property and envision yourself living there. Pay attention to the condition of the house, potential renovations or repairs needed, and the overall neighborhood. This is when we'll start revising your needs and wants list. We may find that what you are looking for exceeds the budget allowed by our lender. 7. Make an Offer: When you find a home that meets your criteria and feels right, it's time to make an offer. Your real estate agent will guide you through this process, helping you determine the right price to offer and assisting with negotiations. Be prepared to provide an earnest money deposit to show your commitment to the purchase. 8. Home Inspection and Closing: Once your offer is accepted, schedule a home inspection. A professional inspector will thoroughly assess the property for any underlying issues that may affect its value or your safety. If necessary, negotiate repairs with the seller before proceeding to the closing stage. Closing involves signing legal documents, transferring funds, and officially becoming the homeowner. Your agent will guide you through this period. Buying your first home is an exciting journey, but it's important to approach it with careful planning and guidance. By following these tips, you'll be well-prepared to make informed decisions throughout the process. Remember, the key is to find a home that suits your needs and lifestyle while staying within your budget. Happy house hunting!