“How’s the market? Is this a good time to buy or sell, or should I wait?” The truth is if its the right deal, IT IS ALWAYS THE RIGHT TIME TO BUY. Unless you are in a crunch selling, can be a little more of a seductive mystery. For this blog post we’re keeping the focus on buying.
As realtors, we are here to help you find the perfect home for you, that meets your criteria. We do our research based on the information we collect from you,… the client. When the time comes and you want to buy a home, here are the steps.
- Plan a budget
- Find the agent
- Get pre-approved, you can check our blog about pre-approvals
This third step might take some time, but it’s very important to have a pre-approval. It’s essentially your roadmap. No need to look at anything without it.
- Research the areas you are open to living in.
- Go see homes
- Make an offer
- Finish your financial paperwork.
During the property search and previews, At The Estate Genies, we encourage our clients to think a little bit like an investor. An investor’s first priority is: what “value” will this property bring? Am I making or losing money? When is the best time to sell it or should I “hold” it? All good questions, right? Just so you know,we say “think a little bit as an investor” because you do want to live in your home. A true investor can turn a destroyed property into a neighborhood changing stunner. Most traditional buyers don’t have the resources or the vision. That doesn’t mean a traditional buyer can’t still “make their money going in” as Gary Keller would say.
Making your money going in refers largely to equity. Why? Think of equity as what you make after selling. This means strongly consider what is the opportunity for equity growth. As we’ve mentioned before a property can be your bank. This bank can be used as a safety net.
If you’re a parent or plan to be one,buying a home is definitely something to consider as a part of your financial plan.
When is the last time you’ve seen the price of tuition going down? Wouldn’t it be nice if you had a large pool of finances that you could somehow tap into to help your darling children go to college, trade school or something without graduating with debt?
“We’re not in a rush because when we buy, we’re going to stay there” “it’s such a big purchase I want to get what I want” “We’re not in a rush.” You can live there forever if you want, but any realtor would tell you they hear that all the time. In many cases, those same people are calling you to sell within 5-10 years. Any number of things can happen that may force you to relocate. Often good, but sometimes bad. No matter when you sell, in most cases you get to walk away with some pretty good to amazing cash.
For some reason, most people that are “waiting for the perfect time” never buy or end paying more. Remember, you have to get in the game to play.
If you don’t have cash, a good interest rate aids in getting a good deal. Good credit gives you tremendous leverage. The lower your FICO score the higher the interest rate. With interest rates on the rise ( 2 more scheduled for this year) the possibility of getting everything on your list is decreasing. This is because when interest rates rise, the same property now comes with a higher mortgage. We are talking the difference of tens of thousands of dollars over the lifetime of your loan. This affects good and bad credit.
A few weeks ago we read an article in the NY Times Fed raises interest rates and signals two more increases this year. What does this mean and how does it affect us in the decision of buying a home?
No matter what you think, home prices might go down to attract buyers, but interest rates will go up. Cash is king, so unless you have cash, getting that unicorn deal is slimmer than you think. If you one day hope to buy or build your dream home you should give yourself a good head start. As long as you make sure you can afford the payments your time is actually now.