4 Reasons Why You Should Home Shop in the Winter
The spring and summer months are typically the busiest for home purchases. And for good reason: warm weather makes open houses, home inspections, and moving more appealing.
But what about in the winter? While it is true that things slow down during the winter, that is not necessarily a bad thing. If you are looking to buy a home, the season benefits you in particular! You could even say that winter is the best time to look for your next home. Let’s explore some of the significant benefits you may find if you choose to go house hunting in winter.
Less Competition, Less Frenzy
Less competition is favorable to both home sellers and home buyers. When there are fewer buyers to compete with, you are less likely to enter a bidding war and more likely to have your offer accepted.
More people stay inside when it's cold as well, and tend to go house hunting during the summer months. In return, you'll have an advantage and will beat out the competition if there is any.
Bidding Wars are Less Likely
Would you like to possibly save some money? During the winter, there are fewer buyers, so bidding wars are unlikely, and you can negotiate a better price.
Take your time, as the lack of competition, combined with the seller's eagerness to close, gives you the edge. They may even be willing to waive some of the contingencies in order to get you into the house or agree to your move-in date, even if it means leaving earlier than expected.
The House is Put to the Test
You probably imagine yourself pulling up to a home when it has a lush, green lawn and blooming shrubs. House hunting in the winter is a different story because you can see past the initial curb appeal that would normally have you starry-eyed.
When you are inside the home, you can witness if the windows are old and drafty and if there is poor insulation. If you have snow in your area, you can also note if there is any leaking in the ceiling. Home shopping in the winter allows you to view homes on their worst days, instead of their best, and benefits you greatly so you can know what you’re possibly getting into!
Faster Closing Times
If you do not experience inclement weather and heavy snow in the winter, (which could delay inspections and surveys), all the parties involved in the home-buying process are less busy than they would be during other seasons, from the real estate agent to the lender to the appraiser.
When you consider how many steps are involved in purchasing a home, this is fantastic news.
The Best Season is Off-Season
If you're on the fence about purchasing during the winter, consider the benefits we covered. There are also a number of factors to consider when selling your home during the winter months.
Finding a trustworthy and reliable Realtor can point you in the right direction when it comes to determining the best time to buy. It's also worth noting that buying during the winter season can mean a variety of things depending on where you live. You should not, however, be swayed by myths about the real estate "off-season." Let's talk about your needs today, we can't wait to help you find the perfect home!
Tips for Preparing Your Credit for a Mortgage
If you're considering purchasing a home or refinancing an existing mortgage, you most likely know the importance of paying your bills in a timely manner in order to preserve good credit. Even if you intend to be responsible with credit, certain situations can derail you and harm your score.
We’re going to go over some tips to help you keep your credit in great shape so you can avoid any credit issues. Let’s get started!
Review Your Credit Scores and Reports
It is critical to review all three of your credit reports from Equifax, TransUnion, and Experian before applying for a mortgage. AnnualCreditReport.com offers a free copy of each report once every 12 months.
If you find any errors on your credit reports, you should notify the credit reporting agencies immediately. An investigation into a credit dispute can take between 30 and 45 days. Furthermore, if the first investigation results in a negative outcome, you may have to try again or try a different approach entirely to resolve the issue.
Pay Down Credit Card Debts
Are you aware that even if you make your monthly payments on time, having a large outstanding credit card balance can impact your credit? It's actually high credit utilization on your credit cards that can hurt your scores, but large balances in relation to your credit card limits cause that high utilization.
You can lower your credit utilization ratio by paying down your credit card balances. Once the new card balances are updated on your credit reports, this may have a positive impact on your credit scores.
Make On-Time Payments
This one comes as a no-brainer! On-time payments are critical to establishing and maintaining good credit. If your credit reports show any recent late payments, it's usually a good idea to wait some time (six to twelve months) before submitting a mortgage application.
When late payments first occur, they have the greatest negative impact on your credit score. Then, as time goes on, they become less damaging. In terms of scoring, the older a late payment becomes, the better.
Hold Off on New Credit Applications
When a lender checks your credit as part of an application, a hard inquiry is recorded on your credit report. That hard inquiry could have a 12-month impact on your credit score.
This isn't to say that every time a lender pulls your credit, it will harm your scores, but it is possible. As a result, if you know you're going to buy a house soon, you should put a hold on any non-essential new credit applications.
The Takeaway
Taking the time to improve your credit score could save you tens of thousands of dollars in interest over the course of a 30-year mortgage. Whether you are about to purchase your first home or your third, it’s easy to get lost in the excitement and the urge to move quickly. You must keep in mind the role your credit score plays in the cost of your mortgage and your ability to even qualify!
Before you apply, take your time and prepare your credit to the best of your ability. Your efforts may pay off and save you a significant amount of money in the long run.
Renting vs Buying: How to Decide
It goes without saying that purchasing a home is a significant life decision, but is it right for you? Of course, there is no single correct answer because both renting and buying have advantages and disadvantages. Your personal finances, however, will play a major role in your final decision. Especially for younger people, renting seems to be a more cost-effective option.
That is not always the case, however. There are several lifestyle factors that can influence your decision, including how flexible you are, your career goals, and whether you want to own your own home.
If you're debating whether to rent or buy, keep reading to find out what factors you should consider before making a decision.
Are Your Finances in Order?
If you decide to buy a home, make sure you have enough funds saved for your down payment, closing costs, and any unexpected expenses, such as home maintenance and repairs.
When you own a home, there is no landlord to call when something needs fixing; it is entirely up to you! You'll need to plan for the unexpected, whether it's plumbing problems, replacing appliances, repairing your roof, and the list goes on. In order to cover the maintenance costs that come with homeownership, you should save 1-3% of the purchase price of your home each year.
Buying a home is usually cheaper in the long run as well, and it offers you an opportunity to build equity. Your home will most likely have increased in value when you sell it, too.
Do You Plan on Staying Put?
What are your needs in terms of flexibility or establishing roots? If you intend to stay in one place for an extended period of time and are financially capable of doing so, purchasing a home makes the most sense. In return, the fact that you have the ability to make a home uniquely yours would make homeownership a better financial and emotional fit.
However, renting may be a better option if you prefer to be more flexible. If you are considering a job in another state, you wouldn't want to deal with the stress of selling your home while relocating. Or if you are a newlywed and plan on having children in the near future, you may not want to buy a home just yet that wouldn’t accommodate a growing family.
Both of these situations could possibly be better served by renting so you can figure out what you need in a home, what your budget allows, and what kind of house fits your future lifestyle.
Are You Ready?
There isn't always a simple answer to whether to rent or buy. Depending on your personal and financial circumstances, the answer may change over time. Rent-to-own properties are another option, where you begin renting and eventually become a homeowner.
Your financial status and lifestyle should guide whatever decision you make. Our Realtors are here to help. Reach out if you have more questions and if you are ready to make a move!
HOA Communities: Pros and Cons
Are you considering purchasing a home in a community with a homeowner's association (HOA)? Make sure you understand how these organizations operate before making an offer.
An HOA is governed by a Board of Directors (homeowners elected by other residents), and it's their responsibility to set and enforce rules and maintain the grounds. These organizations are not only found in single-family home communities but in condominium and townhouse communities as well. You must also pay certain fees to live in these communities So before you start looking for a new home, you should consider whether you want to live in a neighborhood with an HOA, which comes with both pros and cons.
Pros of HOA Living
1. HOAs Resolve Disputes Between Neighbors
When problems arise, (loose pets, loud and obnoxious parties, piles of trash by the road, to name a few), a homeowner's association can help.
If you notice another resident breaking a rule or regulation, the association can act as a mediator. Rather than discussing the problem with your neighbor and causing tension in your relationship, you can contact your homeowner's association, which will contact the neighbor on your behalf.
2. HOAs Have More Social Activities
Streets with an HOA often have a stronger sense of community than your average neighborhood. This is due to the fact that having an HOA encourages a sense of community. Not only do HOA meetings will help neighbors to get to know one another, but they also give greater opportunities for social events.
It wouldn't be out of the ordinary to see block parties and social gatherings on your street from time to time. It's also easier to connect with neighbors when you start sharing amenities like a pool, tennis courts, or a golf course. If you like meeting people and socializing, an HOA could be right up your alley.
3. HOAs Maintain Property Values
In HOA communities, homes, and common areas are consistently cared for and well-maintained because residents are held accountable to deed restrictions. Property values are heavily influenced by this maintained curb appeal.
A well-kept home in a well-kept neighborhood is what attracts many home buyers to live in an HOA. You could say this is the biggest perk for most!
Cons of HOA Living
1. HOA Fees Can be Expensive
Unfortunately, many HOA communities can be expensive to join. High HOA fees, in general, entail more landscaping, general maintenance, and amenities. However, if you don't care about having a swimming pool or a gym, these high fees would be a waste of your money.
If a home has high HOA fees, make sure to get a list of everything that's included in the price so you know exactly what you're getting and if it even benefits you personally. In addition, carefully examine your monthly budget to ensure that you can manage to pay the monthly dues.
2. HOAs Have Rules and Regulations
If the monthly fees are reasonable, paying HOA fees may not seem as bothersome. You should be aware that the HOA has rules regarding the exterior of your home, even if you're fine with the fee.
Color, type, and size restrictions may apply to your front door, shutters, and windows. Associations can even restrict your outside decor and the number of vehicles you can park. A fine may be imposed if you violate the rules and regulations of the community.
3. HOAs Can Lack Privacy
It goes without saying that you will not have a lot of privacy if you live in an HOA community with homes practically touching each other, such as a townhome, apartment, or even some single-family homes.
Those who like a rural or country lifestyle and don't want to be involved with neighbors should consider homes with no HOA. The benefit of living close to your neighbors is meeting more people if you are more social and thrive in a community.
Is a Community Right for You?
Bottomline, HOAs aren't for everyone. If you want complete privacy or the ability to change the appearance of your home, you probably won't be content living in an HOA community. However, if you want a low-maintenance lifestyle, HOA living may be ideal for you. Whatever you decide, carefully consider the benefits and drawbacks of HOA living.
As a final point, don't forget the importance of working with an experienced and knowledgeable Realtor. We look forward to assisting you on your home-buying journey!
3 Common Mistakes to Avoid When Buying a New Construction
The idea of a new construction home sounds appealing to many people. New construction homes provide endless customization options and the opportunity to truly make your own personal touches In a brand new home, you won't have to worry about old, stained carpets or old appliances; instead, you can select what best suits your family's individual tastes.
While choosing your favorite brick, paint, and countertops may be exciting and seem pretty simple, the buying process for new construction homes can be quite challenging without any prior experience and knowledge.
The good news is that following these tips for buying new-construction homes can save you money, and time. Here are three common mistakes to avoid when purchasing a new home.
Failure to Research Your Builder
Buying a new home will most likely be one of your family's largest investments in a lifetime, so it is essential that you prioritize quality, especially when it comes to the developer or builder in charge of creating your new home.
Even if you have completely fallen in love with a neighborhood and the style of its homes, you still must research your builder thoroughly. Look for reviews online, and keep an eye out for any patterns and feedback you may see, such as an excess amount of premature repairs/issues, poor workmanship, cut corners, and delayed construction.
You as the buyer can decrease your risks by doing appropriate research ahead of time, to save you both time and heartache!
Failure to Budget for Extra Costs
New builds can start as blank slates. Sure, some people may not consider it necessary to have privacy fences or gutters, but it’s only a matter of time before they realize they really dislike having a straight shot of their neighbors every time they sit on their porch, and they’ll probably be calling the gutter company after that first hard rain that creates trenches in the new lawn all around their home!
If you build in a community that has a Homeowner’s Association (HOA), you’ll want to read over the rules carefully. Make sure you set aside the expenses ahead of time to take care of any loose ends to be in compliance with the HOA. After all, nobody is excited about getting a letter from their Homeowner’s Association during the first week in their new home!
Failure to Work with a Realtor
There are most definitely some differences between buying a pre-owned home and a new construction home. As a result, unless you are an extremely experienced buyer, it is critical to have proper representation and take precautionary measures throughout the purchasing process of a new build.
It is of utmost importance and in your best interest to hire a Realtor before visiting potential locations and the property sales office. You always want your Realtor present to represent you properly! A Realtor will work to ensure that you are set up for success from the start, handling communications, disclosing the benefits and drawbacks of the property, and may even be able to help you negotiate lower costs.
Bottom Line
Purchasing a new construction home has significant advantages. However, there are numerous pitfalls, so buyers should exercise caution at all times and have the assistance of a real estate professional throughout the process. Before signing off on your new home, carefully consider all of the advantages and disadvantages of new construction.
Why Is a Home Inspection Important?
Whether you've purchased five homes or are about to buy your first, a home inspection is almost always recommended. You will actually find that it is one of the most common contract contingencies from home buyers is a home inspection. Continue reading to find out why a home inspection is so important and will benefit you in the purchase of your new home!
Home Inspections Reveal Safety Issues
Having a home inspection completed gives you the opportunity to have your potential home thoroughly investigated. A good and experienced home inspector will always find some issues with a home, even a newly built home. Some findings may not pose a huge threat, but some could potentially be serious and life-threatening issues, like mold or faulty wiring.
Worn roofs, inoperable windows, and plumbing deficiencies are some common home inspection findings. The end goal of having an inspection performed isn’t to make sure every detail of the home is perfect to your liking, but to discover and take care of any safety issues.
Home Inspections Can Identify Future Repairs
Buying a home can be a pretty significant investment, and a lot of buyers will be left with what feels like a depleted bank account. This means it’s important to know what lies ahead as far as expenses with your new home.
Your home inspector could make you aware that the roof is coming close to the end of its life, so it would be a good idea for you as the buyer to keep that in the back of your mind, and possibly start setting some money aside to replace it in the future. This could also be the case for windows, appliances, air conditioning, and many other things. You will appreciate having the heads up instead of being surprised down the road!
Home Inspections Allow for Negotiations
After a home inspection is completed, you as the buyer will have the opportunity to request repairs from the homeowner, and they will agree or disagree with taking care of the proposed repairs. Keep in mind though that the seller is not obligated to fix anything.
Without a home inspection, you wouldn’t have the opportunity to request repairs from a seller. You can request the repairs be made, the purchase price be reduced, or give you a cash credit at closing to fix the problems yourself. This is where a home inspection can pay for itself several times over.
In the event that none of these options are available (for example, if the property is bank-owned or is being sold as-is), you can get quotes to fix the issues yourself and create a repair plan in order of importance and affordability.
Final Thoughts
In light of these reasons, it is very important to conduct a home inspection before purchasing a home. While it may cost you a little bit of time and money, in the long run, you'll be glad you did it. Remember no home inspector is perfect and could overlook issues during a home inspection, they will inspect the home in far greater detail than you and your real estate agent did during your initial visit.
If you're not sure how the home buying and inspection processes work, one of our Realtors here at 316 Realty Group would be delighted to share their expertise and knowledge with you and provide some recommended home inspectors in the area. Reach out to us today!
First-Time Home Buyers & Rising Inflation
If you're like many first-time home buyers in the United States, you're probably worried about what inflation means for you. How do you know how this will affect the purchase of a new home? It doesn’t really help morale when you hear the latest statistics about inflation. In April 2022, inflation accelerated by 8.3% more than in April 2021, keeping inflation near 40-year highs!
In today’s blog, we will go over what inflation means for you, so you can better understand this concept, and move on with finding your first home. Let’s get started!
Inflation, in Plain Terms
Let’s first go over what inflation is. Inflation is the process in which prices increase over time. In other words, your money right now is worth less than when you first possessed it.
As consumers, we don’t like to witness inflation, but if you look at the big picture, some inflation can be a good thing. A healthy economy should always have some inflation, as rising prices encourage people to buy goods, houses, services, and more, instead of waiting until later. This results in more work that is available for producers, which means they can continue to hire.
Inflation can be good if occurring slowly, and not too quickly. For example, think about your favorite coffee shop, that latte you pay $3.50 for suddenly jumps to $6. That would be a shock, to say the least!
Housing Impact
Inflation impacts housing prices simply because the price of materials used for the construction of homes goes up.
Home appreciation is impacted because homes go through price increases, due to many variables. Such variables include the home’s condition, number of bedrooms/bathrooms, location, and condition.
Home Buying Impact
As a first-time home buyer, you’re curious about what impact inflation could have on you buying your first home. Due to the nature of inflation, the prices of homes will continue to climb for a while. Mortgage interest rates will rise, which means taking out a loan will become more expensive as a higher interest rate leads to higher monthly payments.
What to Do in This Market?
You're wondering what you should be doing as a first-time home buyer in this housing market. First, it’s s a smart move to pay off any existing debts, in order to have a better DTI (debt-to-income ratio.) This is an important factor a lender will look over when deciding to approve you for a loan. Make sure to avoid opening any new credit card accounts or making any big new purchases, this could harm your credit greatly.
Be Honest With Yourself
As a first-time home buyer, and especially in the current market, your budget won’t be able to fit everything you want in your home. Make a list of what your home absolutely must have and cannot do without.
Talk to your real estate agent about these aspects and don’t forget about fees and any funds you need to be aware of and may need to bring to closing.
Closing Up
This market may be intimidating for first-time buyers, and it may feel like you could be locked out of the market. High rates are combined with high home prices, and affordability is being pushed farther away right before us. If you have the means financially, you may want to start the search now and make a move. Contact our team at 316 Realty Group so we can guide you through the process of buying your first home, we promise you don’t want to do this alone!
Moving Tips for a Less Stressful Move
If you’ve ever moved, you know how it goes. The initial stages are full of excitement as you gather all of your belongings into boxes, and you feel ready and motivated for the work ahead! Once the more tedious work starts, you realize all of it will take a lot longer than you imagined.
Once the moving day finally arrives, the long and drawn-out day of heavy lifting and sore muscles comes to an end, and you are left with a new home full of boxes! Life doesn’t stop either. You still have family, kids, pets, jobs, and whatever else is on your daily schedule.
It’s an undeniable fact, that with moving comes stress, and we want to share some tips with you to hopefully make the process less stressful!
Carve Out Time
Time is one of the most significant factors of moving stress. More specifically, there isn't enough of it! You can’t avoid it altogether, but you can definitely make it a lot easier on yourself if you make sure to allot yourself enough time to get everything done.
Try and estimate how many days it could take you to pack up your home, and be sure to give yourself ample time to select and schedule a moving truck, set up utilities for the new home, and do a clean-up in your current home before leaving for good.
Starting early is a smart way to go because it can be easy to procrastinate and find yourself scrambling to pack with just a few days left!
Prioritize Organization
In order to not feel overwhelmed, try and pack up one room at a time. When sorting and labeling boxes, do it in a way that makes them easier to locate and unpack. Keep any important documents you may need in the near future in a safe and secure place, staying organized from the beginning will be a huge factor.
When labeling boxes, write clearly and even consider writing on the box the room they need to be placed in. The goal is to not have a truck full of identical boxes, which is sure to cause confusion and waste your time!
Pack an Overnight Bag
Once everything has been packed up and ready to move to your new home, it can be daunting to find what you need right away on that first day/night.
In order to avoid feeling rushed to unpack every last box on the first day, save yourself the stress and pack a bag with whatever you need to function normally for the first night or two. This could be outfits, toiletries, phone chargers, or even snacks. This will ensure you can unpack your belongings comfortably and not frantically!
Get Moving!
Above all else, when it comes to moving, you need a game plan if you want to minimize stress. Start early, one room at a time, clearly labeling each box! Keep some essentials in an overnight bag so you don’t find yourself frantically searching for those things on your first day. Also, contact utility companies to change or cancel services, and update billing addresses.
Preparation and organization result in less stress and more time to celebrate!
Housing Market 2022: Should You Wait?
Low inventory, fierce competition, and major price increases have impacted homebuyers since 2020, but quickly rising mortgage rates are making it even more difficult to find an affordable house. Due to the higher rates, many buyers can no longer afford homes in certain price ranges. The issue is that even basic single homes now cost the same as more upscale homes did a few years ago, so purchasers are forced to choose between waiting for additional inventory to come online or moving to a more inexpensive neighborhood. Many others are hoping for a price drop, but that may not happen anytime soon.
But if you're a prospective homeowner waiting for the market to plummet, you may be wasting your time by doing so.
It’s A Decision Personal to You
An investment in real estate is an extremely personal decision regardless of the market. After all, a home is the most expensive purchase most people will make in their lifetime, so being financially prepared is crucial. It would greatly benefit you as well to speak with a lender and even use a mortgage calculator to find out how much your monthly mortgage payments will be based on your down payment and interest rate.
Trying to time the market or predict what will happen next year is not the greatest way to buy a home. Instead, buy based on your budget and requirements. If you find a home you like in a desirable location that also meets your budget, it may be right for you. However, if you make too many concessions to obtain a home, you may wind up with buyer's remorse and feel burdened.
Buying in a Hot Housing Market
A hard fact is that you can’t return a house if you realize you overpaid for it or you don’t like it! In this market, buyers tend to make hasty decisions which can inevitably lead to buyer’s remorse.
Begin with a budget in mind and commit to sticking with it! Despite a minor increase in the number of homes for sale, purchasers are still faced with high prices and mortgage rates at the 6% level.
Again, you must consider your financial situation when buying a home. Is it financially feasible for you? Experts generally agree that for many people, purchasing and owning a home is a better financial decision than renting. It is never a bad investment if you can afford it.
Selling in a Hot Housing Market
The first step toward a successful sale is to find a real estate agent who has a vast knowledge of the area and who you know you can trust. The right agent will work closely with you to price your home competitively while addressing questions and offers from prospective buyers.
A hot market will be full of homes being sold “as-is,” and a lot of them will sell as such, but it is still a wise move to make smart and methodical decisions regarding updates and renovations. Some inexpensive moves could be fresh paint, clean staging, and organizing.
So, to Wait or Not to Wait?
There are thousands of examples out there that point to people who thought the market would come down one day, but it never did, causing them to lose years of equity. In other words, if you're waiting for home prices to significantly decline, you could be waiting for a very long time.
If you’re ready, our team at 316 Realty Group is more than prepared to assist you in the process of buying or selling, and we can form a game plan just for you. Contact us today and let’s get started!
Common Home Buying Myths: Busted!
Whether you've never bought a home before or are a seasoned homeowner, don't allow these common home purchasing fallacies to keep you from finding the perfect property for you.
To set your mind at ease, we'll help you sort through some of the most popular home buying myths.
Myth #1: Looking for a Home is the First Step
At some point or another, we’ve all been guilty of window-shopping for houses online. Some of us may even be guilty of driving to a neighborhood to see a home in person! You’re just looking, you just want to get a feel. But, stop! You are guaranteed to run the risk of setting your heart on the house and only to have it broken.
You could be viewing a home that is in a higher price range than what you are qualified for. Browsing and dreaming can be fun, but when it comes to buying, you need to ensure your credit is in tip-top shape and get pre-approved for a mortgage before you go too far. You need to be aware of what your budget is!
Myth #2: You Only Pay the Down Payment Up-Front
Only in a dream world! For instance, the seller may determine that you are responsible for closing costs, which can range from 3% to 6% of the purchase price.
Don't forget the fees, taxes, and other expenses for inspections, and insurance, among other factors.
Myth #3: Home Inspections Aren’t Necessary
Sellers would love for you to neglect this critical step! It implies you'll get the house just as it is, with all of its flaws. And sometimes the flaws aren't immediately apparent.
You may be tempted to skip out on getting an inspection because the market is hot and you’re scared that a buyer who chooses to waive a home inspection could purchase the house before you. Trust us, it is not worth it in the long run! Inspections will save you time and especially money!
Myth #4: You Don’t Need a Real Estate Agent
The internet causes many homeowners to feel empowered these days when it comes to home-buying. You may ask yourself, why do I even need to hire a real estate professional?
Real estate agents are indispensable in the home-buying process. You will greatly benefit from their knowledge when it comes to the search, negotiating, assistance with legalities, and much more. You will never regret having a real estate agent you trust on your team.
Myth #5: You Must Put 20% Down
Affordability is usually a significant concern for prospective homebuyers, and this includes determining how much money to save for a down payment on a house. While a 20% down payment may provide certain advantages, such as avoiding Private Mortgage Insurance (PMI) or lowering your monthly mortgage payment, it is not the sole option.
Other down payment amounts, such as 5%, 10%, or 15%, may provide you more choice in determining what property price to strive for and might be a less intimidating amount of money to have saved before closing on your home.
So, Now What?
There are an endless number of myths and misconceptions when it comes to the world of home-buying. Most important of all, make it a priority to find yourself a realtor who you can trust and would like to work with!
Our real estate professionals with 316 Realty Group encompass the highest degree of integrity, knowledge, and experience, and our goal is to achieve your real estate goals! Contact us today so we can guide you through the home-buying process!