If You Have a Pet, Prepare to Pay More for Rent, or Consider Buying Your Own Place

Not Sure If You’re Ready To Buy a Home? Ask Yourself These 5 Questions. If you’re trying to decide if you’re ready to become a homeowner in the next twelve months, there’s probably a lot on your mind. You’re thinking about your finances, today’s mortgage rates, home prices, the current state of the economy, and more. And, you’re juggling how all of those things will impact the choice you’ll make. It’s a lot. But here’s what you need to remember. While housing market conditions are definitely a factor in your decision, your own personal situation and your finances matter too. As an article from NerdWallet says: “Housing market trends give important context. But whether this is a good time to buy a house also depends on your financial situation, life goals and readiness to become a homeowner .” So, instead of trying to time the market, focus on what you can control. Here are a few questions that can give you clarity on whether or not you’re ready to make your move. 1. Do you have a stable job? Buying a home is a big commitment. You’re going to take out a home loan stating you’ll pay that loan back. Knowing you have a reliable job and a steady stream of income is important and will give you peace of mind for a purchase so large. 2. Have you figured out what you can afford? If you have a reliable paycheck coming in, the next thing to figure out is what you can afford . This depends on your budget, spending habits, debts, and more. At this point, it helps to talk with a trusted lender. They’ll be able to tell you about the pre-approval process and what you’re qualified to borrow, current mortgage rates and your approximate monthly payment, closing costs, and other expenses you’ll want to budget for. That way, you have a good idea of what to expect. 3. Do you have an emergency fund? As you crunch your numbers, you'll want to make sure you have enough cash left over in case of emergency. Think about it. You don’t want to overextend on the house, and then not be able to weather a storm if one comes along. It’s not a fun topic, but it’s an important one. As CNET says: “You’ll want to have a financial cushion that can cover several months of living expenses, including mortgage payments, in case of unforeseen circumstances, such as job loss or medical emergencies.” 4. How long do you plan to live there? It was mentioned above, but buying a home comes with some upfront expenses. And while you’ll get that money back (and more) as you gain equity, that process takes some time. If you plan to move again soon, you may not recoup your full investment. So, how long should you stay put in an ideal world? Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “Five years is a good, comfortable mark. If the price of your home appreciates considerably, then even three years would be fine.” So, think about your future. If you’re going to live there for a while, it may make sense to go for it. But, if you’re looking to sell and move within a year or two because you’re planning to transfer to a new city with that promotion you’ve been working so hard for, or you anticipate you'll need to move to take care of family, those are things to factor in. 5. Do you have a team of real estate professionals in place? If you do, great. But if you don’t, finding a trusted local agent and a lender is a good first step. Having the right team can make figuring out everything else easier. The pros can talk you through your options and help you decide if you’re ready to make your move, or if you have a few more things to get in order first. Bottom Line If you want to have a conversation about the most important things you need to consider when buying a home, let’s connect.

Is January the Best Time To Buy a Home? You may not want to put your homebuying plans into hibernation mode this winter. While a lot of people assume spring is the ideal time to buy a house , new data shows January may actually be the best time of year for budget-conscious buyers. Kind of surprising, right? Here’s why January deserves a serious look. 1. Prices Tend To Be Lower This Time of Year Lending Tree says January is the least expensive month to buy a home. And there’s something to that. January has historically offered one of the lowest price-per-square-foot points of the entire year. But the spring? That’s when demand (and prices) usually peak. And that’s not speculation – it's a well-known trend based on years of market data. So, how much less are we talking? Here’s a look at the numbers. According to the last full year of data, for the typical 1,500 square foot house, buyers who closed on their home in January paid around $23,000 less compared to those who bought in May. And that general trend typically holds true each year (see chart below): Now, your number is going to depend on the price, size, and type of the home you’re buying. But the trend is clear. For today’s buyers, it's meaningful savings, especially when affordability is still tight for so many households. 2. Fewer Buyers and More Motivated Sellers And why do buyers typically save in the winter? It’s simple. Winter is one of the slowest times in the housing market each year. Both buyers and sellers tend to pull back, thinking it’s better to wait until spring. And that means: You face less competition You’re less likely to get into a multiple offer scenario Sellers are more willing to negotiate (since there aren’t as many buyers) With fewer buyers in the market, you can take your time browsing. But winter doesn’t just thin out the pool of buyers, it also reveals which sellers truly need to sell. Because fewer people are house hunting during the colder months, sellers who really need to move tend to be more open to negotiating. As Realtor.com explains: “Less competition means fewer bidding wars and more power to negotiate the extras that add up: closing cost credits, home warranties, even repair concessions. . . these concessions can end up knocking thousands of dollars off the price of a home.” This can include everything from price cuts to covering closing costs, adjusting timelines, and more. It doesn’t mean you’ll automatically get discounts on every home. But it does mean you’re more likely to be taken seriously and given room to negotiate. Should You Wait for Spring? Here’s the real takeaway. When you remove the pressure and frenzy that comes with the busy spring season, it becomes much easier to get the home you want at a price that fits your budget. But if you wait until spring, more buyers will be in the market. So, waiting could actually mean you spend more and you’d have to deal with more stress. Now, only you can decide the right timing for your life, but don't assume you should wait for warmer weather before you move. Buying in January gives you: less competition , potentially lower prices , and more motivated sellers . And those are three perks you’re not going to see if you wait until spring. Bottom Line If you’ve been thinking about taking the next step, this season might give you more opportunity than you think. Curious what buying in January could look like for you? Let’s take a closer look at your numbers and the homes that are available in our area.