2 Questions for Home Buyers

If you've been thinking about buying a house recently there's a good chance that you're weighing the pros and cons of purchasing as the market shifts. Last year, when interest rates were at an all-time low the biggest concerns for home buyers were lack of inventory, increased competition (multiple offers), and rapidly rising home prices (many paying over appraised value).

Today, buyers are most concerned with the rising interest rates, however, the good news is that interest rates will continue to fluctuate, and history tells us that it's just a matter of time until they fall again. The advantages of today's market include more homes to choose from (almost 25% more than this time last year), more time to decide which home to offer on and how to structure the offer, more flexibility for contract terms (inspection period, closing date, contingencies like home sale and appraisal), and of course, the ability to negotiate price, seller concessions and repairs found during inspection.

I encourage my Buyers to focus on the following two questions when deciding to make a move -

1. Why are you looking to move?

   1. Are you currently renting? How does the cost of renting compare to a monthly mortgage amount?

   2. What is missing from your current living situation? Do you need more space/rooms/garage/yard?

   3. Is location important to you? Are you switching jobs and considering a new commute? What about the schools your home is zoned for?

2. How does your answer to #1 fit into our current market conditions?

   1. How long do you think you'll live in this next home?

   2. Do you think interest rates will come back down and you could refinance in the future? Or should you consider buying down the current rate to decrease your monthly payment?

   3. Would you be open to renting the home out in the future?

   4. Overall, is the home a good investment? Consider the location, condition, opportunity to add value by renovating, etc

After reviewing the above questions be sure to discuss your answers in detail with your Realtor and Lender. There are so many ways that you and your Realtor can get creative with offer terms and negotiate to ensure you make a smart purchase, and also options to discuss with your Lender to determine the best loan for your financial situation.

As always, thanks for being here!

- Lindsey