When it comes to purchasing a home, it’s easy to get caught up in the excitement of finding your dream property. However, it’s important to consider the potential drawbacks of maxing out your budget for this significant investment. By buying a home that is within your means, you can maintain financial stability and preserve the ability to pursue other important financial goals. 

 

In this blog, we will explore several compelling reasons why stretching your budget to its limit when buying a home may not be the wisest choice. After all, homeownership isn’t cheap, and the expenses that come with it don’t just end at the closing table.

 

Maybe you love to travel but still want to settle roots in one location. Or you want to start saving as early as now for your retirement. Or maybe you just want to guarantee you’ll have enough funds in case of emergencies. Buying less house than you can afford means you’ll still be able to free up money in your budget which you can use for your other goals: savings, travel and leisure, emergency fund, college fund if you have kids, and even retirement fund. You don’t want to give up these objectives just to pay a large mortgage payment, ensuring that you have the freedom and flexibility to live your life as you’d like.

 

If you borrow the maximum amount you can afford, you might find it harder to stay current on your mortgage payments in case your life situation changes. Just think of any of these worst-case scenarios that can happen after you sign the dotted line: you lose your job, take a pay cut, your car breaks down, or you or anyone in your family have had a medical emergency. 

Depleting your savings just so you can buy a bigger home puts you at a greater financial risk in case such things happen. You can lessen this risk by keeping your monthly mortgage payments affordable and ensuring you have an emergency fund that won’t leave you financially vulnerable.

 

While your potential mortgage payments are more fixed than rent and you think you can afford it, remember to give yourself as much wiggle room for rising costs. Higher grocery bills and energy costs, especially if you’re moving to a bigger home, can make it harder to figure out a budget that you can comfortably afford each month. Likewise, homeowners association fees and property taxes also go up every year. While no one can plan for inflation, try to leave enough room when you’re putting together a post-home buying budget.

 

Perhaps one of the things you’re looking forward to the most when it comes to having your own place is decorating it to your style and liking. And since most homes don’t have furniture and appliances, you’ll most likely need to buy these big-ticket items, which could dent your wallet. Even things such as rugs, blinds, and other necessary fixtures aren’t cheap. Purchasing a house within your budget will help you afford pieces of quality furniture and decor that will complement your space, as well as durable appliances that will last.

 

Finding the perfect property is a dream come true until you realize you aren’t truly prepared for situations like leaky pipes, pest infestation, tree removal, or even gutter cleanings. If you’ve been renting for a long time before buying your first home, know that you can no longer count on your landlord to come over and fix things. 

Maintaining and improving a home isn’t cheap, nor will it be easy. This is why it’s critical to limit your spending during your home search so you can have extra funds available for any maintenance and repair. It’s safer as well to have a cash cushion for renovation projects after move-in day so you can improve your home to your specifications and enjoy your space comfortably.

 

Being house poor means you’re spending most of your total income on homeownership expenses, including mortgage payments, property taxes, maintenance and repair costs, utilities, and insurance, among others. If you’re living paycheck to paycheck and are having a hard time making ends meet because your mortgage is too expensive, the bliss and excitement of living in your dream home could be short-lived. You will soon find yourself stressed out just thinking about your house-related bills, and having little cash for the occasional splurge or a well-deserved vacation.

For starters, what exactly is “as is home”?

Selling a home “as is” means sellers put up their homes on the market without doing any repairs to improve its current condition. Rather than putting tons of money, time, and effort to fix the issues in their home, they put it up for listing as is, often for a lower asking price to attract multiple offers.

Maybe you’re thinking, “Why would anyone sell their home as is?” After all, there’s no better way to increase a home’s value and sell for top dollars than making repairs and staging your home nicely.

Here we explain some of the most common reasons why sellers might have to do it:

1. They’re in a tight financial situation so they couldn’t afford to do any repairs.

Sometimes homeowners would like to sell, but they don’t have the funds to make any repairs or tackle home improvement projects to increase their home’s value. In this situation, they may have no other choice but to sell as-is. There are also instances where a homeowner might have finished doing maintenance work on the home’s exterior but have no money left to spend on interior improvements. There are also those who, well, just want to save tons of money on repairs.

Since making repairs and staging are just some costs associated with putting a home for sale, it’s easier to sell as is for those who are in a tough financial situation because they can skip those processes.

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2. They want a cash offer.

Many people sell their houses as is because they want to attract cash buyers. Many of these buyers are local investors and flipping companies who purchase fixer-uppers or ugly homes and renovate them. Likewise, sellers generally love a cash offer because it helps expedite the home sale process. They get paid faster and use the quick cash to settle debts or spend it on other expenses.

Investment companies help distressed owners sell as is by purchasing with cash. The only downside is that you cannot expect them to pay anywhere close to a home’s market value.

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3. They want to avoid a lot of stress after inheriting a property or going through a divorce.

One option for people to offload a house they’ve inherited after a parent or loved one passed away is to sell it as is. It might make sense if you need to sell with your siblings and all of you live far away to oversee any home improvements before putting it on the market. It can also help prevent a major headache since they only have to split the profits from the home sale, avoiding a family feud.

Another common scenario is if someone had just “won” a house after a painful divorce but found out they couldn’t afford to pay for taxes, utilities, and upkeep costs anymore and would rather spend the money somewhere else. In this situation, it’s better to sell the property in its current condition, especially if it can help with moving on into a new life.

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4. They want to sell quickly.

Making repairs and doing home improvements may sound great, but the truth is they are also too time-consuming to deal with. It takes time to fix every minor issue, make some updates, and even to stage your home. They can prolong the time you have to wait before you can put your house up for sale. Homeowners who want to sell their homes quickly put it up on the market as is. It also helps speed up the transaction if they get a cash buyer or work with a reputable investment company.

 

A few things to remember when selling a home in its current condition:

• You still need to disclose known issues and defects. Selling a property as is does not exclude you from disclosing known defects and issues. It remains your legal obligation to talk about the home’s existing problems and truthfully answer any question from a buyer. The only exception is if you’ve inherited the property and you aren’t aware of its general condition.

• It doesn’t mean that the buyer will skip the home inspection. Although you clearly stated your intentions when selling the home, it doesn’t mean that a typical buyer won’t request a home inspection that will uncover any issues. Regardless, most mortgage lenders will require a home to be free from any health or safety issues before they can lend money to it.

• Make sure you’ve explored all other options before coming up with this decision. Putting your home up for sale can put a lot of stress and pressure on any homeowner. If you are considering selling as is, you may want to get help from a realtor who has experience in this kind of transaction before making a final decision. Maybe you can still come up with other ways to continue with the home sale without selling as is or adopt a creative sales plan that will suit your situation.

Photo via Pixabay

Making the decision to age in place can be an incredibly liberating choice. It’s a great way to spend your retirement years, and this goes well beyond its ability to save money by cutting out the potential cost of a retirement home or assisted living facility. However, retirement age brings with it a whole new set of safety concerns, so you’ll want to make a few minor adjustments to your living situation. And when it comes to aging in place, few things are more important for safety than lighting. We’ll talk about some of the best ways to light your house, so it’s as safe as possible for aging in place.

Make Sure You Focus on the Important Areas

Let’s face it: Not all parts of the house are created equal, as far as safety is concerned. There are just some areas in the home that are more dangerous than others, so these are rooms you’ll want to be sure you light properly. The kitchen is a very important place for efficient lighting, as it’s full of hard surfaces, corners, and sharp implements. Undercabinet lighting is a particularly great way to make sure the kitchen is well lit, as it helps you see your countertops better.

 

The bathroom is another important place to light well, since that’s where you first go when you wake up and sets the pace for the day. Because it’s important to keep your circadian rhythm regulated for better wake and sleep times, consider adding a skylight to your bathroom to bring in natural light during the day.

 

Finally, you’ll want to make sure that your stairways are well lit, so you can be sure you’re avoiding falls at all costs. You can operate the new lighting in these areas by having an electrician install switches at the top and foot of the stairs.

Light Your Home Strategically to Combat Poor Vision

If your vision has begun to fade, there are a few ways to improve it with the lighting you install throughout your home. This can be as simple as choosing a specific type of bulb that addresses your individual issues. Halogen lights, for example, can help to brighten large rooms, but you’ll want to make sure they’re mounted high up and far away from potential contact, as they tend to run hot.

 

Full spectrum lighting is another way to combat fading vision: It’s about as close as a lightbulb gets to natural sunlight, so it will provide you with soothing illumination that won’t feel too harsh. To this effect, dimmer switches are a great way to let yourself tailor the light levels to your exact preference.

Consider Some High-Tech Upgrades

If you’re enjoying thinking about the control you’re afforded with a good set of light dimmers, you’ll love something like a smart home hub that lets you control your lights from your smartphone. You can create your own custom lighting combinations, set schedules and timers, and a whole lot more.

 

While on the subject of high-tech tools, you might also want to invest in a robotic vacuum cleaner. This handy gadget can keep your entire home clean for you without the need to haul around a heavy vacuum cleaner yourself. Keeping your home clean is just as important as installing good lighting,  in order to prevent falling incidents. If there’s too much clutter for you to tackle on your own, you can hire a service to help you out.

 

Aging in place can seem like a pretty daunting concept, when you first start to consider some of the changes that might need to be made to your living space. When it comes to lighting, however, the upgrades don’t need to be too extensive! The right bulbs, a high-tech upgrade here and there, and a good strategy are all you really need to make your home as safe as it can be.

With the help of certain tools and systems, real estate professionals can take steps to guarantee the long-term loyalty of past clients and earn the future business of their current prospects.

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As a real estate agent, there are few things more painful than losing a lead that you spent money generating and time nurturing to another agent, or worse, discovering that a past client just went ahead and listed the very house you sold them a few years earlier with another agent.

If this has ever happened to you, you likely found yourself wondering what caused you to lose that lead or what you could have done differently to keep that past client loyal or secure that new prospect’s business.  

WHY AGENTS LOSE LEADS TO COMPETITORS

This section might be hard to read, but unfortunately, there’s no good way to sugarcoat the fact that other real estate agents might simply be doing it better than you. 

Here are a few of the most common reasons that might be causing you to lose leads to competing agents. 

• Other agents are nurturing better.

Let’s face it. Nurturing leads means playing the long game. It is tedious, time-consuming, requires you to be organized, skilled at multitasking, and have a high attention to detail in order to do it right. Understandably, this is super challenging for many agents and it doesn’t take long for leads to get swept up by someone else who stays in touch more often than you do.  

• Other agents communicate more relevant messaging.

If you’ve noticed your attempts to reach out by email or text have had little to no engagement, you might be communicating the wrong message. People don’t generally like being sold to and could start to perceive your messages as spam if you’re not being careful about ensuring your communications always add value to the reader. If another agent does a better job at communicating and offers more value in their content, you’ll likely get beat out. 

• Other agents are doing better marketing. 

One of the main reasons you could be losing leads to other agents is simply because they do a better job of staying in front of people through their marketing efforts. Imagine being a seller and everywhere you look, the same real estate agent’s brand is ALWAYS front and center.  It would be a no-brainer to hire the agent you hear and see the most from and easily assume that they’re the best local real estate expert. 

• Other agents are giving better incentives. 

Finally, you could be losing leads because other agents are offering better services, tools, and incentives than you. If you had to choose between two real estate agents and one agent said they could do everything the other agent could do PLUS sell your house faster by using dynamic advertising to attract the most relevant local buyers while also providing you with personalized financial data about your home that you could use to build wealth; which agent would you choose?

WHAT’S THE SOLUTION?

Now, for the good news. 

You can avoid all these problems and free up a lot of your time simply by incorporating one integrated system into your business.

Ylopo has recently integrated with Homebot so as well as providing complete digital marketing solutions to agents with Ylopo, incorporating Homebot helps agents to both retain more repeat business and grow more referral business. Now, agents can offer their clients unique tools and benefits, encouraging their clients to view them as a trusted advisor and the single best source of real estate knowledge available. 

Here are a few of the benefits the Ylopo and Homebot integration provides: 

• High-engagement email nurture for your seller leads. 

With an average open rate of 50%, your communications via Ylopo and Homebot are consistent, effective, and extremely relevant to prospects and past clients. It’s a system crafted to deliver superior email nurture for your seller leads and give you more brand exposure and, ultimately, higher conversion rates. 

• Dynamic remarketing & superior marketing tools.

Awaken your dead database automatically through remarketing on social media via real-time done-for-you dynamic video advertisements and dynamic listing alerts. In addition, Ylopo provides you with a multi-touch marketing strategy geared towards homeowners so your brand is everywhere, you’re never forgotten, and sellers will never be tempted to list with anyone else. 

• Better long-term nurture tools.

Leverage the power of Ylopo’s advanced text-based AI ISA, RAIYA, to always be nurturing and engaging with your prospects, even when you’re personally unavailable. RAIYA can even set listing appointments. 

• Unbeatable seller benefits and incentives. 

Never lose another listing opportunity to the competition again with the help of Homebot’s world-class tools that simply can’t be passed up by sellers and aren’t being offered by other agents. 

With the seller tools offered by Ylopo and Homebot you can provide your homeowners with:

1. Personalized financial data about their properties

2. Actionable tips and tricks to save them money and empower them to pay off their loans earlier.

3. Individualized tools to help homeowners build wealth, track their equity, home value, and more.

WHAT TO DO TO GET STARTED

With the help of Ylopo and Homebot you’re able to automate some of the most challenging aspects of your business and at the same time provide a superior experience for your seller prospects while continuing to maintain your relationships with past clients.

Getting started with Ylopo and Homebot is easy. Homebot is deeply integrated into Ylopo and available to Ylopo clients at no additional cost. Once you’re set up with Ylopo all you need to do to take advantage of everything Homebot has to offer is follow a few simple steps. 

Losing your valuable prospects and past clients to competitors could be a thing of the past. Get started by clicking here to learn more about Ylopo and Homebot.

STILL ON THE FENCE? 

Here’s what other real estate agents have to say about their experiences using Ylopo and Homebot. 

It’s halfway through the year, and you’re probably one of those homeowners who’d already forgotten about their New Year’s resolutions to keep their home more organized. Or you’re a new homeowner who has just packed and moved to a new place and realized you have way too much stuff even if you don’t want to admit it. 

If you’ve made it a mission to embrace a minimalist home interior so you can live simpler, we’ve come up with short but sweet and essential tips and changes that you can apply to your current space. Hopefully, with fewer knick-knacks cluttering your living spaces and weighing down your daily life, it will be easier to beautify your home that will ultimately help you reap the benefits of living better with less. 

 

1. Minimize clutter and maximize storage.

Perhaps one of the main reasons you’re looking to embrace minimalist home decor is due to the clutter your home has accumulated over the years. And while it can be overwhelming to declutter and redesign your house at once, the key is to start small. Tackle one space or room at a time to make the task more doable. A good rule of thumb is to get rid of surplus stuff and keep only the items that are truly essential and meaningful to you. If you aren’t ready to part with your belongings completely, having optimal storage will allow you to store what you don’t need to avoid clutter from overflowing into your living spaces.

If you’re looking to make a good impression in your kitchen, for instance, check what you display on the shelves, countertops, and tabletops. Stick to essentials only or those you use on a daily basis, then store the rest in the cabinets. A minimalist home makes use of clever storage solutions, such as furniture that can serve multiple purposes (including storage). Once you’ve stowed away most of your things, it’s easier to organize and designate a spot for everything you’ve chosen to display.

 

2. Play with patterns and textures.

The absence of patterns or colors doesn’t have to deter you from making your space more interesting. You can add a variety of textures, fabrics, and woven elements—materials such as seagrass, rattan, velvet—that will add dimension to the room and make it appear less dull and more comfortable. The different textures and fabrics in your chosen pieces will also bring an added warmth throughout the room without making it overwhelming.

 

3. Maximize the use of natural light.

Since you’ll be using mostly neutral colors when decorating your minimalist home, lighting can help you play with shades and tones to make your room feel warm and cozy instead of being too stark or unwelcoming. And the best way to do that is to embrace and let in as much natural light as possible. It’s recommended to use breezy, sheer curtains to highlight your windows and bring in a lot of sunlight. If you live in a city where there isn’t much sunlight or that the room lacks a lot of natural light, you can try to think of ways to brighten up your space using different lighting fixtures. Placing a mirror is also a good idea as it will help spread natural light around your space.

 

4. Decorate with meaning and purpose.

Aside from keeping clutter at a minimum, one of the most important things to remember when trying to embrace a minimalist home design is that everything needs space and purpose. Instead of adorning your house with various items that could end up cluttering your space, choose pieces with intention and limit your decorations to the ones that are most meaningful to you. Using pieces that hold special value or meaning, such as family heirlooms and special photos, brings greater attention and value to you and the ones who are living in the home. If you tend to over-decorate, ask yourself whether you genuinely need the item before filling up the space.

 

5. Resist the temptation to buy or add more.

Always remember that less is definitely more when it comes to designing a minimalist home. This means the biggest challenge you might have to face is to practice restraint when it comes to buying new items. Before buying anything, ask yourself: “Do I really need this?” “Where will I put it?” Turn down advertisements as much as you can; unsubscribe and unfollow shops that will tempt you with their latest finds or huge sales. Be mindful of online shopping and figure out what makes you really happy in your space.

When you choose quality over quantity, you can set aside your budget for more expensive pieces that will enhance the curated look you want to achieve. Make sure that you also practice restraint when decorating. Knowing when to stop adding something to the space and remembering that every piece in the room should have a purpose will help you enjoy the pared-back aesthetic you’re aiming for.

There’s a host of reasons many homeowners choose to downsize. Perhaps they’re going to retire soon or their kids have already flown the coop. There’s no need for the extra rooms anymore; cleaning and maintaining them can also be costly. Or maybe they’ve looked at their recent electricity bills and thought about how they could save money on utilities. More people are also loving the idea of living more mindfully, and one way to do it is to have a smaller home that’s more manageable and easier to maintain.

No matter your reason, remember that downsizing is a major decision that requires you to carefully consider your situation and expectations. Here are five questions to ask yourself when you are considering the move. Hopefully, your answers will help you prepare for the lifestyle and financial changes waiting for you ahead.

To save money is one of the top reasons why people downsize. If you’ve given serious thought to downsizing, it’s probably one of the things you first looked into. When you are comparing how much you currently pay for your house vs how much you’ll pay for a smaller home, don’t forget to add the usual costs aside from mortgages, such as property taxes, homeowners insurance, utilities, and even maintenance, repairs, and upgrades. You might also need to spend on homeowners association fees if you’re downsizing to a townhouse or condo.

You need to carefully consider these fees because moving into a smaller home doesn’t automatically mean you’ll be saving money. While expenses like utilities and maintenance are relatively cheaper when you downsize, you can also potentially have higher costs of living depending on where you will relocate. Not to mention the additional costs of moving and furnishing your new home. Those household costs can be a huge and significant factor when considering whether downsizing is a better option.

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Another thing to think about is: how much will you be able to sell your home for in today’s market? It’s important to look at the overall financial picture instead of underestimating the costs of selling a house. There are expenses like the real estate agent’s commission (unless you decide to “For-Sale-By-Owner” or FSBO), real estate transfer taxes, loan payoffs, home warranty, among others. You might also be required to shell out a decent sum of money for necessary repairs before putting your property on the market, as well as for professional home staging services should you need to attract more buyers.

If you’ve owned your home for many years, you probably gained a lot of equity. This means selling your home could provide you a comfortable nest egg to put towards a smaller, cheaper home while still leaving some money to add to your savings and other future investments. But the difficult scenario is if you sell the home and the amount you receive is less than what you owe on the mortgage. When this happens, you will have to use your own money to make up the difference or risk a short sale. In other words, if you are in a negative equity position towards your home, you might have to put off your plans of downsizing for now and stick to your current house.

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It’s essential to figure out the optimal amount of living space that’s perfect for your situation. If your current home provides an ample amount of space needed for your work, hobbies, and completely accommodates the needs of your family, plus the fact that you can afford to stay and maintain it, then downsizing may still be a far-off idea for you.

But if, for example, you’re starting a new chapter of your life where your kids are already older and started moving out, you might not require all of the extra bedrooms. Besides, heating and maintaining the extra rooms can be costly. 

Moreover, think about your outdoor space. If creating a relaxing outdoor retreat or having a lush garden is important to you, it may be difficult to give up. But if maintaining your yard just feels like work, then you might consider moving to a condo or a low-maintenance property. Likewise, don’t forget to evaluate other things such as parking or garage space when you move, especially if you have two vehicles. 

When thinking about the pros and cons of downsizing, also note that an optimal floor plan is critical to maximizing space. There are many smaller houses with a significantly better floor plan, which could be the key to your happiness if you think moving is the right choice for you.

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Since you’ll have limited space when you downsize, you also need to deal with lesser stuff. This means paring down your possessions and only bringing the things you need instead of keeping all the things you love. And since letting go of your stuff can be an emotional ordeal, you might want to consider how attached you are to your possessions and whether you can part with many of the stuff you’ve accumulated and loved over the years.

Start by taking into account all of your stuff. If you are adamant about keeping most of it, you may want to consider moving later. Or you can opt to rent out storage space until you can figure out what treasures you want to keep, donate, and even sell. If you think sorting through your belongings can be a nightmare, some businesses can help you with the job. But if you find that going through your old stuff is liberating and it would feel great to dispose of the many things you’re holding onto for no reason, be prepared to come up with a plan so you can properly work out what you can and can’t take with you to your new home.

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There’s no hard and fast rule when it comes to downsizing. What may apply to you may not be suited for others, which means you only need to assess yourself and your situation before accomplishing the move. 

Start by considering your feelings. Are you ready to downsize? What are the things you’re looking forward to? If the thought of moving into a smaller home makes you excited because you’ll have extra time relaxing on the patio with your favorite book or drink, instead of cleaning bedrooms you rarely use or maintaining your outdoor space, then you are probably ready to downsize.

While moving into a smaller house has clear advantages, you’ll only realize how small it really is once you start looking, and you may find yourself comparing your potential home to what you’ve grown accustomed to. This is why it’s also helpful to create a list of pros and cons and make sure to carefully evaluate your family’s needs and future plans before you decide.

 

Bottom Line

This transition is far from easy, so don’t forget that it’s okay to be emotionally overwhelmed. After all, you’re moving from a home that you’ve built over the years to a new, smaller home where you need to adjust everything. Just remember that your goal is to simplify your life and hopefully to save for other bigger things in your life.

Why More People Are Buying Multi-Generational Homes Today

 

Why More People Are Buying Multi-Generational Homes Today

Today, 17% of homebuyers are choosing multi-generational homes — that’s when you buy a house with your parents, adult children, or even distant relatives. What makes that noteworthy is that 17% is actually the highest level ever recorded by the National Association of Realtors (NAR). But what’s driving the recent rise in multi-generational living?

Top Benefits of Choosing a Multi-Generational Home

In the past, homebuyers often opted for multi-generational homes to make it easier to care for their parents. And while that’s still a key reason, it’s not the only one. Right now, there’s another powerful motivator: affordability.

According to the latest data from NAR, cost savings are the main reason more people are choosing to live with family today.

The rising cost of homeownership is making it harder for many people to afford a home on their own. This has led to more families pooling their resources to make buying a home possible.

By combining incomes and sharing expenses like the mortgage, utility bills, and more, multi-generational living offers a way to overcome financial challenges that might otherwise put homeownership out of reach. As Rick Sharga, Founder and CEO at CJ Patrick Company, explains:

“There are a few ways to improve affordability, at least marginally. . . purchase a property with a family member — there are a growing number of multi-generational households across the country today, and affordability is one of the reasons for this.”

You may even find it helps you afford a bigger home than you would have been able to on your own. So, if you need more room, but can’t afford it with today’s rates and prices, this could be an option to still get the space you need.

On top of the financial benefits, it could also bring your family closer together and strengthen your bonds by getting more quality time together.

Bottom Line

If you’re considering a move, buying a multi-generational home might be worth exploring – especially if your budget is stretched too thin on your own.

Let’s discuss your needs and find a home that fits your family’s unique situation.

 

How To Determine if You’re Ready To Buy a Home

If you’re trying to decide if you’re ready to buy a home, there’s probably a lot on your mind. You’re thinking about your finances, today’s mortgage rates and home prices, the limited supply of homes for sale, and more. And, you’re juggling how all of those things will impact the choice you’ll make.

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.”

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 you’re ready to make your move.

1. Do You Have a Stable Job?

One thing to consider is how stable you feel your employment is. Buying a home is a big purchase, and you’re going to sign a home loan stating you’ll pay that loan back. That’s a big commitment. Knowing you have a reliable job and a steady stream of income coming in can help put your mind at ease when making such a large purchase.

2. Have You Figured Out What You Can Afford?

If you have reliable paychecks coming in, the next thing to figure out is what you can afford. That’ll depend on your spending habits, debt, and more. To be sure you have a good idea of what to expect from a number’s perspective, start by talking to 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 to anticipate, and other expenses you’ll want to budget for. That way you can make an informed decision about whether you’re ready to buy.

3. Do You Have an Emergency Fund?

Another key factor is whether you’ll have enough cash left over in case of an emergency. While that’s not fun to think about, it’s an important thing to consider. You don’t want to overextend on the house, and then not be able to weather a storm if one comes along. 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 involves some upfront expenses. And while you’ll get that money back (and more) as you gain equity, that process takes time. If you plan to move too soon, you may not recoup your investment. For example, if you’re looking to sell and move again in a year, it might not make sense to buy right now. As 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 plan to transfer to a new city with the upcoming promotion you’re working toward or you anticipate your loved ones will need you to move closer to take care of them, that’s something to factor in.

5. Above all else, the most important question to answer is: do you have a team of real estate professionals in place? 

If not, finding a trusted local agent and a lender is a good first step. The pros can talk you through your options and help you decide if you’re ready to take the plunge or if you have a few more things to get in order first.

Bottom Line

If you want to have a conversation about all the things you need to consider to determine if you’re ready to buy, let’s connect.

When Is the Perfect Time To Move?

When Is the Perfect Time To Move?

It’s easy to get caught up in the idea of waiting for the perfect moment to make your move – especially in today’s market. Maybe you’re holding out and hoping mortgage rates will drop, or that home prices will fall. But here’s what you need to realize: trying to time the market rarely works. And here’s why.

There is no perfect market.

No matter when you buy, there’s always some benefit and some sort of trade-off – and that’s not a bad thing. That’s just the reality of it. If you’re not sure you buy into that, think back to the last 5 years in housing.

Just a few years ago, mortgage rates hit a historic low. To take advantage of that, a ton of buyers rushed to buy a home and lock in those lower rates. The side effect? With such a big increase in how many buyers were purchasing, the homes on the market were snapped up fast. And since that resulted in so few homes left for sale, bidding wars became the norm and home prices went through the roof. Those buyers got a great rate, but they had other things to contend with.

Now, with higher rates and higher prices, it’s more expensive to buy. You can’t argue that. But at the same time, the number of homes for sale is at the highest point in several years. That means you have more options to choose from and you’ll be less likely to find yourself in a pull-out-all-the-stops bidding war. Again, there are benefits and trade-offs in any market.

So, if you have a reason to move and can afford to do so, you’ve got to take advantage of the trends that work in your favor and lean on a pro to help you navigate the rest. As Bankrate says:

“The complexities of the current conditions mean that, now more than ever, it’s smart to lean on the guidance of an experienced local real estate agent. If you want to enter the housing market in 2025, whether as a buyer or a seller, let a pro lead the way for you.”

While achieving your goals may feel like an uphill battle in today’s complex market, it is doable. But you’ll need the help of a trusted real estate agent and a lender.

Your agent will help you explore creative solutions – like looking into different housing types (like smaller condos), considering homes that need a little elbow grease, or casting a wider net for your search area. And your lender will walk you through different loan options and down payment assistance programs, so you know what you need to do to make the numbers work for you. As Yahoo Finance says:

“Buying a house at a time when both mortgage rates and home prices are favorable is a challenge. You probably shouldn’t try to time the housing market . . . Buy when it makes sense for you personally.”

Bottom Line

There’s no perfect time to move – every market has its pros and cons. The key is knowing how to make the most of the factors working in your favor. If you need to move and can afford to do it, let’s connect so you’ll have the guidance and tools to make it possible. 

2025 Housing Market Forecasts

Wondering what to expect when you buy or sell a home this year? Here’s what the experts say lies ahead. Mortgage rates are projected to come down slightly. Home prices are forecast to rise in most areas. And, there will be more homes available for sale. Want to know more about what this could mean for your plans this year? Let’s connect to discuss your 2025 goals.