What’s Motivating Homeowners To Move Right Now
What’s Motivating Homeowners To Move Right Now Over the past few years, some homeowners have decided to delay their move because they don’t want to sell and take on a higher mortgage rate on their next home. Maybe you’re thinking the same thing. And honestly, that’s no surprise. It’s a very common roadblock and is one of the biggest factors that’s kept the number of homes on the market so low for so long. But a growing number of homeowners are deciding they just can’t wait any longer. Often, it’s because of personal or lifestyle change. As Redfin explains: “Some homeowners are opting to bite the bullet and give up their low rate in order to move. Many are selling because a major life event like a job change, or divorce . . .” If you’re weighing the decision to move, take a look at some of the top reasons others are choosing to sell. You might find those are reason enough for you to move now, too. It’s Time for a Change A new job in a different city, a desire to be closer to family, or simply wanting a change of scenery can all spark the need to sell. Let’s say you’ve landed a great job offer that requires relocating, listing your current home quickly may be the next logical step. There’s Just Not Enough Space in Your Current House Sometimes, your current home just doesn’t fit your lifestyle anymore. A growing family, the need for a home office, or more room for entertaining can all drive the decision to upgrade to a larger space. As an example, if you live in a condo and have a baby on the way, selling might be the next best move so you can find a larger home that suits your needs. Retirement or Wanting To Downsize On the flip side, some homeowners are ready to downsize. This could be due to children moving out, retirement, or simply wanting less to maintain. If you’re newly retired and dreaming of a simpler lifestyle, downsizing to a smaller home could free up both time and resources to enjoy this new chapter of life. Changes in Relationship Status Big changes like divorce, separation, or marriage often lead to a need for new living arrangements. If you just went through a divorce, selling the house you once shared may allow both of you to move forward and find a living situation that works better for you now. Health and Mobility Needs Health concerns, especially those that affect mobility, can also drive the decision to sell. A home that once worked well might no longer suit your needs. If this sounds like your experience right now, selling your current home to move into a more accessible space, or even using the proceeds for assisted living, could significantly improve your quality of life. Bottom Line Selling your home isn’t just about market conditions or mortgage rates—it’s also about making the best decision for your lifestyle and future. As Bankrate says: “Deciding whether it’s the right time to sell your home is a very personal choice. There are numerous important questions to consider, both financial and lifestyle-based . . . Your future plans and goals should be a significant part of the equation.” If a major life change has you thinking about moving, now might still be the right time to sell. Let’s connect so you have an expert to help you navigate the process.
The Majority of Veterans Are Unaware of a Key VA Loan Benefit
The Majority of Veterans Are Unaware of a Key VA Loan Benefit For over 79 years, Veterans Affairs (VA) home loans have helped countless Veterans achieve the dream of homeownership. But according to Veterans United, only 3 in 10 Veterans realize they may be able to buy a home without needing a down payment (see visual below): That’s why it’s so important for Veterans – and anyone who cares about a Veteran – to be aware of this valuable program. Knowing about the resources available can make the path to homeownership easier and keep life-changing plans from being put on hold. As Veterans United explains: “The ability to buy with 0% down is the signature advantage of this nearly 80-year-old benefit program. Eligible Veterans can buy as much house as they can afford, all without the need to spend years saving for a down payment.” The Advantages of VA Home Loans VA home loans are designed to make homeownership a reality for those who have served our country. These loans come with the following benefits according to the Department of Veterans Affairs: Options for No Down Payment: One of the biggest perks is that many Veterans can buy a home with no down payment at all, making it simpler to get started on your homebuying journey. Limited Closing Costs: With VA loans, there are limits on the types of closing costs Veterans have to pay. This helps keep more money in your pocket when you’re ready to finalize the sale. No Private Mortgage Insurance (PMI): Unlike many other loan types, VA loans don’t require PMI, even with lower down payments. This means lower monthly payments, which adds up to big savings over time. Your team of expert real estate professionals, including a local agent and a trusted lender, are the best resource to understand all the options and advantages available to help you achieve your homebuying goals. Bottom Line Owning a home is a key part of the American Dream, and VA home loans are a powerful benefit for those who’ve served our country. Let’s connect to make sure you have everything you need to make confident decisions in the housing market.
Why You Need an Agent to Set the Right Asking Price for Your Home
Why You Need an Agent to Set the Right Asking Price for Your Home Selling a home can be an exciting journey, but it also comes with challenges—especially when it comes to setting the right asking price. This task is crucial and often the most difficult part for sellers. According to recent studies, 58% of home sellers find setting the right price to be their biggest challenge, far more than understanding market demand, handling legal requirements, or negotiating with buyers. But why is setting the right price so hard, and why is it so important to get it right? Let’s dive in. The Challenges of Setting the Right Price When setting the asking price, sellers face a balancing act between overpricing and underpricing. Without an agent’s expertise, it’s easy to misjudge where your home falls in the market. Here’s a closer look at the risks involved: Overpriced ListingsHomes that are priced too high often turn buyers away. An overpriced property sits on the market longer, which can create a perception that something is wrong with the home. To re-ignite interest, sellers might need to reduce the price later, which could lead to less attractive offers and a prolonged selling process. Market ValueA home priced at market value attracts more buyers, increases the chance of multiple offers, and typically sells faster. This sweet spot is where a home is appealing and priced in a way that accurately reflects its value, based on the local market and similar homes in the area. Underpriced ListingsPricing a home too low can also backfire. While some may think this strategy will result in a quick sale, it can deter serious buyers who wonder if there’s a hidden problem. Additionally, it leaves money on the table and reduces your future buying power. Why Is Pricing So Important? Setting the right price is essential because it determines how buyers perceive your home. If your home is priced too high or too low, it affects buyer interest and, ultimately, your financial outcome. A knowledgeable agent will assess the fair market value in your area, ensuring that you maximize interest and minimize time on the market. An experienced agent understands that pricing a home correctly from the start will help attract the right buyers and increase the chances of a competitive offer. The Expertise of an Agent Makes the Difference Only a skilled real estate agent has the expertise to find that ideal market value sweet spot. They bring insights from similar homes, neighborhood trends, and their understanding of local demand. With their help, you’ll avoid the pitfalls of pricing your home incorrectly and capitalize on a well-positioned listing that attracts more buyers. In the words of Bankrate, "A knowledgeable agent will understand fair market value in your area, how much your house is worth, and how much you might reasonably expect to get for it in the current market." Let’s Get Your Home Priced Right Whether you’re planning to sell now or just exploring your options, connecting with a real estate agent can make all the difference. The right agent will help you set a price that’s competitive and appealing to buyers. Remember, if the price isn’t compelling, it’s not selling. If you’re ready to ensure your home is priced right, reach out. Together, we’ll make the most of your investment and get your home sold at its best value.
Renting vs. Buying: The Net Worth Gap You Need To See
Renting vs. Buying: The Net Worth Gap You Need To See Trying to decide between renting or buying a home? One key factor that could help you choose is just how much homeownership can grow your net worth. Every three years, the Federal Reserve Board shares a report called the Survey of Consumer Finances (SCF). It shows how much wealth homeowners and renters have – and the difference is significant. On average, a homeowner’s net worth is nearly 40 times higher than a renter’s. Check out the graph below to see the difference for yourself: Why Homeowner Wealth Is So High In the previous version of that report, the average homeowner’s net worth was about $255,000, while the average renter’s was just $6,300. That’s still a big gap. But in the most recent update, the spread got even bigger as homeowner wealth grew even more (see graph below): As the SCF report says: “. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.” One big reason why homeowner wealth shot up is home equity. Equity is the difference between your home’s value and what you owe on your mortgage. You gain equity by paying down your mortgage and when your home’s value goes up. Over the past few years, home prices have gone up a lot. That’s because there weren’t enough available homes for all the people who wanted one. This supply-demand imbalance pushed home prices up – and that translated into faster equity gains and even more net worth for homeowners. If you’re still torn between whether to rent or buy, here’s what you should know. While inventory has grown this year, in most places, there’s still not enough to go around. That’s why expert forecasts show prices are expected to go up again next year nationally. It’ll just be at a more moderate pace. While that’s not the sky-high appreciation we saw during the pandemic, it still means potential equity gains for you if you buy now. As Ksenia Potapov, Economist at First American, explains: “Despite the risk of volatility in the housing market, homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.” But prices and inventory are going to vary by area. So, lean on a local real estate agent. They’ll be able to give you the local trends and speak to the other financial and lifestyle benefits that come with owning a home. That crucial information will help you decide the best move for you right now. As Bankrate explains: “Deciding between renting and buying a home isn’t just about cost — the decision also involves long-term financial strategies and personal circumstances. If you’re on the fence about which is right for you, it may be helpful to speak with a local real estate agent who knows your market well. An experienced agent can help you weigh your options and make a more informed decision.” Bottom Line If you’re not sure if you should rent or buy, keep in mind that if you can make the numbers work, owning a home can really grow your wealth over time. And if homeownership feels out of reach, let’s connect so we can explore programs that may make buying possible.
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