What Is the Best Time to Buy a House?

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Sure, you can consider market conditions. But when to buy a house is really all about you.

Timing determines so much when you’re buying a house. Although the best time to buy a house is when you’re ready both financially and emotionally, there are other factors that can help you decide when to buy a house.

By timing your purchase just right, you can nab a great home that’s just right for you.

What Is the Best Month to Buy a House?

Let’s make this clear: There’s no such thing as a guaranteed “best month” to purchase a home. (C’mon, we never said this would be easy!)

While some conventional wisdom says there is a best time of year to buy a house — during spring home buying season (April to June) — there are pluses and minuses when it comes to what month you choose to purchase a home.

(Note: Real estate is local. Determining a best time ultimately depends on conditions in your local market.)

Here we’ve outlined some of the reasons different months can turn out to be the best time to buy a house for you:

January to March. Winter isn’t such a bad time to buy a house. Though there’s less inventory — meaning there are fewer homes for sale — there are fewer home buyers too, so you have less competition. That means there’s a lower likelihood of a bidding war, which can be a stressful experience for home buyers. Another benefit of buying a house during the cold-weather months: Home prices are typically the lowest they’ll be all year.

Still, there are drawbacks to buying a house between January and March. Inclement weather can also be a challenge, since snow or ice could make it difficult to drive around and view homes or do a thorough home inspection of some elements, such as a roof.

April to June. Welcome to spring home buying season— the peak months for not only housing supply, but also the number of home buyers shopping for houses. Because most families want to move when the kids are out of school, there’s a big incentive to buy a house this time of year, since many home buyers need to allow 30 to 60 days for closing.

The warmer weather also makes open houses more enjoyable, landscaping easier to evaluate, and inspections more comprehensive.

Even though it’s generally regarded as the best time of year to buy a house, there are downsides to the spring market. For starters, you’ll face more competition from other home buyers —  meaning you have to move quickly when a great listing hits the market. Bidding wars are a lot more common, you tend to have less negotiating power, and home prices tend to tick up during spring.

July to September. If you can handle the heat (and a little competition), summer may be the one of the best times of year to buy. Now that the spring home buying craze is over, most home prices return to normal, allowing you to save some money. The sunniest time of the year also makes being outdoors and attending open houses more enjoyable.

The hot temperatures also give home buyers the opportunity to test how well a property’s air conditioning system holds up in warm weather, which is something they can’t usually test during other times of the year.

October to December. The main downside of buying a house in autumn is that there may not be as many homes for sale in the fall as there are in the spring. But it’s not like the market goes completely quiet.

Many home buyers consider fall the best time of year to buy a house because of price reductions. Because home sellers tend to list their homes in the spring, sellers whose houses haven’t sold yet may be motivated to find buyers, and prices start to reflect that.

Is 2019 a Good Year to Buy a House?

Economic forecasts vary every year, but waiting around for annual market fluctuations isn’t the best way to decide when to buy a house. The best year to buy a house is when you and anyone you intend to buy a house with are ready.

To help, complete this home buying worksheet with your home buying partner to help determine if now is the best time to buy a house you can reasonably afford in the location you want. Then take your worksheet to a REALTOR® and discuss your options.

Why doesn’t the year matter much? The housing market and your local real estate market do change, but they tend to change gradually. Even if waiting a couple of years for those factors to change can save you a bit of money, the bigger question is how much more money you could gain in equity by owning a home during those two years.

While everyone’s financial situation will be different deciding when to buy a house is mostly about the timing that is best for you, not when the market is perfect.

Are Interest Rates Good in 2019?

Many home buyers try to time the market by monitoring mortgage rate changes with the hopes of pouncing on a remarkably low rate. But interest rates are like the stock market — no one has a crystal ball that can accurately predict when rates will rise or fall.

Plus, what’s considered a good interest rate is relative. Interest rates today are low compared to what they were 20 to 30 years ago. Mortgage rates reached an all-time high of 18.45% in 1981, as the U.S. Federal Reserve drove up rates in an effort to counteract double-digital inflation. By the end of the 1980s, though, mortgage rates had finally crept below 10%.

Interest rates continued to decrease over the 1990s and 2000s. Today, mortgage rates are at historic lows.

Market interest rates are just one part of how affordable a house will be for you at any given time. Your credit score, for example, helps to determine the interest rate a mortgage lender will offer you.

Then, fluctuations in property taxes and homeowner’s insurance can affect overall home ownership costs as much as changes in interest rates can. So overall, current interest rates play a pretty small role in the best time to buy a house for you.

Does 2019’s Economy Support Home Buying?

Economic conditions are different from region to region and even from one ZIP code to another in the same city, so whether this year is the best time to buy a house can depend on where you are.

One tool you can use to assess the state of your local housing market is realtor.com®’s Market Hotness Index, which tracks home sales and home buyer activity across the country. In addition, the National Association of REALTORS® (NAR) measures monthly single-family home sales in the four major U.S. regions (Northeast, Midwest, South, and West).

Still, nothing beats having a savvy real estate agent in your corner to gauge the local market for the best time to buy a house. After all, the right agent knows your local housing market down to the neighborhoods — and can help you interpret the raw housing market data to help you time your home purchase well.

When Is the Best Time in Your Life to Buy a House?

There’s no magical age or life stage at which you’ll know for sure exactly when to buy a house. There are, however, a few factors you’ll want to take into account.

Finances. How’s your credit score? Can you afford to take on a monthly mortgage payment? Do you have enough cash to pay for a down payment and closing costs? Sit down with a mortgage lender who can help you evaluate your finances.

You’ll also need to budget for home maintenance expenses. One rule of thumb says homeowners should set aside 1% to 3% of their home’s purchase price a year for home maintenance and repairs. So, if your home cost $400,000, you’d set aside at least $4,000 annually. (Doing preventative maintenance, however, can go a long way toward staving off expensive repairs.)

Stability. If you’re on solid ground financially, with a stable job to support you, buying a home can be a way to lower your monthly housing costs (real talk: Owning is often cheaper than renting in some cities), gain a valuable financial asset, and, if you itemize, reap some tax benefits.

If you’re ready to commit to a home and city (and your job) for a few years, you’re probably in a stable enough situation to be a homeowner.

Lifestyle: Owning a house allows you to develop a strong relationship with a local community. Buying a home should align with your life goals. If you’re starting a family soon, planting your roots in a kid-friendly neighborhood with a great school district is usually a good reason to buy a house.

There’s also something to be said about the pride of owning a home and having a place you can call yours — one that you can customize to your heart’s desire.

Should You Buy or Rent?

To rent or to buy a home — it’s a common conundrum. Often this is the core financial decision potential home buyers wrestle with when deciding when to buy a house. To sort it out, start with your exit plan.

If you expect to be moving within the next couple of years, you probably should rent. Why? Because the general rule is it only makes sense to buy if you plan to stay in the home for at least two to three years.

Likewise, if you’re not ready to take on the maintenance responsibilities of being a homeowner, or aren’t ready to commit to a particular community right now, renting an apartment likely makes more sense than buying a home.

The local housing market is also a factor in the decision to buy or rent. In some cities, renting can be cheaper than owning, though price appreciation often brings wealth to buyers. Therefore, the financial benefits of owning a home and gaining equity over time is a better way to spend your money than forking it over to a landlord.

Investing vs. Living

The best time to buy a house for the first time is generally when you’re ready to live there long term. Long term, real estate can be a lucrative path towards financial success, particularly if you can nab a low interest rate in the right housing market.

But a lot of factors go into whether buying an investment property is the right move for you, including how much risk you can tolerate and the local economy.

Generally, it’s smart to consider your first home purchase all about you. It’s about investing in a place you can make your own and live your life day to day.

The moral? There’s nothing quite like home ownership. While not everyone is ready for it, if you’ve determined the best time to buy a house is right now, it can be the beginning of the most satisfying journey of your life.

Have any questions or are you ready to start your new home search in 2019? Give us a call today!  Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com

By: Daniel Bortz / Originally Published: April 18, 2019

7 Reasons to Work With a REALTOR®

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REALTORS® aren’t just agents. They’re professional members of the National Association of REALTORS® and subscribe to its strict code of ethics. This is the REALTOR® difference for home buyers:

  1. Ethical treatment.
    Every REALTOR® must adhere to a strict code of ethics, which is based on professionalism and protection of the public. As a REALTOR®’s client, you can expect honest and ethical treatment in all transaction-related matters. The first obligation is to you, the client.
  2. An expert guide.
    Buying a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language.
  3. Objective information and opinions.
    REALTORS® can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. REALTORs® can use that data to help you determine if the property has what you need. By understanding both your needs and search area, they can also point out neighborhoods you don’t know much about but that might suit your needs better than you’d thought.
  4. Expanded search power.
    Sometimes properties are available but not actively advertised. A REALTOR® can help you find opportunities not listed on home search sites and can help you avoid out-of-date listings that might be showing up as available online but are no longer on the market.
  5. Negotiation knowledge.
    There are many factors up for discussion in a deal. A REALTOR® will look at every angle from your perspective, including crafting a purchase agreement that allows enough time for you to complete inspections and investigations of the property before you are bound to complete the purchase.
  6. Up-to-date experience.
    Most people buy only a few homes in their lifetime, usually with quite a few years in between each purchase. Even if you’ve done it before, laws and regulations change. REALTORS® handle hundreds of transactions over the course of their career.
  7. Your rock during emotional moments.
    A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.

The Hanley Home Team would love to work with you!! Have any questions? Give us a call today!  Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com

 

Upsizing your home

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Unfortunately, our homes don’t always grow with us. What may have initially worked fine for a single person, a young couple’s starter home, or a family with a newborn can quickly become too small as families expand and multiple generations live under one roof.

Remodeling and adding to your home is one option for creating more space, but it can be costly, and the size of your property may be prohibitive. That’s when moving to a bigger home becomes the best solution.

WHERE DO YOU NEED MORE SPACE?

The first thought when upsizing your home is to simply consider square footage, bedrooms, and bathrooms. But it’s important to take a more critical approach to how your space will actually be used. If you have younger children (or possibly more on the way), then focusing on bedrooms and bathrooms makes sense. But if your children are closer to heading off to college or starting their own families, it may be better to prioritize group spaces like the kitchen, dining room, living room, and outdoor space—it’ll pay off during the holidays or summer vacations, when everyone is coming to visit for big gatherings.

MOVING OUTWARD

If you need more space, but don’t necessarily want a more expensive home, you can probably get a lot more house for your money if you move a little further from a city center. While the walkability and short commutes of a dense neighborhood or condo are hard to leave beyond, your lifestyle—and preferences for hosting Thanksgiving, barbecues, and birthdays—might mean that a spacious home in the suburbs makes the most sense. It’s your best option for upsizing while avoiding a heftier price tag.


Have any questions or are you ready to start your new home search in 2019? Give us a call today!  Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com

Which down payment strategy is right for you?

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You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.

But there can actually be financial benefits to putting down a small down payment—as low as three percent—rather than parting with so much cash up front, even if you have the money available.

THE DOWNSIDE

The downsides of a small down payment are pretty well known. You’ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.

THE UPSIDE

The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.

THE HAPPY MEDIUM

Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.

Have any questions or are you ready to start your new home search in 2019? Give us a call today!  Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com

 

 

HOA Drama and Other Issues Buyers Wish They’d Considered Before the Deal Closed

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 | Sep 6, 2019 |Terri Williams is a journalist who has written for USA Today, Yahoo, the Economist, U.S. News and World Report, and the Houston Chronicle. Follow @Territoryone

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Being a first-time home buyer is exciting. After you finish signing a gazillion documents and the keys are finally placed in your hands, there’s an undeniable sense of accomplishment and pride. However, not long thereafter, buyer’s remorse can set in. New buyers might wonder if they made the right decision or if there were warning signs that they missed—or outright ignored.

Everyone hopes that life after closing on a house will be smooth sailing, but some unsuspecting buyers end up in turbulent waters. The following anecdotes outline missteps that first-time home buyers can make and, most importantly, how to identify those red flags before you’re locked into the sale.

No room to grow

Many of the first-time homeowners Chicago-based real estate agent Jonathan Self speaks to say that they underestimated how much space they would need.

“The family expanded faster than they had planned, and they now need to move without owning the house for enough time to reap any benefit of price appreciation,” he says. “Life happens, but you want to make sure you’ve had four to five years minimum in the home at the normal rate of appreciation—and that’s just to break even.”

To avoid having to move because of a lack of space, buyers should ask themselves the following questions: Is the size of your family going to change? Is there a chance an older family member will need to move in with you? Do you have space for a dog, if you want one?

Some first-time homeowners get tripped up by perfectly staged homes.

“Finding the right home isn’t just the sexy, fun stuff like finish selections,” Self says. That’s why you need to consider how much space you and your family will really need down the road so you can stay put.

HOA drama

First-time homeowners would do well to understand the pros and cons of a homeowners association before moving into an area that has one. That’s why Self goes as far as going through the HOA’s meeting minutes with his clients who are considering living in one of these communities.

“Neighbors are always an X factor, and as agents, we do what we can to investigate. But your best bet at spotting any internal HOA drama is to check out those meeting minutes and budget line items,” he says.

A lack of HOA meeting minutes or transparency with the budget is also a big red flag.

Becky Beach, a business owner and blogger at MomBeach.com in Austin, TX, says her HOA dues are $500, but a lack of communication means she and the other homeowners do not know what the money is going toward.

Living in a community with an HOA suits many buyers, but you want to know what you’re in for before signing on the dotted line.

Rushed to buy a home

Aleka Shunk, founder of the blog Bite Sized Kitchen, warns first-time home buyers against a hasty home purchase like the one she made.

While searching for a home in New Jersey, one of her friends sent a flyer from neighbors looking to sell their home. The Shunks loved the home and the area, and the highly motivated sellers wanted to move within six weeks. One of the sellers was an agent, and preferred that the Shunks didn’t use an agent on their behalf—and also said the home would be sold as is.

“I found a local inspector who said there were a few small problems, but overall the house was in good shape,” Shunk says. “I also hired a lawyer to handle the legalities.”

However, a few months after moving, the problems started.

“I woke up to no water in the bathroom faucet, and then a neighbor informed me that the water was gushing down the driveway,” Shunk says. Water was flowing from the ceiling in both the garage and living room. After a week of frigid temperatures, two pipes burst—to the tune of $40,000 in water damage. The cause of all of these problems? There was little to no insulation throughout the house.

“We were just so excited and could not wait to get into our own home,” Shunk says. “However, because we rushed, we did not have time to ask many questions.”

It took three months to fix all of the damage, and the family is saving up enough money to properly insulate the house. The lesson: Don’t rush into buying a home, and always get a second opinion.

DIY real estate transaction

Many buyers—first-time or not—underestimate the value of having a real estate agent represent them. You may be capable of combing through online listings, but navigating the negotiations, paperwork, and legal stipulations that arise during a real estate deal requires experience.

“This is a big transaction, therefore, it is very helpful to have another qualified person speak and deal on your behalf,” says Mark Cianciulli, a real estate broker and founder of The Crem Group in Long Beach, CA.

For example, he says, even a home being sold as is can be negotiated—especially one like the Shunks’ that came with major problems.

“Because we did not use an agent, we did not know the right questions to ask,” Shunk says. “What does ‘as is’ even mean?”

While she did use a lawyer and got a home inspection, Shunk says she trusted the seller to ensure that everything was taken care of.

HP_logo.pngGive us a call today!  Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com

The City Of Jacksonville’s 2019-2020 Preparedness Guide Is Now Available!

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In an emergency, every second counts. Planning what to do before a disaster strikes provides the best protection for you and your family.

The 2019-2020 Emergency Preparedness Guide is your one-stop resource to help you and your family stay safe in a storm, fire, flood, tornado, or hurricane. This guide offers information regarding  what to do before, during, and after an emergency situation.

Plan ahead and don’t be caught unaware. Know the hazards, make a disaster plan with your family, and assemble an emergency supply kit. Take time now to learn more about designated shelters and identify your best sources for up-to-date emergency information.

Don’t just be ready, be JaxReady!

Read and download the guide.

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Brought to you by: Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com

Consider this: When to refinance?!

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Refinancing your mortgage is something most homeowners consider at least once throughout the lifespan of their home loan. It allows you to pay off your previous loan by applying for a new one that has better financial advantages. While there are many good reasons to refinance, here are five common ones.

  • Scoring a lower interest rate. The number one reason homeowners decide to refinance is to secure a lower interest rate on their mortgage. Not only does this save you money in the long run and decrease your monthly payment, but you can start building equity in your home sooner.
  • Using an improved credit score. Even if interest rates have not dropped in the market, if you’ve improved your credit score over the last few years, you may be able to reduce your mortgage rate.
  • Shortening the loan’s term. If interest rates are decreasing, there is a chance you may be able to get a shorter loan term with little to no change in your monthly payment, allowing you to pay off your loan sooner.
  • Switching from an adjustable rate to a fixed rate. If you chose an adjustable-rate mortgage with great introductory rates when you initially financed your home, that rate may increase significantly over the years. By switching to a fixed rate while interest rates are low, you can protect yourself from future increases.
  • Cashing out home equity. If there is a big purchase or payment on the horizon, such as funding a wedding or going back to school, your best option may be to use the equity you’ve built in your home to borrow money at a lower cost.

Give us a call today!  Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com

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Must-Have tools for Homeowners!

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When you own your home, things are going to break and, unless you want to spend your money on visits from a neighborhood handyman, you’re going to need to fix them yourself. Luckily, you don’t need an arsenal of tools to handle most home maintenance fixes. These five tools will cover most of your basic projects.

  1. Cordless drill. A cordless drill is a must-have for installing cabinets, drawer pulls, hinges, picture frames, shelves and hooks, and more. Whether it’s for do-it-yourself projects or repairs, you’ll use your cordless drill just about every month.
  2. Drain cleaners. Shower and bathroom sink drains are susceptible to clogs because of the daily buildup of hair and whisker clippings. You can use chemical clog removers like Drano, but they’re expensive and the lingering chemical scent is unpleasant. Instead, buy some plastic drain cleaners that can reach into the drain to pull out the clog of hair and gunk. You can purchase them on Amazon or at a local hardware store for a low price.
  3. Shop-vac. No matter how careful you are, spills and accidents will happen and there are some tasks that just can’t be handled with paper towels or a standard vacuum, like pet messes or broken glass.
  4. Loppers. Even the minimum amount of care for your landscaping will require some loppers to remove damaged branches, vines, thick weeds, and any other unruly plants in your yard.
  5. Flashlight. You’re going to want something a little more powerful than your iPhone flashlight when you’re in the crawlspace!

Give us a call today!  Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside 904-515-2479

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10 Tips to Prepare for Back to School brought to you by the Jacksonville Public Library.

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While the heat may not be winding down, the summer freedom is. That means it’s time for school supply shopping trips, earlier bed times, and the dread of homework to come. Heading back to school doesn’t have to be stressful though. Follow these tips to make your life easier come the dreaded first week back.

  1. If your kids are not already participating in Summer Learning, encourage them to read at least one age appropriate book before school starts.
  2. Make sure your student has their most valuable school supply item, their library card. The Jacksonville Public Library Duval County Public Schools (DCPS) student card program has been extended this year to include all students grade K-12! Their DCPS ID card can be used as their library card. Check out our website for more information about the student card. Not a DCPS student? No problem. If your child is age 17 and younger, they could qualify to get a juvenile card.
  3. Familiarize yourself with the online homework and tutoring help the library offers.

    brainfuse_logo_150pxYour library card gets you admittance to more than just physical materials. Unlock access to research databasesfor school papers, Brainfuse HelpNow for homework and tutoring, ebooks, and much more!

  4. To save money, take advantage of Tax Free Weekend, August 2-6.
  5. Print out your school’s supply list and inventory school supplies from previous years before shopping for new supplies.
  6. Visit educational and local attractions to get your kids excited about learning again. Tour places like the library (duh!), the Cummer Museum and Gardens, The Museum of Science and History (MOSH), and other cultural attractions.
  7. Get your kids ready for their normal “school night” bed times by starting the routine two weeks before the first day of school. Check out these recommended hours of sleep per age group from WebMD.
  8. Have a discussion with your children about what they should expect on the first day so they feel more prepared.
  9. Look up the school lunch schedule ahead of time and discuss the healthy options with your children.
  10. Remove distractions like mobile devices and games from your child’s room to help them get a good night’s sleep.

Whether you’re dreading back to school or welcoming it, being prepared is always a sanity saver. Now if only we could come up with tips to guarantee kids will be out of bed, fed, and dropped off on time! Here’s to another successful school year, good luck.

Have any questions or are you ready to start your new home search in 2019? Give us a call today!  Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside 904-515-2479 http://www.HanleyHomeTeam.com