First-Time Home Buyers Archives

September 15, 2023April 24, 2024

First-Time Homebuyers Guide: Your Path to Homeownership

Key Takeaways:

Timing Matters: The 2023 housing market has its unique rhythms, but with the right insights and team, first-time homebuyers can find their perfect moment to dive in.
Affordability Explored: Beyond the home’s price tag, factors like mortgage rates, credit scores, and additional costs paint the full picture of homeownership affordability.
Support on Your Journey: With the blend of innovative tech tools and dedicated real estate experts, navigating the 2023 market becomes a smoother and more confident experience.

Embracing the Real Estate Scene: First-Time Homebuyers’ Blueprint

realtor showing an expecting couple a home

Every year, countless individuals decide to take the leap into homeownership, and 2023 is no exception. Whether it’s the dream of escaping the cycle of renting, desiring a personal space to call your own, expanding a family, or viewing a home as a long-term investment, the motivations are as diverse as the buyers themselves.

Buying a home, especially for the first time, is a significant milestone filled with opportunities and challenges. With the 2023 real estate landscape as your backdrop, having the right knowledge in your toolkit and a dedicated team by your side can turn those challenges into triumphs. Here’s the lowdown on what you need to know to navigate this year’s market with confidence.

1. Timing is Everything: While there’s no one-size-fits-all answer, understanding local market trends can help you find that sweet spot for your purchase. We are constantly monitoring the market, ensuring you’re equipped with the latest insights.

2. Partner with Our Expert Team: We are more than just experts; we’re your dedicated partners in this journey. We offer you firsthand market insights, unwavering support, and a streamlined experience tailored to your needs.

3. Learn the Lingo: Any journey is easier if you can read the road signs. Check our our guide to some of the real estate terms you will encounter.

4. Stay Curious: Markets change. Dive into the latest news, explore neighborhoods, and keep that learning spirit alive.

Making Sense of the Money: Mortgage & Down Payment Insights For First-Time Homebuyers

a happy couple reviewing documents with agent

Navigating the financial side of buying a home in 2023 is all about understanding your options and finding what aligns with your goals. Here’s what you should know:

1. Mortgage Rates: It’s essential to find a rate that aligns with your long-term financial plan. We always recommend engaging with trusted lenders who can guide you through the process, ensuring you land on a rate that feels right for you.

2. Flexible Down Payments: The beauty of today’s market is its flexibility. You might find options that allow as little as 3% down. Remember, it’s about striking the right balance for your budget as first-time homebuyers.

3. Maximize Your Down Payment: If possible, consider putting down more initially. A larger down payment can reduce your monthly obligations and potentially get you a more favorable rate.

4. Leveraging Gifts and Assistance: There are avenues to bolster your down payment, whether it’s through generous family members or assistance programs. Every bit helps in kickstarting your path to homeownership.

Taking the Leap: Turning Your Homeownership Dream into Reality

The drive to own a home can be fueled by various motivations – be it the allure of leaving behind the uncertainties of renting, the desire for a dedicated family space, or seeing it as a tangible investment for the future. The 2023 housing market surely presents its unique nuances. But with good advice, careful planning, and a solid team on your side, those dreams can transform into realities. Owning your first home can be a smooth and rewarding journey when armed with the right tools and insights. We know the market intricacies, and that’s why we’re here: to guide you, answer any questions, and celebrate with you when those keys are in your hand.

Ready to make ‘house hunting’ a thing of the past? Move forward with confidence and let us show you the way. Get in touch today, and let’s bring your homeownership aspirations to life.

August 2, 2023June 18, 2024

Unlocking the Power of Millennial Buyers: A Guide for Home Sellers

Key Facts:

Understand the growing influence of millennial buyers in the real estate market.
Leverage a strong online presence to attract tech-savvy millennials to your property.
Showcase lifestyle benefits and adaptable home features to captivate millennial homebuyers.

Unlocking Millennial Homebuyer Opportunities

The millennial generation is rapidly emerging as a dominant force in home buying. There are incredible opportunities for us to tap into this growing demographic. We are thrilled to share how we can work together to effectively market your property to these dynamic and influential buyers.

Why Millennial Buyers Matter

Born between the early 1980s and the mid-1990s, millennials are the largest generation in the workforce today. Their preferences and lifestyle choices significantly impact the real estate market. Many have reached a stage where they are settling down, starting families, and looking for their dream homes. Understanding their desires and priorities is crucial for us as sellers aiming to maximize your home’s appeal to this vibrant demographic.

Embrace the Digital Realm

In today’s tech-driven world, a strong online presence is essential for reaching millennials. As your real estate agents, we’ll leverage cutting-edge marketing tools and social media platforms to showcase your property in the best light. With high-quality photos, we’ll ensure your home stands out among the digital crowd. We’ll craft compelling narratives around your property, ensuring that its unique features shine through the online medium, captivating potential buyers.

Highlight Lifestyle Benefits

millennial girl smiling at park with dogs

Millennials are looking for homes that align with their desired lifestyle. From emphasizing the proximity to trendy urban centers to showcasing local parks and recreational spots, we’ll paint a vivid picture of the experiences they can enjoy if they choose your home. Highlighting the neighborhood’s vibrant culture and convenient amenities will create a sense of belonging and allure for millennial buyers. We will help them envision their future in your property.

Create the Perfect Home Office Space

With remote work becoming the new normal, a dedicated home office space is highly appealing to millennial buyers. Strategically accentuate flexible workspaces in your home to cater to their evolving work-from-home needs. This will make your property a top choice. By showcasing the versatility of such spaces, we can demonstrate how your home is adaptable to their professional and personal lifestyles.

Harness Millennial Buyers for Your Home Sale

Selling your home to the millennial generation is an exciting endeavor, and we are here to be your trusted guides throughout the process. We bring expertise in digital marketing strategies, an in-depth understanding of millennial preferences, and the dedication to making your home appeal to this growing demographic. Together, let’s unlock the power of millennial buyers and position your property for success in the ever-evolving real estate market!

Are you ready to take the next step? Reach out to us today, and let’s create a winning marketing strategy that speaks directly to the hearts of millennial homebuyers!

An inviting garden and green-space is appealing to buyers of any generation.

July 1, 2023June 18, 2024

Unveiling the Best Timeline to Buy or Sell Your Home

Key Facts:

Personal circumstances such as rising rent, divorce, downsizing, or relocation often trigger the need to buy or sell a home.
A dedicated real estate team offers personalized guidance based on local trends and personal situations, making the buying or selling process more manageable.
Every real estate journey is unique, shaped by your dreams, your timeline, and your local market.

As each season unfolds, the narrative of the real estate market changes, stirring homeowners and buyers to contemplate: Is this the best time to buy or sell a house? While national news can paint a broad picture, the reality is often more nuanced and personal. Whether you’re dealing with rising rent costs, going through a divorce, needing to downsize, or facing a job relocation, your individual circumstances significantly influence your real estate decisions. Our expert real estate team is here to guide you through these personal and local considerations. Let’s dive deeper.

For Homeowners

Selling a home is more than a financial transaction; it’s a significant life event. It may be triggered by various circumstances – a growing family needing more space, a newly empty nest prompting a downsize, a job change requiring relocation, or a shift in your personal life like divorce. Timing it right is essential.

We’re here to offer personalized, data-driven advice tailored to your unique needs and circumstances. Our deep understanding of local trends and conditions empowers us to help you make informed decisions. Our goal is to help you sell your home at the right time for the maximum possible return, whatever your circumstances may be.

Reaching out to us allows you to:

Leverage our in-depth understanding of the local market
Obtain a professional, accurate valuation of your home
Get strategic advice on when and how to list your property for optimal results

For Buyers (First-Time and Seasoned Alike)

Whether you’re moving from renting to owning due to increasing rental costs, or you’re a seasoned home buyer looking for a change, the process of buying a home can seem daunting.

Our mission is to transform this journey into a seamless and enjoyable experience. We believe that the “right” time to buy a home is not a one-size-fits-all answer. Instead, it’s influenced by your financial readiness, personal circumstances, and local market conditions.

By choosing to work with us, you will:

Gain a clear understanding of the local real estate market, personalized to your timeline
Receive assistance in determining what you can afford, identifying areas that align with your lifestyle and budget
Be empowered to make decisions that cater to your specific homeownership goals

Embracing Your Unique Journey

Every homeowner, every buyer, every property, and every local market is unique, as are the personal circumstances that lead you to buy or sell a home. Our commitment as your trusted real estate team is to navigate these unique factors together with you. We strive to understand your goals and dreams deeply, and help you make the most informed decision on when to buy or sell a home.

Don’t let national averages or headlines determine your real estate decisions. Reach out to us today to discuss your specific circumstances, and let’s start your unique real estate journey together.

Your dreams, your timeline, your local market – these are the elements that should dictate your real estate choices. We’re here to make sure that they do.

Every buyer’s and seller’s timeline starts with the local real estate conditions.

June 15, 2023June 18, 2024

Embracing the Power of Homeownership: Celebrating National Homeownership Month

National Homeownership Month is here, and it’s a perfect time to celebrate the many joys and rewards of owning a home. As your dependable real estate team, we’re here to champion this significant month with you, providing the necessary guidance to make your homeownership journey a delightful experience.

In this blog, we discuss:

The benefits of knowing the value of your current home.
A roadmap for those aspiring to become homeowners.
Our commitment as a real estate team to make your journey to homeownership enjoyable and successful.

Homeowners: Unleashing the Power of Your Home

Know Your Home’s Value

As a homeowner, you form the backbone of our communities. Your home isn’t just a building – it’s the place where memories are made, lives are lived, and dreams are nurtured. During National Homeownership Month, we honor your contribution to the vitality of our neighborhoods.

Understanding your home’s worth offers several advantages:

Enables informed decisions on refinancing, home equity loans, or potential selling.
Helps you build a robust financial strategy around your most valuable asset.
Allows you to monitor and capitalize on market trends effectively.

As a dedicated real estate team, we offer complimentary home valuations. Reach out to us today to schedule your free home valuation and unlock your home’s potential.

Aspiring Homeowners: Make Your Homeownership Dreams a Reality

couple shaking hands with real estate agent

Your Dream, Our Commitment

If you’re looking to own a home, National Homeownership Month is an excellent opportunity to take your first steps towards this rewarding goal. Owning a home isn’t an exclusive privilege, it’s an achievable aspiration, thanks to numerous accessible programs for first-time homebuyers.

Embarking on the homeownership path can be an exciting adventure, especially with the right guidance. Here’s how our real estate team will guide you:

We’ll help you understand the range of financial options available, such as FHA loans, VA loans, and local down payment assistance programs.
Our experienced team will accompany you through each step of the process to help you find the perfect new home.

We believe everyone deserves to relish the happiness of homeownership. Contact us today to turn your dream into a reality.

In conclusion, as we observe National Homeownership Month, let’s remember that a home represents more than a physical structure. It’s a sanctuary of peace, a symbol of pride, and an essential element of our communities. Whether you already own a home or are looking forward to becoming a homeowner, we’re here to help you relish every moment of this rewarding journey. Happy National Homeownership Month!

On your journey towards homeownership, avoid these nine common pitfalls!

May 15, 2023June 18, 2024

How to Stop Renting and Become a First-Time Homebuyer

Key Takeaways:

Renting doesn’t help build a future
Homeownership can be accessible
Contact your trusted local agents for more on being a first-time homebuyer

Many renters discover a universal truth—renting can often feel like it lacks long-term benefits. However, each monthly rent payment potentially reduces a landlord’s mortgage while increasing their home equity. This revelation may inspire some to transition from renters to first-time homebuyers. If you’re contemplating this life-changing decision, now is an opportune time to consider buying a home.

Home purchase rates are currently favorable, and the appeal of escaping ever-increasing rental rates motivates many first-time buyers. Ready to join this progressive march towards homeownership? We are here to guide you through each step of the process. Here’s a simple guide to get you started on your homeownership journey.

Identify Your Ideal Location

Do you enjoy your current neighborhood? If you do, don’t assume that you can’t afford to buy in the same area simply because rental rates may be rising. In many cases, owning a home can be more affordable than renting, potentially allowing you to consider areas previously thought to be beyond your reach.

Once you’ve identified your preferred locales, let us know your chosen zip codes and specific preferences. We’ll compile a list of suitable properties for your personal viewing.

Examine Your Finances

Before embarking on your homeownership journey, take a comprehensive look at your financial situation. Here are some key steps:

Review your credit report and report any inaccuracies
Calculate your debts
Evaluate your savings and future saving capacity

Lenders consider your financial health when deciding on mortgage approval. As a renter now, can you afford the mortgage payment and additional costs comfortably? Keeping a debt-to-income ratio of less than 40% is generally advisable, as it widens your opportunities.

Assemble Necessary Documents

While reviewing your finances, gather these important documents for potential lenders:

W-2 and 1099 forms
Monthly bank statements
Asset statements
401(k), 403(b), mutual funds, stocks, bonds, and IRAs
Last two tax returns
Landlord reference

Choose the Right Lender

Securing a lender is a crucial step that should be undertaken early in the process. A lender can accurately determine what you can afford and offer valuable advice on improving your financial profile and selecting the best mortgage plan. Some lenders also offer specific incentives for first-time homebuyers.

If you’ve been renting and need recommendations for lenders, we can provide you with a list. Give us a call, and we’ll provide you with a list of lenders that may suit your needs.

Time Your Purchase Perfectly

Even when transitioning to homeownership, remember to fulfill the terms of your current lease. If it requires a 30-day notice of non-renewal, try to time your purchase so that your lease ends around the time you close on your new home. If the timing doesn’t align, consider discussing a month-to-month rental option with your landlord.

Embrace the Excitement of Homeownership

Stepping into the role of a first-time homebuyer is a thrilling milestone, and we’re delighted to be part of your journey. If you’ve considered buying a home, now is the time to act. Follow this guide and reach out to us for expert assistance in navigating the rewarding adventure of homeownership.

Learn more about first-time home ownership.

April 15, 2023June 18, 2024

Everything You Need to Know About Closing Costs

Key Takeaway:

Closing costs are a part of every real estate sale
There are many variables that determine the fees of a real estate transaction
Ask your local real estate expert for specifics

When you’re buying or selling a home, it’s important to understand what goes into closing costs. Closing costs are expenses and fees that need to be reconciled before the sale can be finalized. They typically include appraisal fees, survey fees, title costs, credit report fees, loan origination fees, underwriting costs, recording fees, and taxes. However, the specific costs may vary depending on your region and the terms of your contract. As your real estate professionals, we can provide you with a detailed breakdown of what will be included in your costs based on your specific situation.

How Much Are Closing Costs?

The amount you’ll pay can vary depending on factors such as the price of the home and the type of loan you’re using. On average, you can expect to pay around 2% to 5% of the purchase price of your new home. However, there are options for assistance. You may be eligible for homebuyer assistance programs or closing costs and down payment assistance from the U.S. Department of Housing and Urban Development (HUD). These programs can provide grants that do not need to be repaid or loans with manageable repayment plans. We can provide you with information about these programs and help you explore your options.

Who Pays Closing Costs?

It’s important to note that these fees are not solely the responsibility of buyers. Sellers may also have their own costs to cover, such as broker’s commissions, outstanding HOA fees, and property taxes. However, these costs can be negotiated, and we can guide you through the process of determining who pays what in the final contract.

Learn More

As your real estate professionals, we’re here to make the home buying or selling process as smooth as possible. We’re available to answer your questions, provide expert guidance, and ensure that you understand all aspects of the closing costs. If you’re ready to buy or sell a home, or if you have any questions about closing costs, please don’t hesitate to reach out to us. We’re here to help you achieve your real estate goals!

To learn more about the financial aspects of home buying, read our article on financial pitfalls to avoid.

December 15, 2021June 19, 2024

What to Expect in the 2022 Real Estate Market

Key Takeaways:

Many of the dynamics seen in 2021 will carry through into next year’s housing market, but at a much less frenzied pace.
As remote work becomes a more permanent, widespread option, Millennials are taking advantage and entering the real estate market.
We’re ready for another seller’s market. Like last year, there isn’t time to waste—contact us to start planning now!

What Buyers and Sellers Need to Know About the 2022 Housing Market

In the final few weeks of 2021, both home buyers and sellers look forward to what lies ahead in 2022. We can help build your strategy to stay competitive! Don’t wait for the real estate market to heat up during the spring and summer. Here’s what you need to know to get ahead of the competition next year.

First-time home buyers can overcome the challenging market

Recent real estate forecasts suggest that competitive will be the defining characteristic of the housing market throughout 2022. That will be especially true for first-time home buyers.

Competing levels of low inventory supply and high buyer demand will continue to hold housing market values at, or above, asking prices. Total inventory will increase by the end of 2022, but it will not be enough to slow the seller’s market.

For first-time home buyers to secure their house, they need to start early and expect competition. On a positive note, low interest rates can help new homeowners build equity faster.

Millennials are working remotely and finally buying homes

A lot has changed in these last two years. Buzzwords like “the new normal” were everywhere, along with speculations about how people lived, worked, and commuted were going to change. As we enter into 2022, we now have data reports and are beginning to see how these changes affect the housing market.

The ability to work remotely is helping the more than 45 million Millennials that make up the fastest growing segment of buyers. After an uphill battle, they’re entering the prime first-time home buying age range of 26 – 35, and changing the real estate landscape.

Millennials are leaving the glamor of big city life to take advantage of more affordable housing markets in suburbs and rural areas. As long as they have internet access, their salary remains the same. And unsurprisingly, 99% of them use technology to research the home buying market.

With 90% of managers and employees reporting that they’re happy working from home, and productivity increasing by as much as 47%, remote work is here to stay. The new normal will also create new investment opportunities as companies seek to reduce their office sizes.

Low inventory stretches into the new year

After years of underbuilding, housing supply shortages will continue to be a dominant feature of the market next year. One of the most significant factors that will carry over immediately from last year is low inventory supply.

Available housing will remain tight throughout the year. While that will generate some stress, it will also drive home values higher. Estimates of continued home sales growth will be 6.6%.

While housing inventory levels will remain lower than their pre-pandemic levels throughout 2022, a modest 0.3% growth in inventory should be enough to keep market prices from spiraling even further upward.

Sellers remain in control of the market

As we look ahead to 2022, some clear realities for the housing market begin to appear: it will remain a seller’s market. Interest rates continue to hover around a record-low 3%, providing incentives for sellers to upgrade to a larger home for a lower monthly payment.

After the refinance boom in 2020, homeowners are still in an advantageous position. With home sales expected to hit their highest level in 16 years due to Millennials entering the housing market, sellers sit in a very good position to profit. If accurately priced and, more importantly, if houses are in great condition with upgrades throughout, the real estate market will continue to be a boon for sellers.

Be Prepared for a Competitive Year

The new normal in 2022 turns out to be an old adage: the early bird gets the worm. We have the experience and can move quickly to make sure you stay competitive, regardless of whether you’re buying or selling. Contact us today to make your plan for the new year!

November 15, 2021December 20, 2024

From Boomers to Zoomers

Looking for advice? We’re here to offer some savvy real estate tips for every generation, from Gen Z to Baby Boomer.

Key Takeaways:

Buyers throughout all walks of life are wondering how to navigate today’s competitive housing market.
Whether you’re a Gen Z first-time buyer or a Baby Boomer looking to downsize, you should consider making a move to lock in your real estate goals.
Have questions about buying or selling? Contact us for personalized advice!

What Every Generation Should Know About Buying a Home

As older members of Gen Z reach home-buying age and Millennials make up the largest share of the housing market, buyers from every generation are wondering if now is the right time to make a move. Buying a home at any stage in life comes with its own unique challenges, so it’s crucial to consider your future and factor finances into your decision.

Gen Z: The New Buyers on the Block

If you’re part of Generation Z, you were probably born after 1997—and the oldest “Zoomers” are just now buying their first homes at 24 and 25. Even though most members of Gen Z aren’t quite ready to tackle homeownership, this socially conscious and highly educated generation is setting goals for themselves when it comes to real estate.

According to a new survey by Homes.com, over 85% of Gen Z plans to buy a home before turning 35. So if you’re a Zoomer, now is the perfect time to begin saving and paying off any debt. Start researching the home-buying process, learning about different loan options, and setting aside as much extra cash as possible to build up your down payment (spoiler alert: it doesn’t have to be the traditional 20%). And if you have any questions, don’t hesitate to speak with an agent…it’s okay if you aren’t quite ready to buy!

Millennials: The Market Trendsetters

Millennials—known for their love of pets and avocado toast—comprise a whopping 37% of today’s total home-buyers. And after witnessing the 2008 market crash, a pandemic, and now record-low interest rates, they’re finally ready to buy.

Compared to other generations, Millennials waited longer to buy their first homes. This surprising shift can be attributed to rising student debt, the Great Recession, as well as a dip in marriage and fertility rates. However, if you’re one of the many Millennials looking to ditch renting and start build equity, it’s worth doing a deep dive on mortgages before beginning your search. Even if you don’t have a traditional 20% down payment saved up, you could take advantage of government backed loans or assistance programs. Remember—knowing exactly what you can afford and getting pre-approved will up your chances of securing your perfect place.

Millennials aren’t just first-time buyers, either—many have also stepped into the role of first-time sellers. If you’re selling a home without much experience, it’s more important than ever to work with the right agent. Don’t be afraid to shop around and interview a few candidates before settling on “the one!”

Gen X: Making a Comeback

Gen X—classified as anyone born between 1965 and 1979—makes up around a quarter of today’s total buyers. And while they may not have the same momentum as Millennials, members of Gen X typically aren’t buying their first homes. In fact, many are looking to upgrade and purchase a home at a higher price point than any other generation.

Per a new survey by the National Association of Realtors, Gen X is the highest earning generation, and they tend to buy larger and more expensive homes to accommodate growing households. If you’re one of the many Gen Xers eager to upsize—perhaps even into a multigenerational home—you’ll want to take advantage of the equity you have in your current place. The right agent will be able to help you sell for top dollar and find a new house that checks all your boxes!

Baby Boomers: Downsizing…and Investing!

A Baby Boomer born between 1946 and 1964 now faces the reality of retiring and downsizing. This exciting season of life can come with a few challenges, as well as some unexpected opportunities! If you’re a Boomer considering a move to a smaller home, it’s crucial to examine the equity you have in your current property. The average Baby Boomer has stayed in the same home for around 15 years—and in that timeframe, home values have risen by 50% or far more depending on your area.

So, what should you do with all that extra money once you downsize to a more manageable house? Consider paying all cash for your new place, especially if you want sellers to notice (and accept!) your offer. And as you adjust to retirement, using that leftover equity to purchase an investment property could be an easy way to generate extra income.

Take Advantage of Today’s Once-in-a-Generation Market

No matter where you are in the home-buying process, it pays to work with the right agent. We’d love to help you achieve your buying and selling goals, or just answer any questions you have about today’s hot real estate market. Home prices are on the rise, mortgage rates remain low, and there’s never been a better time to make a move!

To focus in on another generation, read up on millennial buyers in our article: Unlocking the Power of Millennial Buyers.

November 1, 2021June 19, 2024

Here’s Why You Shouldn’t Wait Any Longer to Invest in Real Estate

Key Takeaways:

Even as home prices continue to climb, there’s never been a better time to get your foot in the door when it comes to real estate investing.
You don’t need a lot of money to diversify your portfolio—in fact, you have more options than you might think!
Whether you’re an experienced investor or a first-timer, you’ll want to work with the right agent to score a great deal.

What Buyers Need to Know About Real Estate Investing

Even if you haven’t bought or sold a house this year, you’ve probably heard wild predictions and statistics about the real estate market. As prices keep skyrocketing, would-be and experienced investors alike are wondering if now is the right time to add to their portfolios. Believe it or not, now might be a once-in-a-lifetime opportunity to purchase an income-generating property—and there are countless options from which to choose.

Still on the fence? Here are a few quick tips and tricks you need to know before investing in real estate.

Real estate investment isn’t only for the rich

Despite what popular shows on HGTV might tell you, real estate investing is something anyone can accomplish with careful planning and saving. You don’t even need any experience to get started—but having the help of a real estate agent will make all the difference.

Start by working with an agent who knows your local investment market. Based on your budget and goals, they’ll help you select a property that meets your needs and offers a high return on investment. Don’t just limit yourself to fixer-uppers—it’s worth considering land, single- or multi-family homes and condos, office space, or warehouses, too.

With a little sweat equity, you can easily turn any investment into an income-generating property that will help you pay off your mortgage. The easiest way to do this involves renting your property out to tenants. Over the last decade, the average rent has increased by more than 30%—so if you plan on keeping your property for a long time, you’ll be able to turn an impressive profit while building equity.

Mortgage rates remain low

One of the biggest mistakes that any investor can make is trying to time the market. While it may seem tempting to wait until a recession for prices to decrease, it’s impossible to predict how the market will fluctuate over time. And even as prices continue rising, you’ll want to factor low mortgage rates into the equation.

Lower mortgage rates make real estate investing more affordable. As of November 2021, the average 30-year fixed mortgage rate hovers around 3.4%, which is roughly a full percentage point lower than it was in 2018. Let’s put that into perspective—if you purchase a $400,000 property with a 20% down payment, you’d pay around $1,419 per month. But if you bought the same asset with a 4.4% rate, that monthly payment would skyrocket by more than $200, which adds up over time.

First-timers can start small

Even if you aren’t a current homeowner, real estate investing isn’t out of your reach. Some smart investors actually use their primary residence to generate extra money on the side. Once you establish a cash flow, you can start saving up for an even bigger investment down the line.

Wondering how you can start investing in real estate without a lot of capital? Real estate investment trusts (REITs) let you pool your money together with other investors and earn dividends, so you won’t have to buy or manage your own property. Many millennials have even tried “house hacking,” which involves buying a home and renting out rooms to offset a mortgage. And for an even simpler way to invest, consider land—some plots are available for just a few thousand dollars, and they’ll likely increase in value over time.

Work with Real Estate Investment Experts

Even if you already have a few assets under your belt, now is the time to diversify your investment portfolio! We have ample experience helping investors just like you, and we’d love to help you find an income-generating property that checks all the boxes.

Need to sell an investment property? We can certainly help with that, too!

August 1, 2021August 2, 2024

Your Comprehensive Guide to Picking the Perfect Neighborhood

Key Takeaways:

If you’re thinking about buying a home, it’s important to choose the right neighborhood, especially if you care about resale value.
Certain neighborhood features can increase your home value—and make you feel right at home in your new community.
When it comes to your home search, we have some features to keep in the forefront of your mind to make sure you pick the perfect (and most profitable) community!

Here’s What Affects Your Home Value Every Time

When it comes to your home search, finding a house in the ideal neighborhood is half the battle. Your future community is going to decide how close you are to nearby conveniences, what qualities your home possesses, and the people who are going to be your neighbors.

A home’s value is determined by how much prospective buyers in the market are willing to pay for your property, but we understand that each buyer is unique. While one buyer may prioritize nearby employment opportunities, another might place more weight on local entertainment or neighborhood amenities. However, property values are always impacted by one component—where they’re located.

If you’re on the hunt for your next neighborhood, consider this your step-by-step guide on how to pick the perfect community!

Location, location, location

You’ve probably heard this before, but it’s so important that we have to repeat it—location is everything when it comes to making a good investment in your next home. Think about it: typically, all the homes in a neighborhood, regardless of size or condition, fall within the same price range. Therefore, when it comes to valuing a property, location matters more than even the home’s characteristics.

When an appraiser is assigning a value to a property based on its location, they look at three primary factors—the reputation of local schools, employment opportunities, and proximity to entertainment. In addition to these factors, a home’s distance to everyday necessities, such as highways and public transit systems, play a crucial role in increasing its value.

Neighborhood amenities are must-haves for more value

What could be better than having a host of amenities available right outside your front door? Neighborhood niceties such as community clubhouses, golf courses, and pools are often at the top of buyers’ wishlists when searching for a new home. All these features and more foster a fun, inclusive environment of community involvement. Plus, a spacious clubhouse serves as the prime venue to host events that are sure to bring the neighborhood together!

In addition to a neighborhood’s current conveniences, you can research any future upgrades your community has coming through its digital planning documents. These documents should outline what improvements are planned for your neighborhood—like nearby shopping centers, schools, or parks—and when they’re going to be completed. Plus, it’s always a good idea to check and see if a neighborhood has a homeowners association. Your HOA will have a hand in maintaining and enhancing the community’s value over time.

Other conveniences you should consider…

At this point, you’ve probably considered some basic factors like nearby attractions, commute times, and all the amenities a neighborhood has to offer—but what about the everyday conveniences? To take your home search to the next level, you have to think about the seemingly small details. When evaluating your neighborhood’s location, cover your bases by mapping out the distances to the nearest medical centers, airports, and grocery stores—believe us, you’ll be thankful for this when you forget to buy eggs.

In terms of expenses, everyone has to pay utility bills, so you can save money by looking at who your local providers will be ahead of time. And speaking of planning, we recommend working with your agent to determine how your area’s property taxes will fit into your home-buying budget.

Ready to Find Your Perfect Fit?

All these features are things you should be on the lookout for during your home search—and remember, the surrounding community is equally as important as the individual home when it comes to finding your perfect fit. As your local real estate agents, we’d be happy to help you find your dream home in just the right neighborhood—all you have to do is give us a call!