Let’s face it. It’s 2018 and the term “There’s an app for that” rings very true. You can download apps to help you get a ride, have dinner delivered, or even check your health symptoms without ever actually speaking to another human being. For to sake of convenience these features are great but not when some of these tech trends try to creep into real estate.
Most of us can agree that simplifying some aspects of real estate would be a great thing but attempting to replace your real estate agent could lead to disaster. It’s true you can look on your phone or computer to search for a home or look up market data but at some point in your journey you will need a professional’s input.
The information you find online is just a simplified version of what actually goes in the process of buying or selling a home. Almost the same way that searching medical symptoms can give you a simplified description of illnesses but you are still expected to seek a doctor for treatment.
Although real estate agents and doctors are not the same thing, the industry and it’s legalities are similar because it needs to be taken seriously. Looking for a home and wanting to make an offer can be exciting but you will need a professional to help you with contacts and lead you to making that house your home.
Same if you want to sell your home! If you decide to put your home on the market, how will you know an offer that comes in is fair or not? It’s not just about the sale price of the home but the contracts that come into place after that. How will you know you are not being taken advantage of?
Once contracts fall apart, negotiations can’t be agreed on, and emotions are at an all time high you are going to wish you had an agent fighting for you by your side. So use the internet to take advantage of its amazing resources but don’t let it replace your agent.
Sometimes technology can’t do everything a professional can!
Finally ready to make the transition into home ownership? That’s awesome, and in this exciting time you can be turning to friends and family for insight into the process. However, there seems to be a circulation of misinformation spreading around, so I’m here to clear up a few myths.
1. THE FIRST STEP IS SEARCHING FOR A HOME
You know the saying, “Don’t put the cart before the horse,” well that’s important to remember when it comes to buying a home. You don’t want to start looking for a house until you have gotten to sit down with a lender and discuss what the bank will qualify you for. If you fall in love with a house that’s $350,000 and you’re only qualified for $300,000, you can get your hopes crushed and waste a lot of time. Don’t start the process on the wrong foot and make sure the numbers line up.
2. YOU DON’T NEED A REAL ESTATE AGENT
Having a real estate agent on your side means you’ll get to see homes that aren’t as readily available on public searches, you avoid outdated listings and scammers (there are lots of them), and you have protection when it comes to navigating the legalities of contracts and buying a home. Why wouldn’t you want an awesome negotiator working to ensure you get the best from the transaction?
3. YOU CAN’T BUY A HOME WITH BAD CREDIT
Fortunately for some, this is a myth. Lenders and banks come by the hundreds of thousands and all though there are a few loan options, a lot of lenders can work with credit scores down to the low to mid 500’s. Get in touch with an agent to help you connect with the right lender who can help you potentially approved. There is a lot of factors that go into approvals, but your credit doesn’t have to be a sore thumb during the process. However, you will be doing yourself a favor if you connect with a credit repair specialist to at least get those numbers in the 600’s. A better score will lower you interest rate.
4. YOUR DOWN PAYMENT HAS TO BE 20%
Think you have to sell an arm and a leg to buy a home? Not at all! An FHA loan only requires 3.5% while a conventional only requires 5%. There are a lot of programs that can potentially help you with down payment assistance or be 0% down mortgage. USDA and VA loans are the most popular 0% down programs. If you qualify, this can take a big chunk off the amount of cash you have to bring to the closing table. Talk to your lender about these programs and see what would work best for you!
5. DOWN PAYMENTS ARE THE ONLY UPFRONT COST
This is one of the biggest misconceptions. There is a lot of cost that goes into buying a home and that includes upfront costs. Home Inspections are just one of the costs that you will incur in the home buying process. In certain markets, some of the closing costs can be negotiated for sellers to cover by rolling into the offer price, but whether that decision is smart to do or not when it comes to landing your dream home will need to be discussed with your agent.
Now that you have some knowledge to get the process started, get in touch me and I can help you get through the process as smoothly as possible.
If you haven’t bought a home yet, you’re missing out on a wonderful feeling! That moment when you walk through your doors, throw your purse or keys on the floor, plop down on your couch and breathe a sigh of relief while thinking, “Finally, it’s ours (or mine)!” And the joy of looking at all of your boxes, getting to roll your eyes about why you buy so much stuff, then giving yourself a moment to take a nap because you worked hard to get here and earned it! Yes that’s a real feeling!
We often hear, and read, about the cost effectiveness of home ownership. The equity build-up, the freedom it can give us from finances in our retirement years, and a plethora of other ways owning a home can be a positive impact on your bottom dollar. But we don’t often hear about the emotional impact owning a home can have. Yes there will be days the fridge is acting silly and you need to call your home warranty, or days you have to get outside to mow your own yard, but nothing beats the pride and joy of owning a home.
There is a sense of security, and a sense of “this is mine and I worked my way up to this moment,” that provides moments of bliss. The ability to do with your home as you please, not pay a pretty penny for every member of your fur family, and the privacy it provides can’t be beat.
Home ownership also gives you the ability to put down some roots. And we mean that figuratively and literally. You get to build memories through the holidays and go through many milestones with your family, that leave a significant impact into the later years. You also get to build bonds with your neighbors, and grow in a community oriented neighborhood. With rentals, people come and go annually, but there are deeper roots planted with building relationships with those living next to you. Potlucks, 4th of July and New Year’s Eve spent lighting fireworks, and just the excitement of getting to know each other and build new relationships.
Buying a home isn’t about the dollars and cents for everyone, sometimes it’s just about the joy of owning your own place, and getting to build amazing memories in it. If you’ve been longing for this, get in touch with me, and make it happen. You owe it to yourself to make your dreams come true!
As you know the housing market in Oregon is growing strong. With this healthy growth are you worried about another housing bubble? Watch this video for Windermere’s Chief Economist’s view on the topic, the cause for the past bubble and how our economy today is different.