Wants vs Needs When Buying a Home – Learning the Difference

One of the first questions that a real estate agent will ask new buyers is, “What do you want in
your new home”? It might seem like an easy question to answer but identifying your “wants’
from your “needs” is an important aspect of home seeking.

Needs
A need is something that is truly essential to how you and your family live. For instance, if you
have a family of four, you truly can’t live in a studio-style apartment; bedrooms become a real
need in house hunting. By contrast, while having an acre of land would be nice, do you truly
have to have that much space in your yard?

Make a List
One way to focus your thought is to create a list of features and amenities that you would like
to have in a new home. Prioritize this list starting with the essential (need) first and work your
way down to the aspects that would be nice to have (want). Remember that you might live in
this home for a number of years, so consider how your family will grow over the next few
years and what needs might change.

Think about elements outside the house itself as well. Do you have school aged children, or
will you? The location of the home might be a need as well. Commute times, recreation and
services must also be included in the list of priorities.

Home hunting is exciting; make sure you include your needs in your search so you don’t get
distracted by a want instead.

Posted on August 1, 2018 at 5:32 am
Ted Mansfield | Category: Buying a home, First Time Buyers, Move Up Buyers, Real Estate

4 Reasons Why Summer Is a Great Time to Buy a Home!

4 Reasons Why Summer Is a Great Time to Buy a Home! | Simplifying The Market

4 Reasons Why Summer Is a Great Time to Buy a Home!

Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Insights reports that home prices have appreciated by 7% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year.

Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have increased by half a percentage point already in 2018 to around 4.5%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by nearly a full percentage point by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You Are Paying a Mortgage

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Posted on June 4, 2018 at 10:59 am
Ted Mansfield | Category: Buying a home, First Time Buyers, Investment, Mortgage, Move Up Buyers, Real Estate

What Should You Look for In Your Real Estate Team?

What Should You Look for In Your Real Estate Team? | Simplifying The Market

What Should You Look for In Your Real Estate Team?

How do you select the members of your team who are going to help make your dream of owning a home a reality? What should you be looking for? How do you know if you’ve found the right agent or lender?

The most important characteristic that you should be looking for in your agent is someone who is going to take the time to really educate you on the choices available to you and your ability to buy in today’s market.

As the financial guru Dave Ramsey advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Do your research. Ask your friends and family for recommendations of professionals they’ve worked with in the past and have had good experiences with.

Look for members of your team who will be honest and trustworthy; after all, you will be trusting them to help you make one of the biggest financial decisions of your life.

Whether this is your first or fifth time buying a home, you want to make sure that you have an agent who is going to have the tough conversations with you, not just the easy ones. If your offer isn’t accepted by the seller, or they think that there may be something wrong with the home that you’ve fallen in love with, you would rather know what they think than make a costly mistake.

According to the Home Buyer and Seller Generational Trends Report:

Buyers from all generations primarily wanted their agent’s help to find the right home to purchase. Buyers were also looking for help to negotiate the terms of sale and to help with price negotiations.”Additionally, “Help understanding the purchase process was most beneficial to buyers 37 years and younger at 75 percent.”

Look for someone to invest in your family’s future with you. You want an agent who isn’t focused on the transaction but is instead focused on helping you understand the process while helping you find your dream home.

Bottom Line

In this world of Google searches, where it seems like all the answers are just a mouse-click away, you need an agent who is going to educate you and share the information that you need to know before you even know you need it.

Posted on April 3, 2018 at 9:00 pm
Ted Mansfield | Category: Buying a home, First Time Buyers, Investment, Luxury market, Mortgage, Move Up Buyers, Real Estate, Selling your home

The relation between interest rates and your purchasing power

Hoe does interest affect home buying power?

We all know that higher interest means higher payments. But what does that mean in real world numbers? The following infographic shows just that. A 1 point jump in interest basically means 10% less house when looking at a $700,000 house. The highlighted numbers in the table show what the same payment buys across a range of home prices.

What does it mean to me right now?

As we are foreseeing a slight bump in interest in the next year, you might want to consider making your jump now to get the most house you can.

Posted on February 23, 2018 at 10:52 am
Ted Mansfield | Category: Buying a home, Finance, First Time Buyers, Investment, Mortgage, Move Up Buyers, Real Estate, Uncategorized

The Mortgage Process: What You Need to Know [INFOGRAPHIC]

The Mortgage Process: What You Need to Know:
The Mortgage Process: What You Need to Know [INFOGRAPHIC] | Simplifying The Market

 

Some Highlights:

  • The Mortgage Process may seem complicated, but broken down into steps it becomes fairly straightforward.
  • Many buyers are purchasing a home with a down payment as little as 3%.
  • You may already qualify for a loan, even if you don’t have perfect credit.
  • Get pre-approved BEFORE looking or searching for homes.
  • Talk to your real estate professional for referrals to mortgage brokers and lenders they know and trust. Your Realtor is there for much more than just showing you homes.
  • Take advantage of the knowledge of your local professionals who are there to help you determine how much you can afford.
Posted on February 23, 2018 at 10:24 am
Ted Mansfield | Category: Buying a home, First Time Buyers, Mortgage, Move Up Buyers, Real Estate | Tagged , , , , ,