How to Buy a Home in 2019
Looking to buy a house in 2019 or trying to decide if this is the right time for you? I understand that the housing market in 2019 has come with a lot of little quirks and that’s why I put this guide together to help you make the right decisions. Detailed below are some of the most pressing issues I have seen in the 2019 housing market and some of the solutions.
Housing Prices in 2019
The Problem: Housing Prices are More Expensive than Ever
Over the past couple of years housing prices have greatly outweighed income growth, making it very hard for people to buy their dream homes. This can be a critical issue for anyone trying to buy a home in 2019, luckily there is a way around this. Detailed below I have listed some solutions for this critical issue, along with some recommendations on what your next steps should be.
The Solution: Lower Down Payments
With the increase in home prices in 2019, most home buyers I meet are struggling to save up for a 20% down payment. What most home buyers don’t realize is that in this day in age, very few people actually put 20% down when they purchase their home. Instead most people put between 5%-10% down, and some people (who qualify) can even go as low as 0%.
To help you get inside your dream home without paying an arm and leg for your down payment, I recommend talking with a lender and our team about some of the common loan alternatives with traditionally low down payments. These include common loan alternatives such as a FHA and VA. There are even down payment assistance programs through sites such as your state’s housing finance agencies or other sites like down payment research. If you’d like to see what options are available for you, shoot an email over to [email protected] and we will help you discover what common loan alternatives works best for you.
The Problem: Tight Inventory
Over the past couple years inventory has fallen dramatically and luckily 2019 has been an exception. We currently have 4.2% higher inventory than we did last year at this time. To keep you ahead of the game, listed below are a couple techniques to keep you ahead of other buyers in 2019.
Solution #1: Buying a Fixer-Upper
Even though this may sound like a difficult option, there are a couple of reasons why this is a great one. See, by buying a house that is just below your price range, you can not only see an incredible return on your investment, but you can also customize all of the little details you’ve always wanted in your dream home. Just make sure the house doesn’t have any major red flags like a collapsing foundation, asbestos, or extensive water damage.
Solution #2: Look at Older Listings
A common misconception I see with home buyers is that they believe that any house that has been on the market for too long must have some major issues. Most of the time this isn’t the case. Typically what’s happened is that the seller has overpriced their home and has been reluctant to make any adjustments. When this mistake happens, a lot of buyers end up missing out on amazing homes, that could have been perfect for them with the right price negotiations.
Solution #3: Sneak Peeks
A lot of people don’t realize, but typically two to four weeks before houses hit the market, I receive a list of homes that are coming soon. For awhile, I would only let my closest clients receive the inside scoop on these houses, but I’ve decided to let a select few people take advantage of this special list of homes because I’ve seen a lot of people struggling to find “the one.” Remember, I don’t want everyone fighting over the same deals, so I’m only going to send this list to the first 10 people that request it. To request access to this list, shoot an email over to [email protected] with your name and a brief description of what you’re looking for in a home.
Solution #4: Find a Coach
If you are looking to make the best real estate investment possible, than you need to find a coach that can help you make the right decisions. Without the proper knowledge and evaluation techniques, you may end up purchasing a home that looked like a “perfect investment,” but later down the road realize it was a bad move. To combat this issue shoot an email over to [email protected] and let’s schedule a time to meet up over a cup of coffee to discuss how to find, analyze, and invest in the best deals possible.
Interest Rates are Rising
Problem: Interests Rates Are Still Rising
In 2019 we have experienced the highest interest rates in over 10 years, making this market with its somewhat tight inventory and expensive prices seem more costly to enter. Luckily, when we put things into perspective, our 2.5% interests rates seem like a doddle when we compare them to the 10.34% interest rates 30 years ago! Sadly these good times won’t last forever and interest rates are expected to reach new heights over the next couple years. Listed below are a couple solutions to combat this issue, along with some recommendations to make sure you don’t pay an arm and a leg in interest.
Solution: Lock in a Low Interest Rate Mortgage
One of the best solutions we have to take advantage of these historically low interest rates is to lock in a low interest rate mortgage before rates continue to rise. By doing so, you will be able to save yourself the pain of paying an arm and a leg in interest over the next 15-30 years.