How to Know Whether to Rent or Buy

Should you rent or buy? The answer depends on your situation.

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Are you better off renting or buying?

There are certain situations where you’re better off renting. For example, if you’re moving to an area you only plan on staying in for a few years, you should rent. If you’re moving to an area you plan on staying in for longer than three years, you should buy.

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You guarantee that you’ll lose money in the long term by renting, and you guarantee that you’ll gain money in the long term by buying.

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I know people worry about the ups and downs of the real estate market, or whether they’ll lose money when they have to sell later on, but here’s the thing: In the long term, homeownership normally trends upward. If, on the other hand, you rent for three years at $2,000 a month, you only guarantee a loss of $72,000. It’s very rare to lose $72,000 by buying a home in the Triangle area.

Think of it this way: You guarantee that you’ll lose money in the long term by renting, and you guarantee that you’ll gain money in the long term by buying. It all depends on your timeline.

If you’d like to talk more about this topic or have any questions, don’t hesitate to reach out to me. I’d love to help you.

Homebuyers: Follow These 4 Tips During Your Final Walk-Through

When the time for your final walk-through arrives, following these four tips will help the experience go smoothly.

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The final walk-through is a critical step in the real estate process, but many buyers aren’t sure exactly why this is or what they should look for when they enter the property for the last time before closing.

Ultimately, the final walk-through is designed to help buyers verify that the home is in the same condition it was when they made their offer and that the agreed-upon repairs have been made.

In order to ensure your final walk-through goes smoothly, keep these four tips in mind:

1. Don’t schedule the final walk-through on the same day as closing. Doing this could make it difficult to fix any issues you find in the event that the home is not in the condition you expected.

2. Bring along your phone and its charger to test the outlets. Plug your phone into every last outlet. This simple trick will help you to verify that they are all in working order.

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If you made your offer on a staged home, you should expect the vacant version to look very different.

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3. Look for any belongings the seller left behind. Sometimes, items are abandoned on accident. Other times, the seller simply wanted to ditch their unwanted items with the hope you wouldn’t notice until after closing. Either way, you don’t want to be left dealing with the seller’s junk.

4. Be emotionally prepared for surprises. If you made your offer on a staged home, you should expect the vacant version to look very different. Staging can hide certain cosmetic problems, like scratches or dents, and can totally transform a home.

As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What Homebuyers Can Learn From Our 2017 Market

What can 2017 teach us about purchasing a house in 2018? Here are five very valuable takeaways.

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There are five lessons homebuyers can learn about our 2018 market by looking back on what happened in 2017.  

First, homes are still lower than their pre-recession peak prices. There are some exceptions in major cities like San Francisco and Denver, but there are still a lot of great deals out there and there is still some value we’re looking to get to in the next couple years.

Second, homes are selling quickly. On average, homes spend 45 to 60 days on our market, depending on price range and area. There is a very low supply of homes and a very high demand, so make sure you have an agent representing you who can put you at an advantage in finding the best deal possible.

Third, investors are everywhere. If you’re looking to invest in a property, make sure you’re ready to put your best offer forward. Again, having an agent such as myself by your side can help you prepare your proof of funds, have your purchase agreement ready to go right after you see a property you like, and make sure you pay the amount you should be paying considering you might be in a multiple offer situation.

Make sure you have an agent representing you who can put you at an advantage in finding the best deal possible.

Fourth, more deals were falling apart than ever before in 2017 because of things like mortgage and inspection issues, so when you’re ready to buy, know that you can negotiate inspections in your favor. Also, make sure you have your mortgage information ready and you’re pre-approved with a solid, qualified lender so you have the best chance possible at closing on the deal.

Finally, buying still saves over renting. People ask me all the time whether they should rent or buy. If you look at the national average of rental rates, you’ll see that they’re up across the entire country. This means in most markets, it would cost you more to pay rent than it would to buy a home.

For example, if you buy a $200,000 home in the Cleveland market, your monthly mortgage payment would be $800. By comparison, renting that same house at current rental rates would cost you as much as $2,000 per month. Essentially, you’d save as much as $1,200 per month by buying.

If you have any other questions about our market in 2018 or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.

4 Key Things to Remember Before Closing

There are four key things you need to remember before closing. Being prepared could be the difference between success and a broken deal.

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So you’ve made it to closing. The inspections and repairs are complete, insurance is ready to go, and all of the details seem to be taken care of. In actuality, though, there are four things you need to think about before closing.

First of all, remember to schedule and confirm your closing date and time. Closing can’t take place if you and the other people involved aren’t both aware of exactly when to meet and sign the final papers.

Make sure you allow for plenty of time for closing, as well. Don’t just use your lunch hour to sign the papers. If you don’t already have the day off, take a half or full day from work to give yourself some leeway. Things could come up and if they do, you wouldn’t want to have to rush.

Next, don’t forget to complete a final walkthrough. Even if a home was in perfect condition before, damage could have occurred since the last time you saw it. Schedule this walkthrough several days in advance and be prepared to negotiate if something is wrong.

Always come to the closing table completely prepared.

Third, remember to bring any and all documents with you to the closing table. Everything that you have, even if you think you won’t need them, should be brought along with you. Make sure you bring a certified check. You should always come to the closing table completely prepared.

Finally, you should always be aware of what could go wrong. A lender could pull out of the deal at the last minute. This could be for a number of reasons. Things like recent credit card debt or job loss could break the deal.

Being prepared and staying consistent until after closing is complete is critical to your success. Whether you are a buyer or seller, you need to know exactly what will be required from you at closing. Additionally, liens on the property will almost always be discovered, so make your title company aware well in advance.

If you have any questions about closing on a home or you're thinking about buying or selling a home, don't hesitate to reach out to us. We'd be happy to help you.