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If you're in the market for a new home or just paying attention to the real estate trends these days, there is a lot of noise out there. We know that buying a home is one of the most impactful events in someone's life and it should be treated as such. 

With that said, if you are considering a move, it's important to take a step back and evaluate your "why." Each person looking for a new home has their own version of why they are looking to improve their current situation. Our team at Bill Clark Homes takes pride in learning what those motivations are and providing assistance to match the right home with the right family. When both parties are working towards the same goal - Finding the Perfect Home - it can be a very rewarding experience. 

Now, back to the "noise." What are we hearing these days? 

• I want to wait until interest rates come down. 
• Prices are too high, I want to wait until they come down. 
• We will start looking in a couple of years.
• We want to relocate after we retire. 

Let's talk FACTS. 

Interest Rates: You may have heard the expression "Date the Rate, Marry the House!" or something similar. Well, there is truth in this statement. If we go back to the 1980's, interest rates hit a whopping 18% for home mortgages. Our current mortgage rates have risen over the last 2 years but 7-8% is still manageable and there are other factors to consider. Did you know that there are options to buy down an interest rate? Most lenders are currently offering two options, 1) A permanent buydown, where you "buy points" at closing. This will increase the amount of money you put down, but it will decrease your monthly mortgage costs. 2) A variable buydown, this is often referred to based on the years and the rates such as a 2-1 Buydown. This option appeals to many buyers because it's flexible. The lender will set aside a specific amount of money at closing that will then supplement the homeowner's mortgage payment each month to reduce the amount owed. Unlike the permanent buydown where the upfront cash is lost, if you refinance this option prior to the end of the supplement funds, the remainder can be used by the homeowner.

Supply & Demand: The National Association of Realtors actually has a Housing Shortage Tracker on their website that computes how many new building permits are issued for every 2 new jobs. This is important information, when the supply is low, it keeps the pricing higher - across the board. If everyone could time it perfectly, what would they do? ... of course... sell high and buy low! However, it rarely works out that way. So what does a housing shortage mean for you if you're looking? 1) You could potentially get top dollar for your current home.  2) You need to be prepared to make a move immediately if you find the right home. 3) If you know there are obstacles in timing, you need to make temporary arrangements to get to your next step. ex: Sell your current home to position yourself as an eligible buyer and be prepared to rent in the interim. 4) Consider buying new because builders often have more flexibility with multiple properties and can offer solutions for different situations. 

Timeline to Buy: Our team works with homebuyers who want to move in 30 days as well as clients who may be considering a move in 5 years. One of the most important questions we like to ask is... What are you waiting for? And the answer is different for everyone. But if life teaches us anything, it is that we cannot predict the future. And if you are looking to make an improvement in your home, in your location, in your community, or in your living situation, what is the cost of waiting? Are you going to spend the next 5 years longing for a life that you hope to have? Or is fear of the unknown or fear of the uncomfortable standing in your way? When we have clients who are hesitant to take the first step but they know they want to eventually, we encourage them to do the following. 1) Talk to one of our Professional Lending Partners. These are industry experts who have years of experience assisting clients make these dreams a reality. They can take a look at your current situation and offer suggestions you haven't even considered to potentially speed up your timeline or provide creative opportunities to buy sooner. 2) Start the evaluation process of your current home. If you need to sell, you may not know the true value of your existing property and it could open up other possibilities for your next step. 

Relocation: Located in North Carolina, we hear the good, bad, and the ugly about why people are looking to move here. "We're getting out of here!" "We can't afford the taxes!" "We're FINALLY moving to the BEACH!" "We just want a slower pace of life." "We've worked our whole life for this and we want to enjoy our retirement." ... and that's just the tip of the iceberg. So many of our clients who relocate are often waiting for one specific milestone to occur before they make their move. Maybe it is retirement or a child's graduation that's the driving factor. When relocating, it's often important to consider when you want to be in your new home and work backward. Ex: 1)"I'm retiring in December of 2025." Well, if you're planning to design and build your new home, you really need to give yourself at least a full year for that process once you decide where you want to be. 2) "We love this home & community but we're not moving until our son graduates from high school." It's important to discuss what future opportunities are in that specific community long term, if there are limited options, you may want to explore purchasing now to avoid missing out. You could potentially purchase now and rent the new property out until you're ready to make your move, or if it works financially, you could use it as a second home. 

Retirement: We also encourage home buyers who are planning to retire to speak with a lender before the big day. They can help determine if it makes more sense to purchase while still using current employment income to qualify for financing vs. waiting until afterward when you would have to qualify based on a potentially fixed retirement income. It's also important to disclose all of your retirement plans because if your income situation changes substantially without your lender's knowledge before closing day, it could potentially delay or prevent you from getting final approval to purchase your dream home. 

Our team at Bill Clark & Legacy Homes is here to help you navigate your new home journey every step of the way. If you're even remotely considering a new home purchase, reach out to our team today to start the conversation! 

Click HERE to be connected with our New Home Sales Team today.