It’s a New Year and just like any other year, I spent the last 30 days reflecting on the last year as it relates to real estate. Okay, maybe I thought about it more than 30 days. What was I thinking about? Thinking about what my clients were looking for. Thinking about how many more homeowners are delinquent on their mortgages. I’m also thinking about how prospective home sellers not under water on their mortgages wanted the highest price. A lot of people consider buying a new home in NJ, especially now that the market has more affordable pricing (depending where the condo/home is located). Alternately, there are home sellers trying to avoid foreclosure simply wanting an out. Out of the financial burden and onto a new life. Some left the state altogether to escape the crippling property tax rates. Then I had retail buyers with higher discretionary incomes wanting the best schools their money could afford them. Quick on the heels of enjoying appreciation profits from selling their New York condo and ready for the suburban life–New Jersey was calling them. They heard NJ was close by, just a quick NJ transit, NY water ferry ride away from New York City. If they ever missed New York, no problem NJ trains are nearby for easy access to NYC/BK. Some of my clients were investors and really wanted a smart investment. These are possibly my favorite clients simply because they favor a good value over the remodeled kitchen. After all these -were DIY re-habbers with or without a renovation crew eager to create their own style.
For you, you’re asking a different question. You made your resolutions and after months or years of sitting on the sidelines whether you’re a home seller or home buyer /investor and asking when should you buy a home?
And the answer is, “It depends” since there are so many variables. But let’s start here, if you’re a first time home buyer currently renting and/or a current homeowner looking to trade up to your “dream home” think and plan carefully. Here’s Simple Tips For Home Buyers if this is your first time at it. And yes if you’re working on your credit score, learn how credit scores affect home buyers mortgage rates.
I’m not going to be a popular real estate consultant/agent/realtor for saying this: maybe it’s okay to stay put exactly where you are. You read that right. Let me explain. In the last year I’d venture to say over 80% of my business came from assisting homeowners from avoiding foreclosure. Here’s the thing, there were a lot of reasons for their loss. Some were over leveraged as in bought too expensive of a home. You know how the story goes, house hunter gone crazy and bought the Mc Mansion because their family thought it was a good idea! Some were over stretched because they suffered a job layoff, endured unexpected medical expenses or sadly faced a death or divorce. Either way, life happens this way. Here’s the reality check–maybe the home you’re currently in is ENOUGH for now. If you find yourself outgrowing your 1 bedroom condo, then sure, it might be a smart choice to upgrade to a larger space. Maybe you’ve been renting and feeling the rental market squeeze. In the last several years, rent prices scaled upwards and in that scenario, it’s logical to buy. Besides you can get a tax deduction for being a homeowner. Just remember to crunch the numbers and be sure you can afford it. Whatever your decision, make sure it makes sense for you.
Thinking about selling your home to upgrade? Again think it through, if you have equity in your home and you can TRULY afford a larger home because you want to–go for it. Otherwise, staying in your 4 bedroom cape cod and tackling DIY projects in the home could be fun!
These decisions are all personal so whether you’re thinking about buying a new home in NJ and/or selling a home to upgrade into a different one–remember to think it through because staying just where you are might work!
