Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

June 30, 2021

474 Monroe Dr, Palo Alto, CA 94306

Palo Alto Home For Sale in Monroe Park neighborhood

Nestled amongst majestic redwood trees, 474 Monroe transports you to a zen-like retreat. Situated on a park-like lot, this inviting shingled, delightfully turn-key Palo Alto home is stacked with a new roof, engineered wood flooring, fresh painting, updated bathrooms, and kitchen. The backyard is a private oasis with an expanse of green grass, plus multiple patio areas. Save on your utility bills with nature's A/C - the property's gorgeous redwood trees create privacy and shade - sustainability defined. Plans developed by sellers for ~3000 SF home that allowed removal of some redwoods in the front yard and retain the huge backyard are available. Easy access to 101 and 280, schools, great nearby restaurants in both Los Altos and Palo Alto, grocery stores, movie theaters, and other services, plus two neighborhood parks. Award-winning Los Altos schools serve this address. The Monroe Park neighborhood is a special corner of Palo Alto that will delight with its charm, convenience, and livability.

Posted in Market Updates
June 30, 2021

1720 Holly Ave, Menlo Park, CA 94025

New Home in Central Menlo Park For Sale

New contemporary in the heart of Central Menlo Park - spacious luxury on nearly a quarter of an acre. Built-in a three-story floor plan for modern livability with sleek modern lines outside and beautiful finishes inside, including white oak floors on the main & upper level and aesthetically matching tile floors In the bright lower level. From the formality of the living and dining room, a tremendous kitchen and family room spans the rear of the home and opens to a covered terrace & spacious yard. The generous lower level offers a recreation room, full bar, wine cellar, fitness area, and a home theatre with a cinema screen & surround sound. Six bedrooms plus an office across the three levels provide for the utmost functionality and individual privacy. A luxurious upstairs master suite, 5 full baths, and 2 half-baths complete the home's delightfully comfortable ambiance. This splendid new Menlo Park home is close to acclaimed Menlo Park schools, Stanford University, downtown shops, and restaurants.

Posted in Market Updates
June 30, 2021

255 Selby Ln, Atherton, CA 94027

Atherton Home For Sale

This stunning Atherton home is the gateway to luxury living and perfectly blends the romance of the era with fresh chic sophistication.

A major renovation and list style expansion has everything needed for today's work-from-home lifestyle. Seller spent over $4 million on the design and construction.

The quality of the materials is exceptional. The estate set in a secluded and serene approx.1-acre lot with a total of 7789 sq ft. The main house has 5578 Sq ft living space, 483 sq ft garage. The pool house has 822 sq ft living space, 310 sq ft, and 296 sq ft garage, you will find the perfect combination of comfort and luxury. The estate comprises 7 suites, 7 full baths, one powder room, 2 laundry rooms, temperature-controlled wine cellar, pool house,4 car garage. Handcrafted steel-framed staircase, the whole house has a flooring heating system with a controller in each room for energy-saving and nurture our health. Brand new roof, gourmet chef's kitchen, high-end waterworks shower systems through all bathrooms.

Posted in Market Updates
June 22, 2021

Buying a House in California As a First Time Buyer

Buying a home for the first time in life is a once-in-a-lifetime experience. People have a lot going on in their minds about how they want their first home to be. Homes are considered one of the most expensive purchases in a person’s life. It is normal for you to rethink the question; should I buy a house now in California

When you think that you are ready to buy a home, make sure if is it a good time to buy a house in California. There is a whole multi-step process that you will need to go through in order to convert that dream house into a reality.

If you are wondering how to buy a house in California first-time buyer here is a complete guide to help you through the process;

Preparing Yourself

 

Before you actually buy a house, you need to prepare yourself financially and mentally. Buying a house means viewing several houses that can be exciting but at the same time quite stressful. When you buy a new home, that too for the first time, it uplifts your mood and brings a spark of excitement, but only if you manage the whole process smartly.

The main factors that you need to consider and focus are:

·       Down Payment

When you plan to buy a house on a mortgage, the first thing you need to provide to the lender is a down payment.

You need to make sure that you can afford to pay the amount without damaging your whole financial budget and disturbing your lifestyle. It would be best only to buy a home when you are financially and mentally ready for the process.

The type of mortgage that you chose depends on your current financial situation. The lender also has a role in deciding the breakdown of your down payment and mortgage. Most banks and private lenders have strict requirements and a loan is only given if you have a healthy monthly income, maintain a good credit score, have a low debt to income ratio, and meet other lifestyle expenses easily.

The standard amount of down payment is 20% of the sale value of the house. However, government-backed loans such as FHA (Federal Housing Administration) and VA (Veterans Affairs) allow considerably less down payment up to 3.5%.

You can decide the percentage of your down payment by calculating it. For example, if you want to make a 4% down-payment on 300,000 dollars home, that would be 4% of this total amount.

If you are not yet ready to make the down payment but plan to buy a house eventually, you can calculate it and start saving up the amount.

·       Closing Costs

Closing costs are the extra fees and other expenses you need to pay to finalize your mortgage.

Typically, these fees cost around 2% to 5% of your total loan amount.

·       Move-in Cost

You also have to keep in mind the move-in costs.

Move-in costs include any repair that you might need to do after moving-in, furniture, moving company payments, etc.

·       Calculate your Numbers

Before you go looking for your dream house, you should have a budget plan in your mind, so you know your range and select the house accordingly. Keep your budget breakdown in mind at every step while buying the home, it will save you from over-stressing yourself.

·       Credit score

When you put in a mortgage request, various factors decide how much mortgage you will get, and one of them is your credit score.

Your credit score will determine how much interest on your mortgage you will have to pay and also how much mortgage do you qualify for.

Here are some tips to help you get a good deal

Ø  Pay your bills on time.

Ø  Keep your credit card balance low.

Ø  Keep tracking your credit score regularly.

First time Home Buyer’s Eligibility Requirements

 

If you have not bought and owned a house anytime in the past or at least in the past three years, you are eligible as a first-time home buyer in California, and you can benefit from the several first-time homebuyer programs.

Do your thorough research about first-time homebuyer loan programs operating on government and private levels before you go searching for a house. Go through all the terms and conditions and contact professional and financial advisors if you need any help to understand them.

Some of the most common loan programs are:

First time Home Buyer Loan Programs

There are several programs that allow first-time homebuyers to get houses for sale in Menlo Park CA

These include;

·       FHA Loans

Many first-time homebuyers benefit from this program. It allows you to buy a home even with low credit scores. The Federal Housing Administration usually allows down payments as low as 3.5% for the people who have a credit score of 580 or higher.

FHA makes sure to provide loans for people who have credit scores of even 500, although a 10% down payment is usually required.

·       Conventional Loans:

Conventional home loans, on the other hand, are not guaranteed by the federal government.

·       VA Loans:

These loans are offered to the military veterans and their spouses and often do not require any down payment at all.

·       USDA Loans:

A USDA (United States Department of Agriculture) home loan offers loans to eligible rural and suburban buyers at zero down payment. The USDA issues these loans through the USDA rural development housing loan program.

Tips for buying a House at a Lower Cost

Compare Mortgage Rates

The consumer financial protection bureau recommends requesting loan estimates for certain types of mortgages from various lenders and keeping an eye on the rate of interests and other fees. This will help you save costs on homes for sale in Menlo Park CA by letting you avoid the excessively high charging lenders.

Be careful while choosing your real estate agents

While you are looking for a real estate agent, take as many referrals as you can. It would be best to take referrals from recent homebuyers in family and friends. Ask them to guide you through the process.

After careful research, when you shortlist your potential real estate agents, talk to them and ask them about their experience, license credibility, and knowledge of the market.

A good agent will have all the necessary information on hand and be willing to search through the market to find the house according to your demands.

Pick a suitable neighborhood

When you are planning n buying a home, it is important to pick the right neighborhood. Pick a community considering your social and religious values and other needs.

Picking the right neighborhood will make it very peaceful and easy for you to settle in the area.

Ask your neighbors about the area and functioning facilities in the area before settling in.

Virtual home tours

Before you physically visit the homes, give a shot at the virtual 3D home tours of Menlo Park houses for sale. These tours can help you shortlist the properties that you want to visit physically and then be able to make a decision.

Get the home inspected:

When you select a house, don’t try to save the inspection cost because it can turn out against you in the long run. Paying some money for a home inspection before buying it can save you from future troubles.

Sometimes there are hidden plumbing and sanitary issues in a property that you might not be able to see on your visits, but the inspection team can expose them if you pay them for inspection.

Home insurance:

Home insurance covers the cost of any repair and reconstruction that might be required in the house before you move in and even after. It would be best if you bought enough insurance to cover the cost to rebuild it in case of any unfortunate events like that.

All the above-mentioned tips will help you get a good deal for your first-ever home and make this experience a happy one.

Posted in Market Updates
April 14, 2021

Five Myths About Real Estate Agents

Happy Couples Meeting with Menlo Park Real Estate Agent

5 Myths About Real Estate Agents

Do you need a real estate agent? Do realtors pocket the whole commission?

Home Buyers and Home sellers often enter the market with misconceptions about realtors — how Real Estate Agents work, how the process works, and what the agency relationship is all about.

Without getting too far into the weeds, it's helpful to point out that there are most likely two agents in any one real estate transaction: one for the buyer and one for the seller.

 

Here are five myths (and five truths) about working with both buyer's and seller's real estate agents.

 

1. Real Estate Agents get a 5% commission, no matter what

Most people presume that their realtor is taking the whole commission. That would be lovely, but it's just not precise.

Truth

First, it's helpful to know that the seller reimburses the commission and they divide it -into four portions: between the two Real Estate brokerages and the two real estate agents.

After All, the brokerage commission is not fixed or set in stone and sellers can sometimes negotiate it.

 

2. Once you start with a real estate agent, you're stuck with them

If you're a seller, you sign a contract with the real estate agent and their brokerage. That contract includes a term — typically six months to a year. Once you sign the agreement, you could be stuck with their agent through the term. But that's not always the case.

 

Truth

If things aren't working out, it's possible to ask the agent or the brokerage manager to release you from the agreement early.

Buyers are rarely under a contract. Buyer's agents work for free until their clients find a home. It can be as quick as a month, or it can take up to a year or more. And sometimes, a buyer never purchases a house, and the agent doesn't get paid.

Before jumping into an agent's car and asking them to play the tour guide, consider a sit-down consultation or a call and read their online reviews to see if they're the right fit.

Otherwise, start slow, and if you don't feel comfortable, let them know early on — it's more challenging to break up with your agent if too much time passes.

 

3. It's OK for buyers to use the home's selling agent

Today's buyers get most things on demand, from food to a ride to the airport. When it comes to real estate, buyers now assume they need only their smartphone to purchase a home since most property listings live online.

Truth

First-time buyers or buyers new to an area don't know what they don't know, and they need an advocate.

The listing agent represents the seller's interests and has a fiduciary responsibility to negotiate the seller's best price and terms. So working directly with the selling agent presents a conflict of interest in favor of the seller.

An excellent buyer's agent lives and breathes their local market. They've likely been inside and know the history of dozens of homes nearby. An experienced real estate agent is well connected to the community, and he/she knows the best inspectors, lenders, architects.

They have facilitated many transactions, which means they know all the red flags and tell you when to turn your back on (or toward) a home.

4. One agent is just as good as the next

Many people think that all agents are created equal.

Truth

A great local realtor can make an enormous difference, so never settle. The right agent can save you time and money, keep you out of the problem and protect you.

Consider an agent who has lived and worked in the same town for around ten years. They know the streets like the back of their hand. They have deep relationships with the other local agents. They have the inside track on upcoming deals and past transactions that can't be explained by looking at data online.

 

Compare that agent to one who's visiting an area for the first time. Some agents aren't forthright and might be more interested in making a sale. Many others care more about building a long-term relationship with you because their business is based on referrals.

5. You can't buy a for sale by owner (FSBO) home if you have an agent

In a previous generation, sellers who wouldn't deal with any agents tried to sell their homes directly to a buyer to save the commission.

Truth

Smart sellers understand that real estate is complicated and that most buyers have separate representation. And many FSBO sellers will offer payment to a buyer's agent as an incentive to bring their buyer clients to the home.

If you see an FSBO home on the market, don't be afraid to ask your agent to step in. Most of the time, the seller will compensate them, and you can benefit from their knowledge and experience.

Posted in Real Estate Agent
April 9, 2021

10 Reasons Why You Should Hire a Real Estate Agent

 

Menlo Park Real Estate Agent

If you’re thinking of selling your home in Menlo Park, your mind may be swirling with questions about the process. While it may be tempting to try selling your home on your own, there are many reasons why you may want to consider working with a professional real estate agent. To gain insight, it’s helpful to understand what a real estate agent does and why you might want to hire one. You may also want to consider hiring a Realtor®, a professional designation for real estate agents who are members of the National Association of Realtors® (NAR). NAR members subscribe to a strict code of ethics for real estate professionals.

 

Why You May Need a Real Estate Agent

Just as you’d likely hire a licensed professional to make repairs to your home, hiring a Menlo Park real estate agent can help give you peace of mind and confidence throughout the selling process. Below are ten reasons why you may want to hire a real estate agent to sell your home.

 

1. Real estate agents can help price your home to sell.

Generally, as the seller, your primary goal is to sell your home as quickly as possible at the best price so that you can move on to your next place. However, a significant factor in making a quick sale is ensuring your house is appropriately priced for the market. As the homeowner, it’s easy to think you know what your home is worth, but there’s likely a bit of subjectivity that goes into your estimate. A real estate agent has a more fact-based process that involves pulling comparable recent home sales within a specified radius and reviewing your home against these to determine a fair asking price. Suppose he or she is a professional with no emotional attachment to or biases against your home. In that case, your real estate agent can guide you in setting a competitive price that makes sense for the real estate market in your area.

 

2. They have home selling expertise.

Whether you’ve sold a home in the past or this is your first time, working with a real estate agent can help you gain home selling knowledge that only an expert can provide. That’s not to say tackling the process on your own is impossible. However, since a real estate transaction is likely one of the most significant financial transactions you’ll ever make,1, it makes sense to leave the ins and outs to a professional to help ensure all goes smoothly.

 

3. Real estate agents offer valuable professional service.

You can expect to pay a commission to your real estate agent at the closing as a seller. That factor alone is the reason behind many “For Sale by Owner” situations. However, it’s worth noting that many real estate agents offer their sellers certain perks at no additional cost, such as a professional photographer to take beautiful photos of your home, a deep-cleaning session, staging advice, and more. All of these extras can make a big difference when it comes to how quickly your home sells and may not cost you anything out of pocket.

 

4. Real estate agents recommend ways to sell your home faster.

One thing most sellers wrestle with is whether they should tackle specific home improvement projects before listing their home for sale. A real estate agent can offer advice that will help you make an educated decision before investing in a big home project that may or may not pay off during the selling process.

 

5. Only real estate agents can get your home on the multiple listing service (MLS).

One of the biggest challenges of selling a home without a real estate agent is finding the best way to distribute your home listing to potential buyers. Advertising is a pay-for-play process, so selling your home on your own will require you to spend money upfront to get your listing in front of as many eyes as possible. Working with a real estate agent provides your home access to the MLS, which is generally considered the primary system all real estate agents use to search for the most up-to-date home listings. MLS listings are what most buyers look at when searching for a home.

 

6. Real estate agents have essential connections.

Another benefit of working with a real estate agent is their access to valuable connections in the industry. Whether it’s putting you in touch with pros who can help with home repairs or simply sharing your listing with other real estate agents in their office who may have interested clients, your real estate agent can offer resources that may be superior to tackling the process alone.

 

7. They market your home professionally.

Marketing your home doesn’t begin and end with the listing. There’s much more that goes into it. Real estate agents are constantly marketing your home via their websites, social media, videos, flyers, and through events like open houses or broker luncheons. That alone may be a great reason to work with a real estate agent to sell your home. Not only is marketing your home on your own time-consuming, but you may not necessarily have access to all of the tools that a real estate agent has at his or her disposal.

 

8. Real estate agents take the time, so you don’t have to.

Speaking of time, selling a home requires a significant time commitment that most people don’t have. If you have a job or a family, it will be challenging to manage the entire selling process, from marketing your listing to scheduling showings and handling negotiations. Working with a real estate agent takes all those responsibilities out of your hands and allows you to focus on other things like keeping your home show-ready and finding a new home to move into once your current house sells.

 

9. Real estate agents handle the negotiation process professionally.

One of the trickiest yet most important aspects of the selling process is handling negotiations with potential buyers. An excellent real estate agent will tackle negotiations professionally and work hard to sell your home for the maximum price, so you don’t have to give up any additional sale proceeds aside from agent commissions. Real estate agents handle negotiations day in and day out, so you can feel confident in their ability to look out for your best interests.

 

10. Real estate agents can offer objective support.

Let’s face it: selling a home is an emotional process. Your house is more than just four walls and a roof; it’s the place you called home and where you created memories that are special to you. Hearing feedback from potential buyers could be a tough pill to swallow – whether it’s something about the house or yard, they don’t like, or maybe they do like the house but offered a lower price – having a real estate agent with an objective mindset can help to keep your emotions and stress at bay.

 

 

Once you decide to sell your current home or purchase your next home, consider hiring Milad Real Estate as your real estate agent. 

 

 

 

 

Posted in Real Estate Agent
April 7, 2021

City of Atherton

Atherton is an incorporated town in San Mateo County, California. Atherton lies two miles southeast of Redwood City, and 18 miles northwest of San Jose. It is a city is known for its wealth; in 1990 and 2019, Atherton was ranked as having the highest per capita income among U.S. towns with a population between 2,500 and 9,999, and it is ranked as the most expensive ZIP Code in the United States.

Atherton is a small, rural, and residential community, with no industrial land-use base. Native live oaks, white oaks, bays, redwoods, cedars, pines, and other ornamental trees cover the six square miles of town.

City of Atherton Homes For Sale

In 1866, Atherton was known as Fair Oaks and was a flag stop on the California Coast for the Southern Pacific Railroad between San Francisco and San Jose for the convenience of the owners of large estates living north of Menlo Park. The entire area used to be called Menlo Park. It was part of the Rancho De Las Pulgas, which is now southern San Mateo County.

There are a number of active community organizations throughout Atherton. Some include the Atherton Heritage Association, the Atherton Arts Committee, the Atherton Tree Committee, the Friends of the Atherton Community Library, the Holbrook-Palmer Park Foundation, the Atherton Dames, the Police Task Force, and the Atherton Civic Interest League.

You can find all the Atherton Homes for sale on MLS here.

Posted in Market Updates
April 5, 2021

Spring Cleaning

 One year ago, California Governor Gavin Newsom ordered a shelter in place.

Children across San Mateo County, Menlo Park, began going to school online, and “Coronavirus,” “Coronavirus Symptoms,” and “Coronavirus update” ranked among the top 5 Google searches.

This year isn’t a whole lot different, with the exception that Americans are stay-at-home-weary.

Spring is springing, however, and no virus will stop it. Whether or not you’re still stuck at home, consider getting that spring cleaning started.

The experts claim that if no one in the home suffered from the virus, your spring-cleaning ritual from years past would suffice.

If someone in the home did suffer from COVID-19, follow the CDC’s instructions for cleaning. You’ll find them at cdc.gov.

We’ve rounded up some cleaning tips that homeowners may not consider (but they should) when they’re spring cleaning. This week, we start with the air you breathe (and smell).

Filters, filters, and more filters

Most Menlo Park homeowners forget that there are more filters in the home than the one for the HVAC system.

The drinking water/ice dispenser in your refrigerator-freezer, for instance, “… should be replaced every six (6) months or after every 200 gallons of dispensed water,” according to the pros at geappliances.com.

And before you dismiss this chore, consider this:

The refrigerator water dispenser is one of the “germiest” areas of the kitchen (National Sanitation Foundation).

Follow the instructions in your appliance’s owner’s manual and make changing this filter a part of routine home maintenance.

Other filters to put on the list include:

HVAC filter: Replace every three months

Range hood filter: If you cook a lot, clean the filter every 1 to 2 months. If you own a ductless range hood filter: Clean these “… every one to three months or after 120 hours of cooking,” according to the experts with Proline Range Hoods. “If the unit recirculates air through the hood back into the room, it will likely also have a carbon filter behind the screen. Replace these as needed,” recommend the pros at Meticulous Inspections.

Dishwasher filter: Clean every 3 to 6 months, depending on how often you run a load of dishes. For tips, see this information at consumerreports.org.

Dryer lint filter: Clean after every load. , this will help you prevent becoming a victim of one of the county’s 2,900 dryer fires reported each year.

2,900 home clothes dryer fires are reported each year

Window screens: Yup, since they filter out dirt and bugs, window screens are considered filters. And, since spring is here, you’ll no doubt want to fling open the windows and let in some fresh air. Check for bends in the screens’ frames, holes, and other damage.

Next week, we’ll discuss the new trends in Menlo Park Homes kitchen and discuss some of the items that play a significant role in Luxury Homes in Menlo Park.

Posted in Interior Design
April 4, 2021

How to Handle Multiple Offer Situations in Menlo Park

Multiple Offers in Menlo Park

The Menlo Park, real estate market, is hot, and attractive home is a sought-after commodity. Triangle area buyers are all itching to get into a new home, and sellers usually expect to receive more than one offer very quickly after a Real Estate Agent posts their listing. Many Menlo Park sellers decide on an offer after only a couple of days on the market.

How can you, as a home buyer, navigate these often stressful situations? Read on for tips on making sure you have the most significant opportunity for success.

What Menlo Park Buyers Need to Know

Keep Things in Perspective

Buying a home can be a very emotional process. And when you mix in the fact you are trying to out-offer other buyers, this can be a recipe for disaster. It's essential not to get caught up in the sense of competition and do something you will sorely regret down the road. Such examples include offering more than you can comfortably afford or forgoing necessary contingencies so that you can land the deal.

"When dealing with a buyer looking at multiple offers, I remind my buyer clients to stay within their means and remember that their home is an investment. Often, the home buying process becomes very emotional, so, commonly, buyers get into a mentality that they can't lose a certain house. This leads to overpaying for a home, paying too much in Due Diligence fee, agreeing to terms you wouldn't otherwise agree to, and taking more risk in general," says Aria Vatankhah, a Realtor® with Milad Real Estate.

Be Prepared Ahead of Time

Before you write an offer, make sure everything on your end is prepared and ready to go. The last thing you want is for a seller to think that you have written an offer haphazardly or that a hopeful buyer is disorganized or ill-prepared.

Ensure that you have a strong Pre-Approval letter from a reputable mortgage lender and understand what timeframes the lender can meet. Sellers often desire to close as soon as possible, meaning 30 days or less from contract acceptance. Your agent should reach out ahead of time to see what terms the sellers prefer and help structure your contract accordingly.

Structuring Your Offer in Menlo Park

There are two primary components of an offer that sellers focus on: a majority of the weight on Net Proceeds and Due Diligence Fees.

Net Proceeds are the monies the sellers will walk away from at the end of the transaction. This not only includes what price a buyer has agreed to pay, but also factors such as closing costs, repairs, and even if the buyer has requested a home warranty. You do not necessarily need to have the highest offer amount to have your offer accepted, but make sure you factor in the net to the seller. If you need the seller to pay for your closing costs, it lowers the sellers' yield, thereby making your offer less desirable.

The Due Diligence Fee is the amount given to the seller to take the house off the market while a buyer performs their due diligence on the home. The higher this amount, the more likely it is that a buyer will not terminate the contract. Sellers do not want the house to go back on the market, so the higher you can make the Due Diligence Fee, the stronger your offer becomes. In today's market, it is not uncommon to see Due Diligence Fees at five or even 10 percent of the offer price.

The bottom line is that buying a home with multiple offers takes lots of patience and time. "Understanding the current market is so critical in helping buyers realize the challenges they are faced with," says Aria. "This can be a wild and crazy process, but it's important to work with a buyer's agent who can guide them appropriately based on their own needs."

For more information or to set up a Menlo Park Home Buyers Consultation, contact Aria today.

Posted in Market Updates
April 4, 2021

purchasing your first home in Menlo Park or selling your current house in Menlo Park

Whether you are purchasing your first home in Menlo Park or selling your current house in Menlo Park, if your needs are changing and you think you need to move, the decision can be complicated. You may have to take personal or professional considerations into account and only you can judge what impact those factors should have on your desire to move.

 

However, there's one category that provides a simple answer. When deciding to buy now or wait until next year, the purchase's financial aspect is easy to evaluate. You need to ask yourself two questions:

 

Do I think home values will be higher a year from now?

Do I think mortgage rates will be higher a year from now?

From a purely financial standpoint, if the answer is 'yes' to either question, you should strongly consider buying now. If the answer to both questions is 'yes,' you should buy now.

 

Nobody can guarantee what home values or mortgage rates will be by the end of this year. The experts, however, seem confident the answer to both questions above is a resounding 'yes.' Mortgage rates are expected to rise, and home values are expected to appreciate rather nicely.

 

What does this mean to you?

Let's look at how waiting would impact your financial situation. Here are the assumptions made for this example:

 

The experts are right – mortgage rates will be 3.18% at the end of the year

The experts are right – home values will appreciate by 5.9%

You want to buy a home valued at $2,000,000 today

You decide on a 20% down payment

 

Here's the financial impact of waiting:

 

You pay an extra $120,650 for the house

You need an additional $24,000 for a down payment

You pay an extra $700/month in your mortgage payment ($8,400 additional per year)

You don't gain the $120,650 increase in wealth through equity build-up

Bottom Line

There are many things to consider when buying a home. However, from a purely financial aspect, buying now makes much more sense than buying next year if you find a home that meets your needs.

Posted in Market Updates