How to Buy a Home in this Market
There are three main ways I’m seeing buyers afford homes in this current market.
1. Move Up
Homeowners selling their current home and rolling that equity into a new home is a great way to access (usually) tax-free cash and buy a home better suiting for their present needs.
The interest rate is generally not as favorable, but the ability to avoid the $100K bidding wars of recent years is a welcome relief and people like you are making these deals happen every day.
2. Temporary Interest Rate Buy Downs*
A temporary rate buy down is a way for seller (or via lender credit in new construction deals) to offer buyers significant short term savings by giving them a financial credit toward a portion of their monthly mortgage payment for the first couple years of home ownership.
For example, if you as a buyer have a lingering car payment and don’t want to make a house payment AND a car payment, you can seek to negotiate a temporary buy down that offsets that car payment, so in two years, the car is paid off at the same time the credit is used up.
*terms and conditions apply. Speak to a mortgage lender for details.
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3. Family Gift Funds
This is an increasingly popular method of buyers obtaining funds for a downpayment on their new home - even though it’s rarely publicized, as it’s a bit more personal in nature than options 1 and 2.
With rents as high as they are, it’s common for buyers to have good income but insufficient savings to put down the downpayment they desire.
Family gift funds help make home buying an option.
If you’re interested in learning more about what this could look like for you and your family, please send me an email.
If you have a desire to buy or sell in the coming year, let’s chat.
Life has a way of keeping us all moving, and I’d love to be your real estate agent.
Contact me here to set up your free and confidential consultation.
Kevin
