2017 Is the Year of the Buyer

2017 is going to be the year of the buyer. Here’s why. 

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The theme for 2016 was “The year of the refinance” with interest rates being so low. Now, people are saying that 2017 is going to be the year of the buyer. Things are certainly shaping up that way, here’s how.

For starters, we all know millennials are getting into the market and purchasing homes at a much higher rate than they have in the past. There are a few interesting statistics to note, including the fact that the national average rent rose from $950 a month to $1,040 a month in 2016 alone. That’s nearly 10%!

Buying a home protects you from continually rising interest rates.

The odds are that when investors are buying properties, now with higher rates, they are passing those costs along to the renters. Renters may think it’s smart to wait to buy until rates go down, but the truth is you’ll still be paying those higher rates in the form of higher rent.

If you rented last year, how much equity did you earn? The answer is none. Purchasing a home is an investment that’s nearly always appreciating in value. A 30-year fixed rate stays the exact same over the life of the loan, save for some taxes and insurance.

If you have any questions for us or you’re thinking about buying a home in 2017, don’t hesitate to give us a call or send us an email. We would love to hear from you.

7 Helpful Tips If You’re Buying in 2017

This market is active and competitive. Here’s what you should know if you’re buying. 

Looking to buy in the Salt Lake City Area? Get a full Home Search

Looking to sell in the Salt Lake City Area? Get a free Home Equity Report

If you plan on buying a home in 2017, that’s great news. However, there are a few things that you should know before you make the decision. We’ve got seven tips to share with you today that will help you become a better buyer. We’ve got tips for budgeting, tips for home maintenance, and tips for working with a lender.

1. Meet with a lender you trust. This could also be a lender that your Realtor trusts. You want to establish a game plan, know what type of loan product you’re going to get, and what you need for a down payment. There are a lot of down payment assistance programs out there.

2. Automate your down payment savings. Make them as relatively untouchable as possible.

3. Build up and clean up your credit. You don’t want to be sidelined when the time comes to buy because your credit needs work. A good lender will check your credit and if there are any problems, they will work with you to find a solution.

Be ready to pounce when it’s time.

4. Practice living on the budget of your estimated payments. This is a good exercise to use to determine if you can handle the monthly payments on your current income. 

5. Get familiar with home maintenance. If you’re a first-time buyer, you don’t necessarily need to know everything it takes to maintain a home, but it’s a good idea to get familiar with it.

6. Create your wishlist and must-have items list. Compare those lists to the homes currently on the market, and get familiar with the homes that match your criteria in your target areas.

7. Be prepared to pounce when you are ready. This is the final step, but it’s the most important one. The market is active and competitive. We expect our trend of low inventory to continue.

If you have any questions for us or would like to discuss this topic further, don’t hesitate to give us a call or send us an email. We would love to hear from you.