Buying!The Dennis Difference January 23, 2021

IS BUYING A HOME MORE AFFORDABLE THAN RENTING?

Are you spending more time at home? Is your home doing double duty as an office?  If so, you’re not alone.  If you’re renting, you may be wondering whether or not buying a home is a better option even with home prices on the rise.  So, is it?  Well, the data experts at ATTOM DATA SOLUTIONS say that owning a home is still more affordable than renting.

In their recently published 2021 Rental Affordability Report they state that the research shows that

Owning a median-priced three-bedroom home is more affordable than renting a three-bedroom property in 63% of the 915 counties analyzed

The report goes on to state that

“in 83% of the included counties, median home prices have increased more than average rents in the past 12 months and have risen more than wages in about ⅔ of the nation.

So what’s the driving force behind this paradox?  HISTORICALLY LOW MORTGAGE RATES!  

That’s right! Todd Teta, the Chief Product Officer at ATTOM Data Solutions explains that mortgage rates below 3% are balancing the cost of rising home prices.  As we transition from 2020 into 2021, it appears that mortgage rates are staying low which will in turn continue to make homes affordable.  ATTOM’s Teta remarks that

“It’s startling to see that kind of trend. But it shows how both the cost of renting has been relatively high compared to the cost of ownership and how declining interest rates are having a notable impact on the housing market and home ownership. The coming year is totally uncertain, amid so many questions connected to the Coronavirus pandemic and the broader economy. But right now, owning a home still appears to be a financially-sound choice for those who can afford it.”

If you’re still wondering if buying a home is right for you, please contact us!  We can help you not only find a home but we can put you in contact with trusted advisors who can help you decide what’s right for you. Come experience The Dennis Difference and see what sets us apart from the rest!

Selling!The Dennis Difference January 6, 2021

3 THINGS TO CONSIDER WHEN SELLING YOUR HOME

Selling your home is a big decision and it’s important to understand how to get the most money for your investment in the current market.  When you think about selling your home you may be overcome with sentimental memories and that’s okay.  Just remember that you will build new memories in your new home and reach new milestones.  Help from a real estate professional can help you avoid costly mistakes, give you guidance on pricing your home correctly, and help you transition to your new home.  

SETTING THE CORRECT PRICE FOR YOUR HOME

In today’s real estate market, inventory is very low which means that homes are selling quickly and in some cases are listed and sold on the same day.  As a seller, this means that you may receive multiple competing offers which is very positive but remember that an appraiser will determine the fair market value of your home.  Why is this important?  It depends on the type of offer that is presented.  If you have a buyer that is able to pay above the appraisal value then there is generally no issue, otherwise you may have to renegotiate because the bank will only lend what the appraiser determines is the fair market value.  We can help you determine the sale price for your home using statistics from recent home sales and other metrics.

HANDLING EMOTIONAL ATTACHMENT

Homeowners are holding on to their homes longer than in previous decades.  This graph from Keeping Current Matters shows that since 1985 the average ownership time has increased from 5 to 10 years which is a huge increase over what used to be considered the “norm”.

The effect of staying in your home longer is that it might be harder for you to make the decision to sell even though you may financially benefit.  Memories are very powerful and if this is a first home or the home you raised a family in, then you are going to have an emotional attachment which could make it more difficult to negotiate the fair market value of your home.  It’s safe to say that the emotional value and the fair market value aren’t generally the same and accepting that can be challenging.

PRESENTING YOUR HOME TO POTENTIAL BUYERS

When preparing to put your home on the market it is important to depersonalize your decor.  From the buyers’ perspective they are looking to envision your home as their own.  This means taking down family photos, decluttering, and maybe even updating the paint colors.  This article on how to prepare your home to sell has a ton of useful information.

NEXT STEPS

Right now may be the right time to sell your home considering the current market conditions.   If you have questions please let us know.  We have a team of very experienced real estate professionals covering Hillsborough, Hernando, Citrus, Pasco, & Pinellas counties but that’s not all.  Dennis Realty & Investment Corp. is a part of the Leading Real Estate Companies of the World which means that we can help you no matter where you are in the world.  We’re local and we’re global so if you’re thinking about selling your home, make sure you have the right team to help you get the most for your investment.  We invite you to experience the Dennis Difference and see what sets us apart from the rest.