Understanding the Low Inventory Housing Shortage 

 

The housing shortage is not news to anyone who has looked into buying a new home recently.  According to the National Association of Realtors, the supply of homes for sale in the U.S. has recorded a low of just 1.6 months of supply in January 2022.  While the number has grown since, the supply is still not enough to meet the higher demand.  Here is what to know about the housing shortage, what factors have caused it and how it impacts the overall estate market.  

Why is There a Housing Shortage?

Rising material costs, supply chain issues and labor shortages due to COVID have all negatively impacted the housing inventory.  However, the problem existed long before the pandemic started.  Essentially, the U.S. has failed to keep up with the housing demands of a continually increasing population.  

One factor that exacerbates the shortage is the prevalence of institutional investors, who continue to buy up a large portion of housing inventory for profit.  These investors accounted for more than 13% of all residential real estate purchases in 2021. Removing those units from the pool of availability for individual buyers.

  The current interest rate environment is also complicating matters.  Hopeful buyers have seen their purchasing power plummet as mortgage rates increase.  In addition, high mortgage rates are deterring homeowners from selling, for fear of giving up their locked-in low rates.  Many who might otherwise be sellers are simply choosing to stay put, which is further limiting available for sale existing homes in today’s market.  

What is a Normal Amount of Inventory?

Traditional wisdom states that the real estate market needs a5 to 6 months of housing supply to be balanced or not leaning towards either a buyers market or sellers market.  The NAR home-sales data showed a 3.3 month housing supply in October 2022, which is healthier than January’s record low of 1.6 months but still well below the balance level.  

How Low Inventory Affects Homebuyers and Sellers 

The truth of the matter is that low inventory is affecting both buyers and sellers.  Many would-be sellers are unable to list their homes because they can not afford the price.  It leaves buyers with little buying power and fewer protections in the translation, as sellers have their choice of other hopefuls who might be willing to waive contingencies and accept any terms the seller wants.  

Even though there is a low inventory and harsher market conditions for both buyers and sellers does not mean that your ideal home is not out there.  Whether you are selling or buying, having support of a professional real estate agent by your side can make navigating the real estate market that much easier.  Buyers in Massachusetts are in luck with agents such as Hans Brings that have experience navigating the local markets surrounding Waltham real estate for decades!

Contact Hans for Your Real Estate Needs!

If you are a resident of Massachusetts that lives in the surrounding area near Waltham Hans is here to help you navigate the current real estate market.  Hans is a certified Waltham real estate agent with ample amounts of experience and knowledge when it comes to both buying and selling real estate!  Get in direct contact with Hans by calling him at 617-968-0022 or by filling out a contact form on the website!

Benefits of Downsizing Your Waltham Home 

Selling your home offers a fresh start and a significant amount of freed up cash for whatever life has in store for you next.  Of course selling your home can be no walk in the park, especially if this is a piece of property that you have called home for a long time.  It may be the site of most of your memories or even where you grew up.  

However, the benefits of downsizing your Waltham home are significant.  You may find leaving your home to be easier when you have a new home that fits your current lifestyle better.  This requires an honest assessment of whether or not your current home is right for your current lifestyle. 

A More Spontaneous Lifestyle

For many people they value adventuring out of town as they get older.  This requires planning such as who will tend to the lawn, check the mail, and make sure your house is OK?  With that in mind many choose to move to smaller more manageable homes.  Whether that is a small townhouse or an apartment, that leaves you with plenty of unique space.  These smaller spaces mean less clutter and less planning when you decide to travel.  

Adults who choose to transition into senior living communities can realize additional benefits.  In a community setting you often do not have to worry due to team members tending to your home.  You do not have to travel to see what this lifestyle has in store for you.  

Greater Financial Security

If you are used to paying down your home and mortgage downsizing can offer a significant cushion to your budget.  This might mean more money in your pocket to travel, eat out, or even enjoy other activities.  As you plan to downsize from your Waltham home it is a good idea to talk to a financial advisor and a professional Waltham real estate agent.  These professionals will be able to highlight the options to take to ensure a smooth downsizing process.  Leaving you with less clutter and more money to spend on exploring your new lifestyle! 

The Perfect Space for Your Needs!

There is nothing like having a new home to express your creativity while designing and furnishing it.  Downsizing allows you to access your vision for an ideal home.  Many of us spend years accumulating possessions over the years.  When you downsize it is a perfect time to remove clutter and sort through your possessions. You will have the opportunity when you move to decorate your home as you wish, building a unique and beautiful space.  

Fewer responsibilities

When you have had a home to look after and care for most of your life it becomes second nature.  This makes it easy to overlook how much time you invest into your home, from mowing the lawn to cleaning gutters.  Moving to a smaller more manageable space will free up time in your schedule that you didn't know was there.  Working with a Waltham realtor can not only be useful for selling your home but find your ideal new space!

An experienced real estate agent such as Hans Brings comes with extensive knowledge due to his decades in the market.  He is able to walk you through each step of the downsizing process to ensure that you are comfortable and not caught off guard by anything.  

Downsize with Hans Today!

If you have been contemplating downsizing whether that is due to lifestyle change or you are interested in more time on your hands contact Hans!  Hans is a Waltham real estate professional that is here to find your new space that fits your lifestyle.  Contact Hans directly by calling him at 617-968-0022 or by filling out a contact form on the website!

Open House Checklist for Waltham Buyers

With the current housing market buyers are feeling the pressure between high interest rates and the inventory.  It can be a stressful time to find your perfect home to begin with.  However, having a Waltham real estate agent by your side can make all the difference.  A professional in the real estate field will be able to provide insight into current market conditions along with making the process as smooth as possible. 

This competitive market can be stressful. If you are planning to attend an open house, you will want to be prepared, so you can make a quick offer and avoid panic buying.

How To Attend an Open House as a Home Buyer

First things first: feel free to dress comfortably for an open house, as there could be wandering and stair climbing involved.  Bring a notebook to keep track of aspects of the property that you love and would like to see changed.  Some may even plan to bring a tape measure for specific aspects of the home and that is completely fine and up to you.  If you have already been preapproved for a mortgage, you might consider bridging your documentation along to show that you are a serious buyer.  However, it is not really necessary unless you are considering submitting an offer on site. 

A few etiquette tips: Leave any pets or rambunctious little ones at home.  Do sign in when you arrive, even if you are working with an agent, it is ok to let the seller’s agent know that if they inquire.  Lastly, if you want to snap a few pictures of the home as you walk through be sure to ask before doing so.

What To Look For

Do not let fancy staging or tasty treats sidetrack you from the goal at hand.  You will want to look beyond the home’s surface appearance to determine if it will be a good investment, and a good match for your needs.  Take a lot of notes, jotting down anything that strikes you, whether it being positively or negatively.  Homes can start to blend together when you are moving from one open house to the next.  You want to make sure what made this particular home stand out to you. 

If you are planning to work from home or have hobbies that require dedicated space, be sure to look for areas that can accommodate them. You do not want to move in only to realize that there is nowhere to put your desk or set up a crafting table. 

What To Ask About

If you have any pressing questions about the property, now is the time to ask them.  For instance, you may want to know more about the schools in the area or nearby recreational facilities.  A good question to ask the seller is why they are interested in selling the home.  This is a great way to gauge if they are serious about selling their home or just testing the market. 

Some other important questions to ask during the open house is when the seller plans to review offers and if they need post-occupancy once the home is sold.  Be sure to inquire about the roof and A/C or heating systems especially if they are originals.  This will keep you prepared on if and when you will need to replace them. 

Open House Checklist for Buyers

Here is a handy checklist of items to examine during your open house visit.  Bring it with you and check things off the list as you make your way through the home, so you do not forget anything essential. 

• Appliances: Are they in good condition?

• Cabinets: Is there sufficient cabinet space in the kitchen and bathrooms? Keep a close eye on cabinets under sinks for mold or water damage.

• Ceilings: Look for water damage or mold

• Electrical Outlets: Are there enough of them, and are they conveniently located?

• Flooring: Be on the lookout for warped floorboards, cracked tiles, etc.

• Landscaping: Landscaping can be expensive, is the yard in good shape?

• Light Switches: Flip them to make sure they all work

• Outbuildings: Be sure to check on any structures outside the home, like a shed or garage.

• Room size: Is each room big enough to accommodate the furniture you envision in there?

• Storage space: Are there enough closets to store all your belongings?  And are they conveniently placed?

• Windows: What direction do the windows face? Is the view that you will enjoy, and does it allow enough sunlight to come in?

With this checklist in mind it will be easy to spot anything out of place or that does not fit your idea for your home.  Let’s go over some red flags for an open house to be mindful for.

Open House Red Flags

Even if the home you are looking at looks great on the surface, it may not be as lovely as it appears.  After all, the seller is trying to present their home in the next possible light for this event.  While at an open house, pay attention to what others are saying about the property.  They may have insights on the home, neighborhood or schools that you were not aware of. 

Some warning signs to be aware of include outside nuisances, like noisy streets, barking dogs or unruly neighborhood children.  Be sure to take notes with anything that does not sit right with you.  Odd furniture placement could be hiding cracked plaster or a damaged floor, trust your instincts. 

Trust Your Instincts & Trust a Waltham Real Estate Agent

Hans has been working in the real estate industry for decades now and has extensive knowledge of the Waltham area.  If you are looking around at open houses and are not too sure about one be sure to contact a trusted professional like Hans.  You can get in contact directly with Hans by calling him at 617-968-0022 or by filling out a contact form on his website

 

 

The Best Time of Year to Buy a  Waltham House

Does the time of year actually matter when buying a house?  The short answer: yes and no.  Seasonality tends to affect factors such as inventory and purchase price.  During the spring time inventory is plentiful, but competition among buyers may cause prices to rise.  By contrast, home prices may be lower during the winter months, but inventory is usually limited.  Seasonality can influence the process of moving as well depending on the weather. 

The best time to purchase a home is not always when inventory is at its peak or when price has hit its low for the year.  Sure, these are important factors to consider, but the broader market conditions and your personal needs also play a role.  The truth of it is you can find houses during any season.  Determining the best time to jump into homeownership means understanding the pros and cons of buying a house at different times and deciding when it is best for you.  Let’s look at how the time of year affects home buying.

Buying a  Waltham House in The Winter

Winter is usually the cheapest time of the year to purchase a Waltham home.  Sellers are often more motivated, which automatically translates into an advantage for you.  Most people suspend their listings from around Thanksgiving to the New Year because they assume buyers are scarce.  However, sellers that are listing during this time usually mean that they want to sell their home as soon as possible.  Theft may even be more willing to throw in extra perks such as appliances and window treatments to get the deal done. 

However, just because prices are cheaper does not mean inventory is at a high.  Winter may also mean that you may have to navigate house hunting and open houses in less than ideal weather, depending on which part of the country you live in.  You may not  even see a property in full bloom during this time of the year.  Winter season can bring inconveniences during the process.  For example your inspector may have a hard time gauging if the roof is in good condition if there is snow all over it. 

Despite these challenges during the winter season, the closing process tends to be speedier.  Lenders

process fewer applications during this season as well.  Waltham real estate agents are more accessible, and inspections have less backlog.

Buying a Waltham House in The Spring

Spring is a hot time of the year when it comes to the real estate market.  The warm weather and end of the school year tends to draw out sellers and buyers in doves, which creates a healthy marketplace.  This time of year has its pros and cons if you are looking for a new home.  You will have plenty of inventory to look at, but that means so does your competition.  You may even find yourself in a bidding war during this time of the year.  

One of the simple reasons house inventory tends to increase with the temperature is because hoses show better.  The trees and flowers are in bloom, and grass turns green again.  Houses look much better in the spring sunlight.  Home prices may be top dollar but buying in the spring is popular for a lot of reasons.  Families are looking to get settled before a new school year, there is more time to shop for a home together and the weather makes it an overall more enjoyable experience. 

Buying a Waltham House in The Summer

The summer season is still a busy time from the spring rush, but you can get a great deal if you are willing to sit tight until the end of summer.  Expect to come in with a strong offer and not just on price.  Sellers are looking for a serious buyer during this time of year, that leaves them time to sell their home and use it to purchase another.  There is a better chance you can time your sale and purchase together since lots of buyers are on the hunt. 

In most areas the market slows down a bit as it gets closer to August.  Late August traditionally gives you a great opportunity to find deals, because sellers slash prices even further.  Do not blow off the houses that have sat on the market during the spring and summer selling seasons.  There are numerous reasons why a home might not have sold. Be sure to do your own research and walk of the property with your Waltham realtor to get a proper analysis. 

Location matters when you purchase in the summer.  The early days of summer are considered peak real estate season in the U.S., but it is not true in all areas of the country.  Florida is a great example, the temperature and humidity in the Sunshine State skyrockets in July and August.  Leaving you with a less pleasurable experience during these months. 

Buying a Waltham House in The Fall

Outside of winter, a fall purchase can be ideal for cash strapped home buyers.  Once summer ends, sellers get more motivated.  During this time the market typically sees lower prices and provides an opportunity to get a deal done.  The same as in the winter season there is less inventory.  Many sellers want to avoid moving during the holiday season, which gives you more room to negotiate when you do decide to make an offer. 

There is also fewer buyers during the fall seasons.  People, particularly parents who have looked during the spring and summer typically want to be settled into a home before school begins.  Once the fall kicks in, they tend to put home shopping on hold until the next spring.  Being patient till October can leave you in a great opportunity to get the most bang for your buck.  This is particularly true of sellers who want to sell their home and get a tax write off before the end of the year. 

Contact a Waltham Real Estate Agent Today

If you are looking to find your new home and do not know when the best time to buy is, then look no further than Hans.   He has decades of experience when it comes to Massachusetts real estate.  Get in direct contact with him by calling him at 617-968-0022 or by filling out a contact form on the website. 

 

The Best Time of Year to Buy a  Waltham House

Does the time of year actually matter when buying a house?  The short answer: yes and no.  Seasonality tends to affect factors such as inventory and purchase price.  During the spring time inventory is plentiful, but competition among buyers may cause prices to rise.  By contrast, home prices may be lower during the winter months, but inventory is usually limited.  Seasonality can influence the process of moving as well depending on the weather. 

The best time to purchase a home is not always when inventory is at its peak or when price has hit its low for the year.  Sure, these are important factors to consider, but the broader market conditions and your personal needs also play a role.  The truth of it is you can find houses during any season.  Determining the best time to jump into homeownership means understanding the pros and cons of buying a house at different times and deciding when it is best for you.  Let’s look at how the time of year affects home buying.

Buying a  Waltham House in The Winter

Winter is usually the cheapest time of the year to purchase a Waltham home.  Sellers are often more motivated, which automatically translates into an advantage for you.  Most people suspend their listings from around Thanksgiving to the New Year because they assume buyers are scarce.  However, sellers that are listing during this time usually mean that they want to sell their home as soon as possible.  Theft may even be more willing to throw in extra perks such as appliances and window treatments to get the deal done. 

However, just because prices are cheaper does not mean inventory is at a high.  Winter may also mean that you may have to navigate house hunting and open houses in less than ideal weather, depending on which part of the country you live in.  You may not  even see a property in full bloom during this time of the year.  Winter season can bring inconveniences during the process.  For example your inspector may have a hard time gauging if the roof is in good condition if there is snow all over it. 

Despite these challenges during the winter season, the closing process tends to be speedier.  Lenders

process fewer applications during this season as well.  Waltham real estate agents are more accessible, and inspections have less backlog.

Buying a Waltham House in The Spring

Spring is a hot time of the year when it comes to the real estate market.  The warm weather and end of the school year tends to draw out sellers and buyers in doves, which creates a healthy marketplace.  This time of year has its pros and cons if you are looking for a new home.  You will have plenty of inventory to look at, but that means so does your competition.  You may even find yourself in a bidding war during this time of the year.  

One of the simple reasons house inventory tends to increase with the temperature is because hoses show better.  The trees and flowers are in bloom, and grass turns green again.  Houses look much better in the spring sunlight.  Home prices may be top dollar but buying in the spring is popular for a lot of reasons.  Families are looking to get settled before a new school year, there is more time to shop for a home together and the weather makes it an overall more enjoyable experience. 

Buying a Waltham House in The Summer

The summer season is still a busy time from the spring rush, but you can get a great deal if you are willing to sit tight until the end of summer.  Expect to come in with a strong offer and not just on price.  Sellers are looking for a serious buyer during this time of year, that leaves them time to sell their home and use it to purchase another.  There is a better chance you can time your sale and purchase together since lots of buyers are on the hunt. 

In most areas the market slows down a bit as it gets closer to August.  Late August traditionally gives you a great opportunity to find deals, because sellers slash prices even further.  Do not blow off the houses that have sat on the market during the spring and summer selling seasons.  There are numerous reasons why a home might not have sold. Be sure to do your own research and walk of the property with your Waltham realtor to get a proper analysis. 

Location matters when you purchase in the summer.  The early days of summer are considered peak real estate season in the U.S., but it is not true in all areas of the country.  Florida is a great example, the temperature and humidity in the Sunshine State skyrockets in July and August.  Leaving you with a less pleasurable experience during these months. 

Buying a Waltham House in The Fall

Outside of winter, a fall purchase can be ideal for cash strapped home buyers.  Once summer ends, sellers get more motivated.  During this time the market typically sees lower prices and provides an opportunity to get a deal done.  The same as in the winter season there is less inventory.  Many sellers want to avoid moving during the holiday season, which gives you more room to negotiate when you do decide to make an offer. 

There is also fewer buyers during the fall seasons.  People, particularly parents who have looked during the spring and summer typically want to be settled into a home before school begins.  Once the fall kicks in, they tend to put home shopping on hold until the next spring.  Being patient till October can leave you in a great opportunity to get the most bang for your buck.  This is particularly true of sellers who want to sell their home and get a tax write off before the end of the year. 

Contact a Waltham Real Estate Agent Today

If you are looking to find your new home and do not know when the best time to buy is, then look no further than Hans.   He has decades of experience when it comes to Massachusetts real estate.  Get in direct contact with him by calling him at 617-968-0022 or by filling out a contact form on the website. 

 

Waltham Home Sellers Checklist

We all know just how stressful selling a home can be, but it does not have to be!  This checklist will be a guide to keep you on track and ahead of the game.  From hiring the right real estate agent to closing day.  There is plenty to cover, so let's get into it. 

Before You List

You may be tempted to list your home right when you decide that you are willing to sell your home.  However, there are some things you want to check off your home sellers checklist first.  To ensure that you get the best price for your home, take care of these items before listing your home.  

Hire The Right People 

Selling a home is not a small or easy feat.  Finding the right time to sell, repairs, and even staging your home might be too much.  It is recommended to have a Waltham real estate agent by your side to assist you with selling your home and providing you insight into the market.  

If you decide that you are not going to hire an agent we highly recommend that you at least dust up on local laws and regulations of the process.  

A proven real estate agent can assist you to avoid the headaches of all the laws and regulations to follow during the process to ensure that the process moves along smoothly.  

Understand Your Waltham’s Homes Worth

Before jumping into an appraisal and slapping a price on your home , conduct your own comparative marketing analysis (CMA) to discover your home’s value.  Research the local housing market to see what similar homes in the area are selling for.  When calculating the worth of your home , take an honest look at the condition and consider any improvements that could be conducted.  

Prepare to Spend

Whether it is repairing squeaky floors or replacing them entirely, preparing to sell a home requires investments.  Be sure that you are ready financially by creating a budget and sticking to it.  Here are some main expenses that you can run into:

• Capital Gain Tax

• Staging 

• Transfer Tax

• Mortgage Payoff

• Mortgage Payoff Fee 

• Title Insurance 

• Repairs

• Real Estate Fees

Prepare Your Home

Getting a home inspection before placing your home on the market to sell will give you time to make any last minute changes or repairs.  A skilled Waltham realtor will be able to provide insight due to their experience dealing with getting multiple homes ready to sell!  Be prepared for a cost to have a home inspection done, the national average is around $300.  Your realtor will be able to guide you through each process so that these fees and costs do not creep up on you. 

Contact Hans Brings Today!

If you are a resident in the Waltham area that is looking to take advantage of the current market and sell your home contact Hans today!  He is skilled and experienced when it comes to the home selling process.  Hans will walk you through each step and be able to answer any questions that may pop up.  Get started by calling him at 617-968-0022 or by filling out a contact form on his website!

 

How Rising Interest Rates Can Affect The Waltham Housing Market 

It probably seems that you are not able to escape inflation right now, whether it is in your own pocket or in the news.  The Federal Reserve Has begun to raise short term interest rates.  However, this does not happen without creating an impact across the economy.  Let’s go over how raising Fed interest rates affect home buyers and others.  

Why Did the Fed Raise Interest Rates?

The Fed has two major missions when it comes to their hikes, one is to moderate the long term interest rates and the other is to stabilize prices.  If you have been keeping up with the news lately inflation has been a hot button topic.  There are several reasons for the rapid pace of price increases in the economy right now.  The only thing that the Fed has total control over is the federal fund rate.  

When the U.S. central bank raises federal funds rate, it is doing so to attempt to curb inflation.  However, since the federal fund rate is the rate at which banks borrow from each other overnight, it really impacts all interest rates across the board, due to all the other lender rates fluctuating with it.  The Fed must  balance a desire to control inflation with the negative impacts it can have on the economy.  The idea for these rate hikes is to make it more expensive for people to borrow money.  So what does that mean for the housing market?

How The Federal Reserves Affects Home Buyers & Sellers

When the Federal Reserve raises the federal fund rate, it tends to lead to higher interest rates across the economy.  Mortgage rates are no exception.  Let’s take a look at how these rate increases impact buyers, sellers and homeowners.  

How Home Buyers Are Affected

Even though mortgage rates and the federal fund rates are not directly correlated, they do tend to follow the same general direction.  This means that a higher federal fund rate ensures a higher mortgage rate for new home buyers.  This has several effects:

• Qualifying for lower loan amounts:  The amount from a preapproval from lenders depends on both the amount you put down along with the monthly payments that you can afford based on your debt-to-income ratio.  Because your monthly payment will be higher you will have a lower loan amount that you can handle.  This can impact first time buyers due to them not having the money from the sale of a home to offset a lower loan amount with a higher down payment.  

• Price Range:  You may experience difficulty finding homes in your price range.  As rates keep increasing, sellers will typically end up not raising prices or even lower them if they do not receive an offer.  It is important to know that this will not happen right away as of the lack of inventory on the market.  For this reason, pent-up demand could sustain higher prices for quite a while.  Some buyers may be temporarily priced out of the market.  

• Higher Mortgage Payments:  This would mean that you would be attributing more of your monthly income to your mortgage payments. 

• Buying vs. Renting:  When costs of property values shoot up typically we see rent move faster than mortgage payments, even with higher rates.

This can be a difficult market to digest and operate in whether it is your first time buying or you are just simply looking to relocate.  It is ideal to consult a professional Waltham real estate agent to ensure that you are getting what you want without overpaying!  A knowledgeable real estate agent will be able to help you navigate the market during current market trends.  

How Home Sellers Are Affected 

If you are looking to sell your home, you may feel there is no better time than now.  Given that house prices have risen 21.23% this year, at this time.  As rates continue to go up there are certain things to consider:

• There May Be Fewer Interested Buyers:  Higher rates simply mean that more people are going to be priced out of buying a new home until they see a decrease in rates.  This can leave your home sitting on the market longer before finding a buyer.  

• Finding a New Home:  One of the things that make your home so desirable is that there is not a large inventory out on the market in these current conditions.  That means that when you go to look for a home to transition into you will be faced with the same reality.  

• Price:  Your home may not sell for what you expect it to.  This is the hardest part to predict because inventory is so limited that prices may remain higher in areas for longer than they normally would.  However, at some point the frenzy for housing will end.  

If you are looking to sell your home and are not sure how to properly navigate the selling period contact a local Waltham real estate agent! They will be able to walk you through each stage depending on your goals till the closing.  

Contact Hans Brings Today!

These rates can cause panic in the market with both buyers and sellers.  The truth of it is that there is limited inventory on the market, but that does not mean you can not find success in buying or selling your Waltham home.  Hans is more than happy to offer his expertise to ensure that you get the result that you are looking for.  Contact Hans today for more information by calling him at 617-968-0022 or by filling out a contact form on the website! 

 

The right down payment depends on your financial situation.  Deciding how much to put down on a new house depends on balancing liquid cash with other priorities, but economic conditions related to Covid-19 and a hot housing market have added twists.  Due to the nationwide sellers market, offering a large down payment could make it easier to win a bidding war because it improves your chances of getting approved for a loan. 

How Much of a Down Payment is Typically Required When Buying a House?

If you are wondering what percentage you should put down on a house, 20% down is the rule of thumb, but there is no one size fits all figure.  For example, some loan programs require a down payment of  as little as 3% or 5% and some do not require one at all.  The primary reason most consider 20% is if you have a conventional loan to avoid private mortgage insurance.  However, according to the National Association of Realtors around 72% of homebuyers put down less than 20%.  

What is a Good Down Payment for My Waltham Home?

There is no right amount for everyone to have set in their mind when it comes to down payments, it will ultimately come down to your own budget.  However, there are some guidelines to consider what you are planning to put down should be in line with your monthly housing budget, your loan program, your liquid cash, and your plan for the home moving forward.  The larger your down payment, the lower your monthly mortgage payment.  While 20% is a good rule of thumb there are other options for lower down payments.  

The reality of it is that most homebuyers pay much less than 20%.  The median down payment in 2019 was 12% for all buyers, 6% for first time buyers and 16% for repeat buyers.  Having a professional Waltham real estate agent can assist you with the down payment process in order to set you up with an easy buying process! 

How Can You Decide How Much to Put Down?

Among other aspects, your finances and your goals for the home help you choose the right down payment.

Here are some questions to consider :

• Will your new house require upgrades or updates?

• Are you handling a lot of other debts?

• How secure is your job?

 

Only you and assistance from your Waltham realtor can help you determine the appropriate down payment.  

 

Putting down a larger down payment will ultimately have you paying less per month on your mortgage.  When considering your budget for your down payment you should consider private mortgage insurance, interest costs, emergency funds, and closing costs.  These are all aspects that need to be considered to not bleed your bank account dry before even getting started with your new Waltham home.  This all might be a giant headache to most when trying to dissect the buying process, but a well experienced Waltham real estate agent will be able to thoroughly communicate each step with you in order to set you up for success!

Contact Hans Brings Today!

No matter if you are a fresh first time home buyer or are looking to move on to your next property Hans has the market knowledge needed in order to guarantee a smooth transaction.  Get assistance from someone with years dealing with the Waltham housing market today!  Get a hold of Hans by giving him a call at 617-968-0022 or by filling out a contact form on the website. 

Having a checklist is a great way to ensure that you avoid mistakes and oversight by laying out a clear plan and set of strategic steps to monitor progress.  Here are some basic steps to consider when you are ready to purchase your first home:

Find a Realtor

It is important to note that you are not required to have a realtor or real estate agent when you purchase your home.  However, a Waltham realtor can make it much easier to find a home that is perfect for you.  Real estate professionals are trained in every aspect of the home buying process.  They are there to assist you find a property that fits in your budget and seal the deal at closing.   They have your best interest at heart and will advise you on your offerings.  

Figure Out How Much House You Can Afford

A lender will only offer you the amount that you can afford to pay monthly towards your mortgage.  Knowing how much you can spend on a house is a good way to narrow your home search.  Having this figure prepared allows your Waltham real estate agent to find you properties that fit your budget.  The first step would be to have an understanding of your DTI ratio and how a monthly mortgage payment will fall into your budget.  

Find a Mortgage Lender & Get Approved

Next on your list should be getting preapproved for a mortgage.  Having a preapproved mortgage gives you an idea of how much house you can afford, your interest rate, and the type of loan program you qualify for.  This is also a great tool to show your real estate agent and the seller that you will not have trouble finding funding for your home purchase.  

Begin The House Hunt 

Now that you have your pre approval in hand, you can now start house hunting.  You may have seen for sale signs while driving around the neighborhood in Waltham, but nowadays most properties are listed virtually.  Your Waltham real estate agent will also have access to real estate databases to find more in depth information depending on what you are looking for.  Real estate professionals are experts in your local housing market and may have additional insider knowledge on which homes you may like.  

Having clear communication with your real estate agent is vital to ensure that you are finding a property that offers all the qualities that you are looking for.  That will provide them with other aspects to consider when they narrow the list of properties to show you.  

Gather Your Documentation

It never hurts to be proactive when you are on the hunt for a new piece of property.  You will need to submit financial documents to your mortgage lender, so you should have it on hand. 

These required documents include:

• Proof of ID

• Your Last 2 Months of Income

• Proof of Funds for the Down Payment & Closing

• Your Last 2 Years of Tax Returns, Bank Statements or Investment Account Statements 

• A Recommendation Letter

Make An Offer 

Once you have gotten through the first five steps you are now ready to put into an offer on a property that you like! It can be a difficult decision when it comes to how much you should offer.  So, it is best to refer to your professional real estate agent as they will gather local property values and other sales data.  They will also draw up an offer letter and submit it for you.  

Conduct a Home Appraisal & Inspection

After you reach an agreement with the seller, it is time for the appraisal and the inspection.  Appraisals and inspections vary in a few important ways.  An appraisal only gives you an estimate of how much your home is worth.  They look at factors such as overall property value in the neighborhood and the general conditions of the property.  A home inspection on the other hand, gives you a more in depth look into the inner workings of your home.  During the process a home inspector will take a walk through of your property and test things.  

Close on The House

After your home has passed inspection and undergoes an appraisal, you are ready to close.  Closing involves signing all the necessary paperwork on your mortgage and taking control of the property.  Before closing you will get documentation from your mortgage lender called a Closing Disclosure.  These documents will include the final terms of the mortgage loan, what you owe in closing costs, and your interest rate.  

Contact Hans Brings Today!

If you have decided that the time is right for you to purchase your first home then make sure that you do not go through the buying process alone.  Contact Hans today to get insight of the current market conditions to ensure that you get the best deal possible!  Get in touch with Hans by giving him a call at 617-968-0022 or by filling out a contact form here.

 

Buying a home is a major life decision.  That is true no matter if it is your first time or not.  If you are planning to buy a home you may be hearing about today's market and wondering what that means to you.  

While mortgage rates are higher than they were at the start of the year, that does not mean you have to put your plans on hold solely based on market factors.  Instead, consider why you want to move and how important those reasons are to you.  Here are some reasons that motivate people to move today.  

A Need for More Space

The top priority for people moving out is for more space both indoors and outdoors.  Outgrowing your home is not something new.  As your lifestyle evolves you may be craving a larger yard, more entertaining room, or just need more storage space.  Having the physical space for your desired lifestyle may be reason enough to make the move.  Having a professional Waltham real estate agent can benefit you with your move.  A good real estate agent will have knowledge of the area and information on the current market conditions to get you the best price possible!

Desire To Be Close To Loved Ones

Not being around your loved ones can be tough to handle at times.  Especially when you do not get to see them face to face.  According to a recent survey 32% of people moved in recent years to be closer to their loved ones.  With covid creating flexible working conditions homeowners are more inclined to sell their Waltham home to be close to their families.  

What Does That Mean For You?

If you have been contemplating moving, one of the reasons listed above might be a top motivator for you. Even though the mortgage rates, house prices, and the current state of the housing market will play a role in your decision.  It is still important to make sure that your potential new home meets your needs.  No matter if those needs are a bigger backyard for the kids to run around in or more space for your home office.  

In Conclusion

In the end there are many reasons why people decide to move.  No matter if that is due to the current market prices or due to the reasons above.  If your needs have changed, connect with a Waltham real estate agent today.  A trusted professional real estate agent will be able to service you with knowledgeable advice when it comes to navigating the current market.  Get started by giving Hans a call at 617-968-0022 or fill out a contact form on his website.  

Does the latest news about the housing market have you questioning your plans to sell your house? If so, perspective is key.  Here are some of the ways that a trusted Waltham real estate agent can help you navigate the current market.  

Fewer Homes Are For Sale Than Pre-Pandemic

While the supply of homes available for sale has increased this year compared to last, we are still nowhere near what’s considered a balanced market.  This year supply has surpassed 2021 levels by 30%.  But the further back you look, the bigger the picture makes sense.  If you were to look back to 2019 we are roughly 40% below the housing supply we had at the time.  Why does this matter? When there is low inventory, there is still demand for your house because there just is not enough homes available for sale.  

Homes Are Selling Faster Than Normal

While homes are not selling as quickly as they did a few months ago, the average number of days on the market is still well below pre-pandemic norms that is in large part of the low inventory.  During the pandemic we saw homes sell at record rates during the pandemic.  Since the pandemic we have seen a slight uptick in average days, but still much lower than pre-pandemic times.  What that means for homeowners is that if the price is right, your home could be under contract  quickly.  

Buyer Demand Has Moderated

This year has seen a hike in mortgage rates and that has affected buyer demand to soften.  Prior to the pandemic it was typical for home sold to be 2 offers, then as the market heated up the number of offers skyrocketed with record low mortgages.  However, most recently the number of offers on homes sold today are at pre-pandemic as the market cools from the frenzy.  Now do not be mistaken, buyers have not disappeared, they are still out there. 

In Conclusion

If you are looking to get your questions answered or have help being navigated through this market reach out to Hans Brings; A trusted Waltham real estate agent.  A true professional will be able to assist you through the whole process from the homes listing  to close.  Get clearity today by giving a call to 617-968-0022 or by filling out a contact form on the website.