Should I buy or rent in this market: How do I know I am ready to buy a home
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The COVID-19 pandemic brought shortages for more than just toilet paper – in fact, it caused a ripple of supply shortages for homes too. As military families, not much can be counted on due to the constant changes and challenges. Finding military sources you can trust, like Caliber Military, is always important but especially when it involves things like your home. Home is more than where the heart is, it’s also a sanctuary of consistency in a world of unknowns. So how do you know if you are ready to purchase a home, and in today’s market, should you buy or rent? We talked with Army veteran and real estate agent, Victor Ponce. He is a certified military relocation expert and award-winning real estate agent in the St. Louis area.
How to Buy a House in 2022
Question: Can you touch on the challenges of today’s market and tips/tricks to navigating buying?
Answer: One challenge in today’s market is the lack of inventory. When there is a huge demand but not enough supply, it is considered a seller’s market. What this means is that the sellers dictate the market on price and terms. Try not to ask for closing costs to be included in your offer. Remember, you are not really negotiating with the seller but competing with other buyers, especially in a hot market. Ensure your real-estate agent really understands VA loans. Some sellers are hesitant to accept a VA offer on the advice of their agent because their agent may not be familiar with VA loans. Your agent may need to present the offer to the listing agent and explain how the VA guaranteed loan works. It takes skill to write a good VA offer.
Question: Can you touch on the challenges of today’s market and tips/tricks to navigating renting a home?
Answer: Renting has also become a challenge due to lack of inventory. Many rental properties are now being sold due to the pandemic and the protection of tenants’ non-payments to owner. Make sure you continue a good rental payment history. Each application is being looked at under the microscope.
Question: What advice would you give to help military families determine if they are ready to buy a home?
Answer: We all know the normal duty station time is 3-4 years before we have to PCS. I would recommend buying if your market supports a steady price increase in homes. Make sure you purchase a home within your budget. In other words, you may qualify for $600k home, but that doesn’t mean you have to purchase that high. Stay within your budget, which most of us are comfortable with on our allocated BAH amount for the area. Ensure you can sell the home with a profit if you do have to PCS in 3-4 years and not lose any money.
Budgeting for Buying a House
Question: What are some of your favorite budgeting tips and tricks?
Answer: To budget for the purchase of a home, make sure you have the following:
- Even though a VA loan is a no money down loan, I would recommend at least 3% of the sale price minimum in savings.
- Look for a lender that may cover your closing cost or a portion of it.
- Ensure you include your utilities cost when you think about your monthly payment.
- I recommend investing in a home warranty to cover unexpected repairs. Remember this is your home now, so any repairs will be at your cost.
Whether you are determining whether to rent or buy or already have a new home in mind to buy, Caliber is here to help. Reach out to a Caliber Certified Military and Veteran Lending Professional (CMLVP) today.
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