The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. Baton Rouge is no exception, here rental prices continue to increase and are in many cases more than a house note.
The updated numbers actually show that the range is an average of 17.4% less expensive inHonolulu (HI), all the way up to 53.2% less expensive in Miami & West Palm Beach (FL), and37.7% nationwide!
Other interesting findings in the report include:
• Interest rates have remained low and, even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.
• Home prices would have to appreciate by a range of over 23% in Honolulu (HI), up to over 45% in Ventura County (CA), to reach the tipping point of renting being less expensive than buying.
• Nationally, rates would have to reach 9.1%, a 145% increase over today’s average of 3.7%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.
Buying a home here in the Baton Rouge area just makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to find your dream home. GlendaDaughety.com
You only get one chance to make a first impression. Your home should sell to the buyer from the curb. That’s how important curb appeal is. Your buyer should be so impressed, so charmed, so delighted that they want to leap out of the car and run inside.
How do you create curb appeal? Show attention to detail. Your home has to be prettier, cleaner and in better condition than its neighbors.
Start with sweeping the drive, walkway, and porch or entry of dirt and debris. Get rid of leggy bushes, wilted flowers and broken tree limbs. Plant fresh flowers in the front garden or in containers at the entry.
Power-wash the exterior and hand-wash the windows. Touch up paint around the windows, if needed. Paint the front door a fresh, modern color. Replace the door hardware and porch sconces.
The number one reason why people buy homes is to have more room. Whether they’re moving from an apartment or moving up from the home they have, they want to have plenty of space to do the things they enjoy.
If you have a large home, you’re golden, but that doesn’t mean you’ve got it made. You can ruin a buyer’s first impression with too much clutter, so make sure to keep your home picked up so your buyer can see your home’s features clearly and easily.
What if you don’t have a lot of space? Plan to do some storing and staging. Rent a storage unit and put away all out of season clothes, toys, and home decorations and accessories. Clean off all tables and countertops so you have only the minimum of things your need to operate your home. Empty closets of anything that is “stored” and move it to the storage unit. The small expense you’ll pay in storage fees you’ll more than make back from your buyer’s offer.
There’s a reason why first-time buyers and singles tend to buy older homes – they’re more affordable than buying new. So unless your buyer is a building contractor, chances are they want a home that’s as updated as possible.
You may not be interested in putting in a new kitchen in order to sell your home, but you can do a few things to make buyers happy. Replace the most dated features – countertops, cabinet pulls, or appliances.
Bathrooms are so personal that they can easily turn buyers off. Invest in new towels, bathmats and a shower curtain. Throw out slimey soaps and limp ragged bath sponges. Replace with liquid shower and bath products. You can take all the new stuff with you to the next home.
Painting is expected by buyers, but don’t repaint the same colors that you chose 10 years ago. Pick an updated neutral like a warm grey instead of beige. Be sure to choose a color that will complement the architecture and flooring in your home.
Contact Glenda Daughety today to learn more about real estate in Baton Rouge LA. We welcome the opportunity to update you on current market conditions while recommending lenders at the same time. Let our knowledge and experience serve as your guide to Baton Rouge real estate.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 7.2% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.7% over the next year. The Baton Rouge market will also continue to experience the same rate of increase.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way You are Paying a Mortgage
There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Are you ready to put your housing cost to work for you?
4. It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t? Would you wait?
Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.
Buying real estate is a process, starting with a property search and ending with a closing, with many details in between. One of the most important elements in the buying process is your closing costs. Knowing how much your closing costs is key to avoiding unexpected costs that may stop the buying process altogether.
Closing costs can be as much as 2% to 3% of your new home’s total cost. This amount can be quite a bit of extra money to come to the table with at closing. So its important that your realtor knows how to ask the seller to contribute to your closing costs. Negotiating closing costs is a crucial part of the buying process. If the seller is willing, he can absorb all of the closing costs or, at the very least, share them.
Another way to cut back on closing costs for is to apply for a no point loan or a no fee loan. If a home buyer doesn’t have a lot of extra cash to bring to closing, a no point or a no fee loan can be a good way of reducing up front costs.
Contact us today to learn more buying Baton Rouge real estate, the contract process and what to expect at closing. An experienced Baton Rouge Realtor can help you be prepared to buy your new home.