Kids are Back to School: Why Fall Might be the Best Time to Buy a Home

Summer is coming to an end. Kids are getting back into the school routine. Fall is just around the corner. The return of cooler temperatures, beautiful fall colors, and pumpkin-spiced coffee is on our minds. It’s also an opportunity to search for your dream home and hopefully snag a great deal!

Many people wonder if the best time to buy a house is during the spring/summer season. In a way yes, however, there are a lot of buyers out at that time trying to purchase a home. Once buyer demand slows down this time of year, sellers might be willing to negotiate with home buyers. If you didn’t get the chance to buy your dream home during the busy summer season, or are starting the process as a first-time homebuyer, here are reasons why buying a home is the best move to make.

Less Competition & Price Match Market Value

Usually, during the summer when a buyer sees something they like; they need to jump on it immediately or it will be to late. There’s competition everywhere trying to find the perfect home. However, once kids are back to school, fall is a perfect time to search for a home as most summer buyers would be already out of the picture.

On the other hand, if the homes listed during the summer didn’t sell, it’s probably because they were overpriced. Homebuyers might find the house prices falling more towards the actual market value during this season.

For instance, in 2017, the US, median sale price dropped 4% from $265,000 in June to $261,000 in October, according to Zillow home value index.

When searching for a home, try to do an estimation on the house price, submit an offer that meets the market value. It’s easier for buyers to negotiate a better price. You will be surprised how tables turn around. 

For example, Buyers have the upper hand more so than the sellers do. During the slower market, Buyers are willing to give the seller more time to close. This usually happens because they might sweeten the deal by leaving behind a hot tub. So, don’t miss out the opportunity to search for a home during Fall Season.

Before you decide to buy a house, find out if you can put your housing costs to work by buying this year! If you have any questions for us, don't hesitate to give us a call at 770-552-1000 or send us an email at skatz@vandykmortgage.com. We look forward to hearing from you soon!

Buying is Now Cheaper than Renting in Georgia

As the cost of renting is increasing, it gets easier to decide whether it’s a smarter choice to buy or rent. A new study indicates that buying is now 26.3% cheaper in the United States, with a traditional 30-year fixed rate mortgage. It indicates that 98 out of 100 United States housing markets buying is more affordable.

According to Trulia’s data, it’s no shocker that renting comes out best in two areas: San Jose and San Francisco, California. In contrast, in most places buying is still expressively better financial proposition.

Is Buying a Home cheaper than Renting in Georgia?

Atlanta posted an 11.6% increase in home values, trailing only San Jose. But Atlanta is also where buying saves the most over renting – 36.1% over seven years. Although Atlanta home values have gone up considerably, the median remains relatively low – just over $209,235. Change in median Rent is 1.3%, buying makes more sense.

Of course, what is not really mentioned in the study is that paying rent and paying mortgage are not equal things. When you pay rent, it entitles you to stay in a place. However, when you pay a mortgage, not only do you stay in a place, but also grants you ownership of your home.

So, buying is cheaper than renting in Atlanta. When you buy a home, it is a good investment. Your cost is predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage. Homes typically increase in value, which build equity. Homeowners receive various tax benefits and gain control over their space as they can make modifications without permission.

If you have any questions, please don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon!

Property Taxes: What You Need to Know

There are things you might not know enough about when it comes to property taxes. For those who haven’t bought a home yet it’s time to break the ice, you need to gain a deeper knowledge about property taxes.

So, what is property tax? It’s a tax on real estate you own, both the value of your home and the land. The funds collected from property taxes are used for road construction, libraries, public schools, and a good number of other programs.

If you are a new homeowner, you probably pay a big property tax bill every year depending on the regulations you live off.

Here’s some things every homeowner should know about their property taxes.

Paying Your Property Taxes

The best thing to know is how much you will pay in property taxes.

So how would you know that? A tax assessor will determine your property tax where you live and the amount the house is valued.

 You should receive an Annual Notice of Assessment (this is NOT a bill) which will inform you, the property owner, of the current fair market value as calculated by the Board of Tax Assessors as well as the assessed value of your property. 

The Annual Notice of Assessment also includes estimated taxes that are based on the previous year's millage rate and the current year's value. The actual tax bill will be calculated on the millage rates set by the Board of Commissioners and the Board of Education for the current year. Tax bills are usually issued by the Tax Commissioner in August but all depends on your state/county.

Property Tax Exemptions May Apply to You

In some cases, you might be eligible for a property tax exemption. Tax exemption reduce your obligation to pay tax. It may vary by state and by local tax judication. The best way to figure out if you’re eligible is to contact your local tax assessor.

If you are a military veteran, more than likely you are qualified for exemptions.

You Can Appeal Your Assessment or Property Value

Many homeowners don’t realize that they can lower their property taxes. Believe it or not, only 2% of homeowners appeal their assessments.

It’s best to pay attention to assessment and reassessments. The assessor compares your property to similar properties that have sold in the area, such as the same age, size, and similar amenities. It’s based on variables that make your property valuable. You never know, it’s worth a try to lowering your tax bill.

In any case, do more research on property taxes, before you purchase a home. It’s important to have some knowledge about what percentage of your budget will go toward them.

If you want a full team of experts, we’re happy to help you make the best decision. Taking action now is the wisest way to achieve your goals for tomorrow!

Please don’t hesitate to reach out to us, we look forward to hearing from you!

First Time Home-Buying Mistakes People Make

When you’re in the 20’s or 30’s you don’t think about those questions home buyer should ask. Assuming you know the steps to buy a house and the type of mortgage you need. Realistically, you have no clue what you’re doing. Whether it’s choosing the wrong location or buying an overpriced home, buying a home is major part of your life.

You want to purchase a home with confidence. Here are common mistakes first time home-buyers make and ways to avoid them.

Buying a House Knowing you are Moving Again Soon

We all go through this transition from living in your parent’s house to starting your independent life renting an apartment. As we build our careers and save money, many choose to take the huge step of buying a home. Your job is a big impact in your life just like owning home. You don’t want to buy a property knowing you have a job offer in a different state.

So, is 2018 the year to buy a house? If you are a renter and ready to buy a house, ask yourself if you’re going to stay put for a few years. If yes, it’s the right time to buy. You want to figure out your five-year plan before pulling the trigger on buying a house.

Getting the Wrong Type of Mortgage

Making your first home purchase is a great accomplishment as long as you did your research on mortgage options. Many first-time home buyers hear false statements about putting a 20% down payment. Honestly, that’s not the case, you can buy a house for much less than 20 percent down. Along with popular programs, such FHA Loans and VA Loans, the average median down payment has been 5 percent for first time buyers.

There are loan options available, just be aware of the types of loan products. It’s best to consult with a mortgage expert to help your decision on what is the best loan option for you.

Rushing into a Purchase

Once you find a home, you of course don’t want to miss the opportunity of buying it before someone else does. The next thing you do is rush through the home process. Truthfully, rushing into the process could take money out of your pocket in the long run. For instance,

·         If you are new to the area, give yourself some time looking for a home and getting to know the area. Knowing the area you’re interested in is important.  Don’t settle in when you aren’t sure about the location.

·         If you are newlyweds, give yourself time to adjust to couple life before searching for a home.

·         When purchasing a home, make sure to compare interest rate quotes to insure you are getting the best options for your mortgage.

Buying a home requires a lot of time and effort, you want to be fully prepared and make the best decisions possible.

Make sure you are ready to purchase a home, emotionally and financially! When you look for your dream home, remember it’s a huge commitment. Like I said, “You want to purchase a home with confidence.”

If you want a full team of experts to help your ways to avoid them we’re happy to help! Please don’t hesitate to reach out to us, we look forward to hearing from you!