The Affordability Factor

The Affordability Factor

The 2018 summer real estate season is sizzling and home prices are rising amidst bidding wars, low inventory, and increasingly high demand.  With active listings inventory decreasing with each subsequent year, the average days that a home sits in the market has fallen to a record-setting low of fifty-four days.  Of course, this is not new information, especially if you are one of the nation’s forty percent of buyers who has been searching for a home for over seven months now.  

The stark reality of our current housing market has changed the way buyers are pursuing their dream homes to the point that forty-one percent of buyers are willing to settle for a smaller residence.  Thirty-five percent are willing to scale back their budget and thirty-three percent are considering amping up their down payment with a heft increase in monthly mortgage payments.  

Related: “Fathers Finance Real Estate”

Here’s the bottom line: the most important thing for a buyer is to know exactly what they want.  Buyers need to have a good handle on their ideal price range, must-haves and narrow down the geography to now more than three neighborhoods.  This will better position buyers to secure a homeright down to the day it hits the market.  

At the risk of sounding like a broken record, pre-approval is key.  Know what you’ve got in the bank and whether your savings will be enough.  Set price alerts on well-known house hunting sites and nail down an experienced realtor who is well-connected and can get a jump on new-to-market listings or potential listings for you.  Know the lifestyle you want and what it will cost to make it happen.  Set aside reserves for the usual home repairs that accompany daily wear and tear and reduce your stress level by knowing you have some security in the bank.  

While most of these reminders might seem a bit “old school”, financial preparation is imperative when it comes to securing your new home.  Sit down with an experienced realtor who will guide you through the process smoothly and will help you to determine your affordability factor.  

For more information, contact The Aitken Home Team today!

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Phil Aitken, Owner/Broker
Phil Aitken is the Owner/Broker with Your Home Sold Guaranteed Realty - Phil Aitken Home Team and has over 13 years of Real Estate experience. Phil’s faith and desire for his family’s continued security fuel his business growth and leadership. The Phil Aitken Home Team continues to profoundly impact the people of Jacksonville via supporting several faith-based organizations. Phil gives back a portion of every real estate transaction to The Tim Tebow Foundation and Rethreaded. Find Phil's full story here.