Many people are talking about the challenges of homebuying or the likelihood of a market crash but is anyone discussing how to overcome the roadblocks that we tend to harp on? There’s a lot of information and many opinions but has anyone talked to you personally? Has anyone asked you about your concerns and how to handle them? Let’s get the conversation started.
Interest Rate - If you have bought a house in the last 8 years, you are probably having a hard time wrapping your head around an interest rate that is about double of what you currently have.
Values - Not only are the rates double, but with appreciation between 10-30% in the last few years, you are also having to think about the higher values as well since the last time you purchased.
Inventory - If I were to move to get a bigger home (or whatever), where would I go? There isn’t any inventory!
Timing - And if you have to sell your house before buying the next one, do you put your house up before you find the next one? How would all that timing work out.
Homeowners, have you had any of these thoughts recently?
It makes a lot of sense that you might. But please, don’t stop there! Here are some ways to get around these “barriers.”
Interest Rate - DATE the rate, MARRY the house! Rates will go down from where they are now, but they likely will never see the 2% or 3% in our lifetime. The faster you can come to accept this, the better you will be to continue building your wealth through real estate. And when the rates do go down, you can easily refinance the loan.
Values - I have a hard time with this too. I bought my first house in 2014, for $248,000 in one of the hottest neighborhoods in Intown Atlanta. It is difficult to find houses that are move-in ready at that price point, Inside the Perimeter or Outside the Perimeter. We need to get over this mental block as well. The prices today, we will likely look back on in a couple years and would rather have paid that amount than what is it going to be worth then.
Inventory - Having a great agent with the best lender connections can greatly resolve this problem. See number 4 below for another reason this will be okay.
Timing - Have you heard of a bridge loan being offered through lenders right now? This allows you to be ready to close on the bridge loan when you find your next house and use the equity for your home before actually selling it!* This means you can be patient for the right house, you can make an offer NOT contingent on the sale of your home, and you could even move into your new home while I work hard to sell your previous one.
As an investor, I am having to process these objections for myself also. They can be real barriers in our mind, but we have to push through them! Owning real estate is the tried and true way to build wealth. It will cost you too much to let these stop you.
"Where there is a will, there is a way!" I am someone who is committed to helping you find your way!
*In order to close on the next home before selling your next home, you will need to qualify for both loans on your debt to income ratio.