Saving up for a 20 percent down payment, while preferred, isn’t always the best strategy for buying a home. Here are three times you shouldn’t bother with it.
1. Prices are going up fast. You’re interested in a house selling for $500,000, but you only have $50,000 saved up. You can wait until you’ve saved the full 20 percent or buy now and pay insurance on the mortgage. The problem is that if prices go up, that 20 percent down payment will also increase. In these cases, it may be more advantageous to buy now.
2. You need the cash. Sometimes a problem with the house only becomes apparent after the purchase is finalized. Or, you may have planned to make some repairs or update the appliances. In such cases, putting down less than 20 per cent lets you deal with these expenses instead of having to take out an additional loan.
3. You don’t want to wait. If you’re starting a family, it may be worth it to pay insurance on your mortgage to ensure that you don’t miss out on a great home.
Being flexible with your down payment could pay off. It’s a matter of considering the market, your future plans and your current needs.
How to spot hidden defects
When you buy a house, you naturally expect the seller to tell you the truth about the quality of the construction. However, you also have a responsibility to take reasonable precautions before signing the contract. Otherwise, you could face unpleasant surprises and have no legal recourse to remedy the situation.
A visual examination of the property is crucial to ensure a seamless transaction and protect you from possible hidden defects. Be on the lookout for any clues that arouse suspicion. Rather than relying on your own judgment, trust a building expert to conduct a thorough inspection to confirm your suspicions and alleviate your concerns.
Hidden flaws may become apparent only after the purchase. In this case, the seller could refuse to take responsibility. If the matter goes to court, you’ll have a better chance of winning your case if you’ve shown that you practiced due diligence before the sale. Therefore, it’s essential to find out about the consumer laws in place to know your duties and legal recourse.
Warren County Market Report for April 2022 with Jen Avery
Watch this video for a quick summary of Warren County real estate for April 2022. Is the market starting to balance back out again as interest rates begin to climb? I can share an observation or example from a listing perspective: The buyers who are offering are asking to please lock in their rates ASAP vs. previously buyers who would allow a 60-day close if it were the seller’s preference.
Buyers were willing to do anything to win the bid. Buyer desperation is not as severe now, in my opinion. Charts demonstrate the changes in the market, so be sure to click play!
In general summary:
1. New Listings are DOWN -15.9%.
2. New Pending DOWN -15.7%.
3. Closed sales are DOWN -26%
4. Average Median Sold $350,500
5. Average Days on Market 25
*If you would like a copy of this report emailed to you, please send a request to firstname.lastname@example.org.
Resource: April 2022 Market Stats by ShowingTime
Bright MLS: Statistics calculated May 2022.
Now some Community News
House of Hope
Empty Bowl Supper 2022 – Was a success!
Thank you to all of the businesses and supporters who sponsored the Empty Bowl Supper this year. You helped make it a great success bringing in about $13,000 for the House of Hope.
Click here to view video from event.
We See You, Warren County – sign up (free) online to join this “movement” to help bring our community together. Follow on Facebook! You are going to love it! #WeCUWC
Sign up here.
Rock & Stroll Event – May 10
Warren Coalition organized the Rock N Stroll
Healthy living for kids 4-13. Drug prevention week.
Rock & Stroll helps to address that by educating children about how to handle their emotions and about healthy choices regarding food and exercise.
Click here for full album.
Chamber of Commerce – May 21
34th Annual Wine & Craft Festival 2022
Watch this video with locals who became movie stars for a day!
Get your tickets here today!
Humane Society of Warren County
Rough Tough & Scruffy – DATE RESCHEDULED June 18
Grab a friend and sign up for a canoe race!!! Vendors, music, and food for all to enjoy. $10.00 entry fee. Proceeds benefit the Humane Society of Warren County. Enjoy the gorgeous venue at Hazard Mill Farms, Bentonville.
Yard Sale & Bake Sale – June 2 & 3
Stop out at the Humane Society of Warren County for a two-day yard sale! Pay by donation! Proceeds from the yard sale go to the Humane Society of Warren County.
Looking for BAKERS!! The Humane Society is pairing up with the House of Hope and has invited them to run the bake sale this year at the yard sale. Let’s donate some delicious goods for the sale!!
As mortgage rates spike, Virginia’s housing market shifts
According to the March 2022 Virginia Home Sales Report released by Virginia REALTORS®, while the spring market is off to a strong start, there are some indications of changing market conditions.
Statewide, there were 11,446 home sales in March 2022, down 6% from a year ago. This decline is due to last year being an exceptionally busy market and also to the very low inventory which has provided buyers with very few options.
In March, Virginia’s median home sales price was $375,000—nearly 12% higher than in March of last year. While year-over-year sales slowed, Virginia did see a significant jump of more than 40% in sales between February and March 2022. This uptick reflects typical seasonal housing market patterns; however, this year, it was also likely fueled by the recent spike in mortgage rates.
Over the past few weeks, rates have risen faster than they have in nearly 30 years. In the second week of April, the average rate on a 30-year fixed-rate mortgage hit 5% for the first time in 11 years.
“Mortgage rates are rising more quickly than anticipated and will likely rise further during the year,” says Virginia REALTORS® Chief Economist Ryan Price. “Many buyers are eager to purchase a home before rates increase further.”
In Virginia, supply remains historically low; inventory is now less than a third of what it was five years ago. Intense competition resulted in homes selling for 2.6% higher than list price, on average, in March. This is the highest monthly average sold-to-list price ratio in at least a decade.
While these numbers may be daunting to potential buyers, there is some indication that supply is expanding. In March, Virginia’s inventory expanded with an uptick in new listings and a slight slowdown in buyer activity. At the end of March, there were about 1,500 more active listings statewide across Virginia, a 12.1% increase from the end of February.
“It is likely that Virginia’s inventory of homes for sale will expand over the coming months,” says Virginia REALTORS® 2022 President Denise Ramey. “Many sellers are feeling pressure from increasing mortgage rates, which will lead some to list their home for property now, before higher rates lead to less buyer interest.”
The Virginia Home Sales Report is published by Virginia REALTORS®. Click here to view the full March 2022 Virginia Home Sales Report.
How to decide if you should buy a home in the city or suburbs
The location where you choose to live will impact your lifestyle and financial situation. Here are six things to consider before deciding if you should buy your new home in the city or the suburbs.
Homes are generally more affordable in the suburbs. However, you’ll likely spend extra money on transportation. Make sure you do the math before making a decision.
Libraries, restaurants, stores, and hospitals are often within walking distance in the city. However, this typically isn’t the case in the suburbs. Nevertheless, some municipalities have small shops.
If you live in the suburbs and work in the city, you may spend a lot of time driving back and forth. If you live close to where you work, however, your commute will likely be shorter.
Homes and yards are generally larger in the suburbs. This can be a major advantage if you have children. However, a big home requires considerable maintenance.
Unless there’s a large factory nearby, air quality tends to be better in the suburbs. There’s also considerably less noise.
If you like the hustle and bustle of the city and frequently go out, you may not be happy living in the suburbs.
Do you know where you want to live? If so, contact a real estate agent to help you find the perfect home.
10 signs you’re ready to own a home
Do you often think about buying a home but aren’t sure if you’re ready to take the plunge? Here are 10 signs you may be ready for homeownership.
1. You have a good credit score and enough money for a down payment.
2. You’re willing to make sacrifices and change your spending habits to pay off your mortgage and cover the costs of buying a home.
3. You’re already looking at real estate ads, staying on top of market trends, and talking about buying a home.
4. You have a stable job with a regular income and want to settle down in a particular area.
5. You’re tired of being dependent on a landlord to maintain your living space.
6. You can’t stand hearing your neighbors and want more privacy.
7. You’re resourceful and hard-working and don’t dread the responsibilities of maintaining a home and yard.
8. You’re expecting a child and want to have enough space for them to play.
9. You’d like to get a pet, and very few rental properties in your area allow animals.
10. You really want to own a home and can afford it.
If you agree with the above statements, it may be time to start shopping for a mortgage.
Real Estate and Community News (March/April 2022) with Jen Avery, REALTOR
Spring is arriving. We see beautiful flowers starting to sprout. Red buds and new baby leaves are popping all around. And looking forward to this weekend… Happy Easter!
House of Hope
- Empty Bowl Supper – April 30 from 12noon to 3m
House of Hope is pleased to bring the Empty Bowl Supper to town again this year. We will be hosting the event as a “to go” event with all of our favorite pre packaged soups.
- Event Link: https://fb.me/e/17pNYHd6w
- LIVE MUSIC: Passage Creek Rising will be playing at the Main Street Gazebo.
- BOWLS: Bowls will be on display up and down Main Street. The day of the event we will gather all of the bowls and set them up inside of Honey & Hops – 212 E Main Street, Front Royal VA.
- ONE STOP: Honey & Hops will be the central location for tickets, bowls, and to go soups with a few cookies for good measure!!
- COMMUNITY PAINTING: Please remember, the community is invited to paint bowls for this event. Arline Link of Explore Art & Clay – 501 E Main Street, Front Royal VA is the bowl queen! She will be throwing bowls and getting them ready for kids, grown ups, groups, seniors…anyone who is interested to paint in preparation for the event.
Humane Society of Warren County
- Barks and Bags – SOLD OUT EVENT Update to follow.
Rotary Club of Warren County
- Ride With Rotary
The Ride With Rotary was a success! Over $13,500 in sponsorship money alone! 76 registered riders. Great feedback about the ride. Cyclists said the routes were very well planned and rest stops, registration, parking were all well organized.
- Link to enjoy photos: Ride with Rotary photos
- We See You, Warren County – sign up (free) online to join this “movement” to help bring our community together. Follow on Facebook! You are going to love it! #WeCUWC
Warren County Market Report for March 2022 with Jen Avery, REALTOR
Watch this video for a quick summary of Warren County real estate for March 2022. Spring market has arrived. We are still struggling with enough inventory for the demand of buyers. Charts demonstrate the changes in the market, so be sure to click play!
In general summary:
- New Listings are DOWN -10.9%.
- New Pending DOWN -17.4%.
- Closed sales are UP 5.7%
- Average Median Sold $350,000
- Average Days on Market 26
*If you would like a copy of this report emailed to you, please send request to email@example.com.
Resource: February 2022 Market Stats by ShowingTime
Bright MLS: Statistics calculated March 2022.
Jennifer Avery, REALTOR® “Your Happy Home Expert!”
BPOR, SRS, CNE, E-Pro Certified | Licensed in VA
firstname.lastname@example.org | 540-683-0790 | www.jenaveryrealtor.com
CRUM REALTY, INC| 318 S Loudoun St, Winchester VA 22601 | 540-662-0400