According to the most recent reports, mortgage interest rates in the United States have reached record lows for the 12th time in 2020. If buyers have noticed rates in their area becoming lower on a consistent basis, chances are they’ve also found themselves checking their local listings or wondering if it’s a good idea to reach out to a local real estate firm about buying a new home.
Plenty of buyers who have been contemplating a purchase and asking themselves, “Why buy a new home now?” In response to this question, we’ve outlined five of the top advantages of investing in a new home down below to clear up any confusion.
1. Interest Rates Are Low
Primarily, the draw of buying a house right now, for a lot of folks, is the fact that interest rates are lower than they’ve been in years. The average interest rate for a 30-year fixed loan has dropped to a mere 2.78 percent. At this time in 2019, the average interest rate was 3.70 percent, and in November of 2018, it was a whopping 4.87 percent.
If they have been wary of buying a house due to the additional money they’d need to pay in interest, now is a good time for shoppers to reconsider. Lower interest rates contribute to homeownership being more accessible to all kinds of homebuyers, including first-time buyers who have been seemingly shut out in the past.
2. Strike While the Iron’s Hot
Certainly, there’s a significant amount of uncertainty in the world right now. The real estate market is not immune, either.
At this point in time, interest rates are low, and there are many advantages to taking the plunge and becoming a homeowner. It’s important for those who are on the fence to remember, too, that the market likely will not stay this way forever. Eventually, interest rates will start to climb, and homeownership will not be as accessible as it is presently.
Understandably, folks are hesitant about making big investments now. However, being overly cautious could cause them to miss out on an opportunity to buy a home at a lower price and with lower interest rates.
3. High-Value Properties Are More Accessible
Thanks to the remarkable decreases in interest rates that have taken place this year, many homebuyers now have access to high-value properties that they might not have been able to afford previously.
If buyers have had their eyes on a specific home or home type for a while and thought it was out of their price range, they might be able to afford it now that interest rates are lower and fewer people are buying homes across the board. Sellers might be eager to free themselves of the property, which could mean more affordable prices and a potentially speedier closing process.
4. Less Risk for Investors
Real estate investors are currently facing fewer risks than they have in the past, too. This is particularly true for investors who are looking to buy and hold properties, rather than those who are hoping to buy and flip houses.
According to the majority of investors (64 percent), they have plans to increase and/or keep their acquisitions in 2020. If they’re an investor or looking to explore the investment game, there are opportunities for buyers among those who have been renting out properties as vacation homes who need to quickly sell due to a lack of travel. This is also the case among some mom-and-pop landlords.
5. Enjoy More Control and Comfort
Those who are looking to buy a home now, whether they’re first-time buyers or simply looking to upgrade, can enjoy a sense of control and comfort during a rather tumultuous point in the world’s history when they invest in a new property.
Homeownership offers a sense of certainty from which many of us could benefit right now. Homeowners can enjoy a stable monthly house payment, for example, and with such low interest rates, there’s a good chance that they’ll pay less per month as a homeowner than they would as a renter.
Don’t forget, there’s also the peace of mind that comes from knowing the home a person has purchased is theirs, as long as they continue to pay their mortgage on time, of course.
Tips for Buying a Home Now
With these advantages in mind, many buyers might be feeling more interested in buying a new home now? If so, here are some tips that will help to simplify the search and help them move into their dream home sooner:
Check Credit Score
Generally speaking, it’s best for shoppers to check their credit score and overall credit report before they embark on their home buying journey. Buyers should take a look at their report to learn where they stand and correct any mistakes that have the potential to lower their score and disqualify them from a mortgage loan.
Before they start planning the decor or crafting their new home checklist, buyers ought to reach out to their lender, and talk to them about pre-approval for a home loan. Pre-approval gives a clear idea of what’s affordable to each individual buyer.
Work with an Experienced Agent
Don’t trust just anyone when looking for a dream home. Research and find an experienced agent or team of realtors with access to a sophisticated multiple listing service and insider knowledge of what it takes to find a great home at the right price in a specific area.
Prepare for Potential Delays
During the year 2020 (and likely well into 2021, at least), anticipate certain potential delays related to a home purchase. Protocols have changed this year, and some of the mechanics of the loan approvals and closings have been affected. This includes the home inspection and appraisal process, title searches, and paperwork processing.
Why Buy a New Home Now? Why Not?
We’ve illustrated that there are plenty of benefits that come with purchasing a new home at this point in 2020. Rates are at record lows throughout the country, and Bucks County real estate is no exception.
Now that you can answer the question, “Why buy a new home now?”, are you interested in beginning your search for Bucks County Homes for sale? If so, the Tri-County Team is here to assist. Contact us today by phone or online. We can’t wait to help you find your dream home!