Your home is your sanctuary. It is important to take pride in one’s home. It is where you sleep every night, have family dinners, and make memories that will last a lifetime. You can look back at your house and call it solely yours. Purchasing a home can be an exciting endeavor. There are several new trends in the real estate market. It is wise to keep note of them as you search for your new sanctuary.
When applying for a home loan, you are likely to undergo a credit check. A poor credit score is often the reason that the home buying ship sinks. How are credit checks done? It can be a complicated process. There are many different factors that go into credit score calculation. The payment history, length of credit, and outstanding debt the borrower has incurred. Your bill payment promptness is also a significant factor in the score. This makes up 35% of the score. When bills are paid on time and early, that will be taken into account. Conversely, late payments and bankruptcies will cause deductions to the score.
The outstanding debt the borrower has makes up 30% of the score. The debt is calculated based on the percentage of the total credit line. Two different debts may have the same dollar amount. If there are, however, two different credit lines, the one with the lower percentage will have a better score. Other factors include credit history, new accounts, and the type of account. For example, mortgage debt and auto loans are more significant than a credit card account.
Selling your home
Selling your home can be a long and stressful process. This is even more complicated if you’re selling while going through a divorce. There are a number of steps to take and factors to consider during the house sale. They will help you navigate this process as smoothly as possible.
Pricing the house is the biggest key to the sale. You will want to have a price right out of the gate. This can help sell the house as quickly as possible, especially if it’s on the lower end. Pricing it too high will likely drag the sale out even longer. The escrow process typically lasts “30 to 60 days, however, you can have an easier time finding a buyer with an immediate price. A couple, going through a divorce, will likely want to sell their former home as quickly as possible. This can help to alleviate a major concern during this stressful process.
New trends to consider
There are several new home trends to consider in the real estate world. Whether you are a buyer, a seller, or both, there are some things you should be aware of. They can help change your purview and strategy.
Generational shifts are important to consider in the housing market. Members of the older generations, namely baby boomers and generation x are getting up there in age. The concept of downsizing is incredibly popular among older residents. Their children are growing up and moving out on their own. As empty nest syndrome sets in, seniors look for something smaller since they no longer need a home built for a large family. Smaller, one level homes are in high demand. States and areas with a large retired population face even greater competition for their properties.
The younger generations, including millennials and generation z are also entering the housing market. The younger buyer fits a vastly different profile than their older counterparts. Many of them are facing financial issues such as student loan debt. They are also likely low on the totem pole in their place of employment. They may be looking for smaller, more affordable starter homes. Despite the generational differences, there are many similarities in their buying. Whether it’s a starter home for a young family or a property for a downsizing couples, the demand for smaller more affordable homes are trending upwards.
The rebirth of suburbia
In the early part of the last decade, there was a developing shift in housing trends. There was a city living renaissance, with more and more young people preferring to live right in the midst of larger cities. Those same young people are getting married and starting a family. The city is no longer feasible for many of them. This has created a rebirth in suburban house buying.
With the millennial generation starting families of their own, the suburbs remain a popular living choice. The growth of the city population has been in a steady decline. Suburban living growth has seen several increases. The younger generations are interested in something small and affordable, but they still want easy access to the cities. The term “hipsturbia” was coined to describe this trend. For a young family looking to buy, the suburbs cannot be counted out.
Foreclosure is the unfortunate consequence after failure to make mortgage payments. If you find yourself in this situation, it can be a stressful and agonizing endeavor. What might surprise you is that many foreclosed homes are still occupied. A study found that up to 47% of foreclosed homes still have occupants in them. This does not necessarily mean that people are living in the home for free. It can take a while to actually sell the house. If left vacant, the property is vulnerable to vandalism and parties. They would rather someone stay there until a buyer presents themselves. This, however, is not a feasible long-term solution. Some options you may have are to fight in court for a possible stay or delay. You can also work with the bank and temporarily rent to them.
Purchasing a home is an exciting, yet nerve-racking time. Consider these real estate trends and tips while going through the process. Whether you’re buying or selling, conducting pertinent research first is essential.