1.   How Much Time Do I Need to Shop For My New Home?

You should start getting serious about looking for your new home about three months before you want to move in.  The National Association of Realtors says it takes an average of 7 weeks to search for and find the home you want to purchase and then another 6 weeks from the time you have a contract on your new home until the day you close.  The average Buyer looks at 15 homes before making up his/her mind which one to buy.    

2.     How Long Must I Live in My New Home Before I Can Expect Some Appreciation?                    

In the Atlanta real estate market, property appreciation historically has been slow and steady.  Of course, some  areas of town appreciate faster and some slower.  Traditionally, single family homes appreciate faster than condominiums, and resale single family homes appreciate faster than brand new  homes, especially if the builder is still building when you want to move.  The Rule of Thumb is you should plan on living in your new home 3 to 4 years before you can expect to break even on the combined Purchase and Sale.  If you’re pretty sure you will be moving in 2 to 3 years, it may be in your best interests not to buy at this time.   

3.   Do you have an apartment lease which extends for several months?

If you’re buying a resale home, you may be able to close “now” to lock your interest rate, and “lease” the home back to the seller for up to 90 days. Sometimes, it is best to break a lease and pay your penalties rather than wait for your lease to terminate.  In the long run, doing so can save you hundreds and sometimes thousands of dollars.  That’s because interest rates rise and house prices rise making the new cost of ownership far more costly than the termination fees.  One choice is not right for everyone.  If in doubt, ask us to calculate the differences for you to see what is best for you.   

4.   Credit Issues – do I clear them up first or “bite the bullet” now?

Sometimes it is better to “bite the bullet” and pay a higher rate of interest now and then refinance later when your credit has been repaired.  While you are working on your credit score, the cost of housing is increasing by 3% or 4% a year.  Interest rates may also rise.  You could save thousands of dollars by buying now and refinancing later.  Ask us to calculate the differences for you to see which route is best for you.   

Let us discuss these issues with you…We will help you determine what is in your best interests.