Many businesses, large and small alike, have been impacted by the pandemic. Global supply chains continue to reel under the strain, and governments attempt to mitigate the economic risks. Still, the U.S. housing market continues uninterrupted with increasing home values, home sales, and historically low interest rates. Many of our Rhode Island customers use our moving day rentals at Christy’s Car and Truck Rental (Sunnyside Ave). To that end, here are some things to keep in mind when looking to move.
Home Value vs. Sale Price
It’s a seller’s market right now in terms of home sales. Many homes sell the day they hit the market, with sellers entertaining multiple offers that may be higher than the asking price. Sometimes, houses even sell for more than they’re worth, which can cause issues when you’re looking to move.
First, lenders won’t finance more than a certain amount of loan to value. This means that a house for $430,000 should appraise for at least $400,000 for a lending institution to fund the deal. Second, you probably remember the housing bubble of 2008. Now, we don’t claim to be experts or to give financial advice. However, everyone should realize the risk associated with buying something for more than it’s worth.
Houses tend to appreciate, so even a house purchased for more than its value should catch up or even surpass the sale price. That being said, nothing is guaranteed, and no one makes a purchase anticipating financial hardship. For this reason, you should do your research and make a fully informed decision. Consequently, make sure your appraisal accurately reflects the home value and that the purchase price makes sense.
Wisdom vs. Time
In addition to increased home values and sales prices, the time on the market is short. As previously stated, multiple offers sometimes are received the day a house is listed. While some buyers know exactly what they want and feel confident making an offer, others prefer to take a little time in their decision-making. If possible, try not to let anxiety and pressure rule your decision when you’re looking to move. Houses are long-term investments, so take the time you need to ensure wisdom and peace in your buying decision. Buyer’s remorse can be horrific when it relates to a real estate purchase.
Another aspect to consider when looking for a house and determining your budget is the added costs. For instance, many people use escrow accounts to pay property taxes and insurance, which are rolled into the monthly payment. Moreover, many subdivisions have monthly homeowner’s association dues, which can range from $100-$450 a month on top of your mortgage payment. Finally, private mortgage insurance is required for anyone who doesn’t have at least 20% of the home price in a down payment.
Looking to Move?
Moving can be stressful. Take some of the stress off yourself during the moving process. If you’re a Rhode Island resident, we encourage you to consider Christy’s for your moving day. We provide cargo vans, box trucks, and more at reasonable prices. Check out our moving trucks, reserve a vehicle online, or call us today at (401) 944-9800 to reserve your vehicle.