We speak with realtors across the country who are sharing more and more of the same stories: home listings are going fast.
In many cases, a home listing spends as little as a few hours on the market before receiving multiple bids. Low inventory has turned many communities into small-scale bidding wars.
At BBMC, we think it's important for potential buyers, who are sitting on the fence between renting or buying, to understand a few factors about ownership that they may have ignored until now.
1. Home Values May Appreciate
Owning a home is the single-most valuable asset any American will ever have, in their lifetime, period.
A strong market of buyers who are capable of affordable home ownership will mean a better overall market experience for everyone. Therefore, a buyer in today's market is tapping into the potential of a healthy market so that one day their initial property valuation may increase. This is important when it comes time to refinance that home, or upgrade (downgrade) to a new property.
When you rent a property, the value of that home only benefits the landlord (whose mortgage you are supplementing with your rent).
2. Successful Home Investment is Time Consuming
Time in today's tight market is of the utmost-importance. If more homes were available, regardless of the amount of buyers, you may have more time in deciding if its worth it to rent or buy.
Unfortunately, no one has that luxury. A hard decision must be made, with urgency, in order to react to the low housing inventory.
When you pay a mortgage, not only are you building tangible equity for a future investment, but you're riding the wave of property valuation through the ups-and-downs (hopefully more 'ups'). If you choose to rent, your landlord is the only person who stands to benefit from the value of said property.
3. Gain Financial Independence
We've all been there at one point: having a landlord at your beckon call for when something on the property goes awry is very convenient. Alternatively, you could be in the minority of renters who have bad landlord experiences, so this next point may not mean much to you anyway.
Nevertheless, home ownership grants unparalleled financial independence to buyers. It's never fun to find out – the hard way – that your roof needs a repair, or that your property's aging water heater has finally bit the dust. But these small experiences compound over time to true freedom over your financial investment.
The best way to start your journey before ownership? Do your homework. We don't want you to actively buy a cheap house with a laundry-list of issues (unless that's your thing). Finding out every detail about a home, and the experience of the homes surrounding the property, will do wonders for establishing your financial independence before you place a bid.
There are dozens of reasons anyone on the fence should jump over to ownership, but today's tight window for buying doesn't allow us the time to explain them all. Get busy with the legwork on researching your potential home, and BBMC Mortgage will be standing by to receive your call when it's time to step into a mortgage. Good luck!