Have you noticed a ton of people moving recently? Why is that? Today I want to go over the factors in our market that cause people to move:
1. Low interest rates. Even with rising prices, low interest rates make buying a home more affordable. Right now, interest rates are down from where they were in May of this year. They were already low in May, so buyers can afford to move into nicer homes.
2. People are leaving the state. Since the pandemic, more people have had the opportunity to work from home. This means people don’t need to stay in Illinois for their job, so they have the opportunity to move closer to family, head south for nicer weather, or leave because of high state taxes.
"Low interest rates make buying a home more affordable."
3. People are using this moment to downsize. Whether older people are moving into a smaller home or transitioning into an assisted living facility, a large chunk of the older population is using this opportunity to change their lifestyles....
“Should I do a pre-listing inspection?” That’s a question I often get asked. My advice is not to do it. I could put 10 inspectors in a house and get 10 different lists of things to repair.
"You don't want to waste time, energy, and money doing a pre-inspection."
The reality is that most buyers will do their own inspection. The pre-inspection is going to give you one list of around 10 items, and when the buyer comes in, they're going to pay to have another inspector who’ll give you a different list. If you had a pre-inspection list, you might be frustrated because now you’d have another list of items to repair.
I've had situations where inspectors have said that X needs to be fixed, then other inspectors come in and say that it doesn't. You need to be careful because you don't want to waste time, energy, and money doing a pre-listing inspection when the only inspection that matters is the one that the buyer is going to do. That's the one you need to deal with. However, if you have a major issue, chances are that you're going to have to fix it no...
If you’re considering buying a home within the next three to 12 months, have you thought about what needs to be done first? Here are my recommendations for what to do when preparing to purchase a property:
1. Talk to a lender. The reason you want to speak to them this early is that you need to confirm the status of your credit, what you can qualify for, and if debts need to be paid off before moving forward. The better your credit score and the less debt you have, the lower your interest rate will be. Your lender will tell you if there’s anything you need to do. For example, they may say that instead of putting so much money down on a house, it would be better if you paid off your car loan.
"Start doing your due diligence early—it can be fun!"
2. Drive around and look at different areas. Find out which areas you’re interested in purchasing in because you don’t want to...