What are Your Housing Goals this Year?

If buying or selling a home is part of your dreams for 2023, it’s essential for you to understand today’s housing market, define your goals, and work with industry experts to bring your homeownership vision into focus.

In the last year, high inflation had a big impact on the economy, the housing market, and likely on your wallet too. That’s why it’s critical to have a clear understanding of not just the market today, but also what you want out of it when you buy or sell a home. Danielle Hale, Chief Economist at realtor.com, explains:

“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, so that you can stay in your home long enough that buying is a sound financial decision.”

What does she mean by that?

Homeownership is typically a long-term investment. The flipping phenomenon is a fairly new idea and doesn’t always work to the benefit of the rehabber. Over time, property will increase in value (gain equity) and potentially make you a profit when you sell. Then you’re able to take that profit/equity to purchase another home, often more expensive. Sometimes in better condition or in a superior neighborhood. But all that takes time.

Here are a few questions you can start thinking through as you fine tune your HOUSING goals for 2023.

1. What’s Motivating You?

You’re dreaming about making a move for a reason – what is it? No matter what’s happening in the market, there are still many compelling reasons to buy a home today. Your needs may have changed in a way your current house can’t address, or you could be ready to step into homeownership for the first time and have a space that’s truly your own. Use what’s motivating you as a guidepost in partnership with an expert advisor to help make sure your move will give you a lasting sense of accomplishment.

2. What Will Your Next Home Look Like?

You know you want to move, but how would you describe your next home? The available supply of homes for sale has grown, and that could mean more options to choose from when you buy. Just be sure to keep your budget in mind and work with a trusted real estate professional to balance your wants and needs. The better you understand what’s essential and where you can be flexible, the easier it can be to find the home that’s right for you.

I start with asking a home buyer to list everything they want in a home. Then take that list and prioritize it into must-haves, would like to have, and not a requirement.

3. How Ready Are You To Buy?

Your Budget

Getting clear on your budget and savings is essential before you get too far into the process. Working with a local agent and a lender early is the best way to make sure you’re in a good position to buy. This could include planning how much to save for a down payment, getting pre-approved for a home loan, and assessing your current home equity if your move involves selling your existing house.

Prepare
Buying a home is not only a learning process, it requires preparation. For example, if you’re self-employed and have been submitting your taxes like you’re self-employed, then you should start planning for your home purchase two years in advance. Why?

The mortgage lender is going to require you to submit two years of taxes. You’ll want to show that you not only made money, but you paid taxes. Doing your taxes will be a new strategy to accompany your home purchase.

A Professional Will Guide You Through Every Step of the Process

Buying or selling a home is a big process that takes expertise to navigate. If that feels a bit overwhelming, you aren’t alone. According to a recent Harris Poll survey, one in five respondents see a lack of information or knowledge about the homebuying process as a barrier from owning a home. Don’t let uncertainty hold you back from your goals this year. A trusted expert can bridge that gap and give you the best advice and information about today’s market.

Bottom Line

Let’s connect to plan how your dreams for 2023 can become a reality.