Those living in Delaware and many other parts of the country may find it less expensive to rent a property than to own one. According to a report from Realtor.com, the cost to buy a home increased 14 percent between July 2017 and July 2018. The cost includes taxes and insurance as well the mortgage payment itself. The cost to rent a home increased by only 4 percent during that time period.
There are many items that Delaware residents should consider when it comes to selling their home. For instance, selling a home on a Wednesday or Thursday could help it sell for the best price or get it off the market the fastest. This is because people start making plans to see homes just prior to the weekend. Therefore, a home listed on these days are likely to be seen by those looking at listings online.
Delaware residents who place their homes on the market should be prepared for the fact that their homes may not sell right away. Not every area in the country is a seller's market in which homes can receive multiple buying offers that are above asking price. Individuals who are struggling to sell their home may want to take the time to consider why their home is not attracting the buyers they want.
Potential homeowners in Delaware often believe that they must have 20 percent of the total sale price available for a down payment in order to purchase a property. Given the prices of real estate, this figure can seem to put homeownership well out of the reach of many individuals, couples and families. However, it does not actually take one-fifth of the total purchase price in cash in order to be able to buy a home. The difference between the cash down payment and this amount is guaranteed by mortgage insurance.
Student loan debt is a significant financial burden for many people in Delaware and across the country, and the weight of this debt can prevent people from taking steps like buying a home. Around the United States, there are over 44 million people who owe a total of $1.5 trillion in student debt. Of those, around 2.2 million people have a balance of $100,000 or higher, and $31 billion in student loan debt is currently 90 days or more overdue. Borrowers aged 40 and younger are particularly likely to carry student debt as they owe $850 billion of the outstanding student loan burden.
People shopping for homes in Delaware are likely to encounter rising home prices. A nationwide imbalance between the numbers of sellers and buyers has acted to increase listing prices and shorten the time that available homes spend on the market. A report produced by the data and analytics firm CoreLogic recorded a 1.1 percent increase in home prices between April and May 2018. Since May 2017, home prices have gone up 7.1 percent. CoreLogic predicts that by May 2019, home prices will have gone up by another 5.15 percent.
When buying a home in Delaware, it is important to put in as many safeguards as possible. For instance, at an open house, buyers should ask for a seller's property disclosure. It will list everything that the seller knows is wrong with the home or was built without proper permission. As a general rule, a disclosure form that has nothing on it is a bigger warning sign than a form with several problems listed on it.
Those who are currently renting in Delaware may long to be homeowners. Considering the current state of the housing market, however, it could make more sense for renters to put off making a home purchase. Those who are interested in buying a first home should make sure that they won't be house poor. This means that a homeowner is constantly at risk of losing the property.
Homebuyers in Delaware often focus on the prices listed for properties, but price alone does not represent the total amount that a person will spend when purchasing a home. Numerous fees, insurance premiums and commissions create what are known as closing costs. Closing costs routinely total several thousand dollars. A typical property transaction will split these costs between the buyer and seller, although the parties can negotiate the details and shift some expenses one way or the other.
While many people in Delaware would like a home with a tree in the yard, this could be more trouble than it is worth. For instance, if the tree begins to rot, there could be a higher risk for extensive property damage or bodily injury. Furthermore, those that have holes, fractures or lean to one side might need to be removed.