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Arden
Arden is an unincorporated community located in southern Buncombe County, North Carolina, in the United States.[1] Arden is approximately considered the area between Skyland and Fletcher near the Hend ...
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Brevard is a city and the county seat of Transylvania County, North Carolina, United States, with a population of 7,609 as of the 2010 census. Brevard is located at the entrance to Pisgah National For ...
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The Town of Fletcher, which was incorporated in 1989, is located in Henderson County, North Carolina approximately 13 miles south of Asheville. The Town contains 6.1 square miles of land area and meas ...
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Hendersonville, North Carolina is a charming, 2,200-foot elevation mountain community steeped in history and cradled by the Blue Ridge Mountains. With a population of 13,000, it is a quarter the size ...
View moreKatie Kilpatrick
Real Estate AgentShould I Move with Today’s Mortgage Rates?
When mortgage rates spiked up over the last few years, some homeowners put their plans to move on pause. Maybe you did too because you didn’t want to sell and take on a higher mortgage rate for your next home. But is that still the right strategy for you?
In today’s market, data shows more homeowners are getting used to where rates are and thinking it may be time to move. As Mark Zandi, Chief Economist at Moody’s Analytics, explains:
“Listings are up a bit as life events and job changes are putting increasing pressure on locked-in homeowners to sell their homes. Homeowners may also be slowly coming to the realization that mortgage rates aren’t going back anywhere near the rate on their existing mortgage.”
A recent study from Bank of America sheds light on some of the things homeowners say would make them sell, even with rates where they are right now (see visual below):
What Would Motivate You To Move?
Now that you know why other people would move, take a minute to think about what would make a move worth it for you. Is it time to take a chance and go for your dream job, even though it’s not local? Are you looking for a neighborhood that has more to offer and a close-knit sense of community? Maybe you just need more space, you’re looking for your next great adventure, or you want a house that opens up rental opportunities to pad your income.
And here’s something else to consider. Mortgage rates are still expected to go down over the course of the year. And once that happens, there’s going to be a big rush of buyers jumping back into the market. While you could delay your plans until rates drop, you’ll only have more competition with those buyers if you do.
So, does that mean it’s worth it to move now, even with rates where they are? The answer is: that it depends.
You'll want to consider today’s mortgage rates, where they’re expected to go from here, and what would prompt you to want to make a change as you decide on your next steps. An expert can help with that.
Bottom Line
Other homeowners are getting used to rates and deciding to move. Let’s chat to go over what matters most to you and if it’s time for you to jump back into the market too.
Is It Better To Rent Than Buy a Home Right Now?
You may have seen reports in the news recently saying it’s more affordable to rent right now than it is to buy a home. And while that may be true in some markets if you just look at typical monthly payments, there’s one thing that the numbers aren’t factoring in: and that’s home equity. Here’s a look at how big of an impact equity can have and why it’s worth considering as you make your decision.
What the Headlines Are Based on
The graph below uses national data on the median rental payment from Realtor.com and median mortgage payment from the National Association of Realtors (NAR) to compare the two options. As the graph shows, especially if you’re not looking for a lot of space, it can be more affordable on a monthly basis to rent:
But if you’re looking for something with 2 bedrooms, the gap between the median rent and the median mortgage payment starts to shrink to a difference that may be more doable. The median monthly mortgage payment is $2,040. The median monthly rent for 2 bedrooms is $1,889. That’s a difference of about $151 a month. But here’s what happens when you factor in equity too.
How Equity Changes the Game
If you rent, your monthly rental payments only go toward covering your housing costs and your landlord’s expenses. So other than saving a bit more per month and maybe getting your rental deposit back when you move, the money you spent on housing each month is gone – forever.
When you buy, your monthly mortgage payment pays for your shelter, but it also acts as an investment. That investment grows in the form of equity as you make your mortgage payment each month and chip away at what you owe on your home loan. Your equity gets an extra boost as home values climb – which they typically do.
To give you a clearer idea of how equity can really stack up fast, here’s some data for you. Each quarter, Fannie Mae and Pulsenomics publish the results of the Home Price Expectations Survey (HPES). It asks more than 100 economists, real estate professionals, and investment and market strategists what they think will happen with home prices. In the latest release, those experts say home prices are going to keep going up over the next five years.
Here's an example of how equity builds based on the projections from the HPES (see graph below):
Imagine you purchased a home for $400,000 at the start of this year. Chances are, since you bought, you plan to stay put for a while. Based on the HPES projections, if you live there for 5 years, you could end up gaining over $83,000 in household wealth as your home grows in value.
Here’s how that stacks up compared to renting, using the overall median rent from above:
While you may save a bit on your monthly payments if you rent right now, you’ll also miss out on gaining equity.
So, what’s the big takeaway? Whether it makes more sense to rent or buy is going to vary based on your personal finances. It’s not a good idea to buy if the numbers truly don’t work for you. But, if you’re ready and able, adding equity as the final puzzle piece may be enough to help you realize buying is a better move in the long run.
Bottom Line
When it comes down to it, buying a home gives you a benefit renting just can’t provide – and that’s the chance to gain equity. If you want to take advantage of long-term home price appreciation, let’s go over your options.
It’s Not Just Mold: Every Homebuyer Should Be Checking for These 3 Other Hazards Before Buying
While mold often ranks high on a homebuyer's radar due to its often-visible growth and well-publicized health risks, it's far from the only concealed danger that could be lurking within a property.
Beyond the damp, musty presence of mold, buyers should ask about several other pervasive and potentially dangerous hazards during the home inspection process. These include the silent but serious threats of lead; the invisible, odorless gas known as radon; and the equally dangerous asbestos, often found in building materials from decades past.
Understanding how to accurately identify these hidden hazards is critical, as each presents unique challenges in detection and remediation. And as a buyer, it's also important to know what recourse you have if one of these hazards is found during the inspection.
Lead
Lead contamination can occur through paint, water pipes, or soil surrounding the home.
Any home built before 1978, the year lead-based paint was prohibited, could be at increased risk. Lead exposure can lead to severe health issues, especially in children. These include delays in development and damage to the nervous system. In adults, exposure can also result in headaches, abdominal pain, and anemia.
"Lead dust, not just paint chips, poses the biggest threat because it’s easily inhaled or ingested," says environmental testing expert Robert Weitz, founder of RTK Environmental Group.
Your home inspector may test for lead paint, but you should confirm that service is included. If it's not, you can hire a certified lead inspector for $300 to $700 on average.
If lead is found in or around the property, it's recommended that a lead abatement expert be hired to inspect the issue and resolve the problem.
"Lead cannot be removed by cleaning alone," says Weitz. "Professional abatement or encapsulation is needed to permanently and safely eliminate exposure."
According to HomeGuide, professional lead-based paint removal costs around $6 to $17 per square foot.
"With proper testing and professional abatement, the risks can be managed effectively," says Weitz.
Radon
Radon is a naturally occurring radioactive gas you can’t see or smell. It forms when uranium in the soil breaks down and can seep into homes through cracks or openings in the foundation, where it may become trapped and build up.
"Prior to buying a house, every homebuyer should get a radon test," says Insoo Park, CEO and founder of Ecosense, a provider of radon-detecting and monitoring solutions. "Radon's biggest concern is that long-term exposure is the leading cause of lung cancer among nonsmokers."
Costs for a professional radon test can range from $75 to $250, but if you're buying a home, it should be included in your home inspection.
If elevated radon levels are detected, it's definitely not something that should be taken lightly.
"You should immediately contact a certified radon mitigation professional, who will then assess the situation and recommend an appropriate mitigation system," says Park. "A mitigation system can reduce radon levels by up to 99%, which will bring the home to safe conditions."
Professionals typically install active depressurization systems that safely vent the gas outdoors, according to Park. "Sealing cracks in the foundation is also an important complementary step," he says.
The cost varies depending on the size of your home, but typically runs less than $4,000.
"What’s essential is to follow up with continuous or regular radon monitoring, because conditions can change over time," warns Park. "Technology today makes it easy to track radon levels in real time from your smartphone."
Asbestos
Asbestos fibers are microscopic and can cause serious illnesses when inhaled, including asbestosis, lung cancer, and mesothelioma. "These diseases often develop years after exposure," says Weitz.
Before 1978, when it was banned in some U.S. products, asbestos was widely used in insulation, tiles, siding, and other materials.
While asbestos testing was once a standard part of home inspections, it’s typically not included today. To confirm whether asbestos is present, you’ll need a special asbestos inspector.
The initial inspection, report, and lab fees cost $400 to $800 for an average 1,500-square-foot house, according to the White Lung Association.
If asbestos is found, you should contact an environmental testing firm to assess the situation. "If the asbestos is intact and undamaged, it may be safer to leave it in place and monitor it," says Weitz. "If it’s damaged or deteriorating, professional removal or encapsulation is required."
Only licensed asbestos abatement professionals should remove or seal asbestos materials, and it costs anywhere from $2,000 to $10,000, depending on the house.
It's certainly not cheap, but it's money well spent.
"As long as asbestos is properly managed or remediated by professionals, the home can still be a safe investment," says Weitz.
What homebuyers should do
If your dream home has any of these hidden hazards, what's the best way to proceed?
First, check to see if the seller is willing to fix the issue or cover the costs.
"You are in the position to ask for concessions, and should absolutely address the fact that one or more of these issues were found with the seller," says Cara Ameer, a real estate agent with Coldwell Banker who is licensed in Florida and California. "Just keep in mind that repair costs can exceed any concessions offered, since the issue may be more extensive than what an inspection or assessment reveals."
A pre-listing inspection is a smart move for sellers to identify and possibly fix issues upfront.
"That way, they can either handle the repairs, offer clear disclosures, or be ready to negotiate if buyers push back," says real estate agent and investor Ron Myers of Ron Buys Florida Homes. "It helps prevent surprises that can derail a deal later on."
When a home is sold “as is,” it usually means the buyer takes on any problems that come with it. Sellers still have to disclose known hazards—like lead paint in homes built before 1978, and in some states, asbestos or radon if they know about them, according to attorney James Roswold.
After you buy an “as-is” home—whether you’ve been informed of hazards or done your own testing—any repair or remediation costs are generally on you.
However, you can still ask for a price reduction before you close the deal.
"The 'as-is' seller may not budge, especially if they already priced the home lower to reflect the condition," explains Myers. "But either way, it’s worth the conversation—especially when it comes to health hazards."
If you decide to buy a home with potential asbestos, radon, or lead issues, know what you're walking into.
"Understand what it’ll cost to remediate, and lean on your agent or real estate attorney to make sure you’re protected," says Myers. "Sometimes, walking away is the smartest move. But if the numbers work out, you can still end up with a great deal."
