Blog :: 11-2017

Welcome to our blog! Here you will find posts about can't miss properties, local events, and more! Here at Maple and Main Realty we pride ourselves on our knowledge of the Northampton area. Feel free to leave a comment, we would love to hear from you! If you have any questions, don't hesitate to contact us

Thinking About Buying vs. Renting?

The decision to buy a home is not one that is taken lightly by most. It is among the largest purchases (if not THE largest) one will make in their lifetime. Not everyone is in a position to buy vs rent. For this reason, as realtors in the Northampton area, we always suggest that a potential buyer start the process by speaking with their local bank or a mortgage broker to determine whether they can afford to buy and, if so, what purchase price is within their range.

To me, real estate has always made sense as a place to invest money. It seems less fickle than the stock market, and you have the added benefit of being able to live in and enjoy your home, while (hopefully) building equity. While the following piece from the Daily Hampshire Gazette uses the San Diego real estate market to make it's point about the benefits of home ownership - it is still a salient one. If you are in position to be able to buy a home vs. rent, it is an investment worth making. It's always a good idea to work with a knowledgeable buyer agent when purchasing a home. In this way, you are more likely to negotiate a fair price, and choose a home that has solid resale value. Read on for more about buying vs. renting.

Buy vs. rent: Can you afford to wait?

Buying a home is probably the biggest financial decision most of us will make. Dreamtime


By San Diego Tribune Staff
Thursday, November 09, 2017

Buying a home is probably the biggest financial decision most of us will make. While many variables factor into that decision, one key element is whether it makes more financial sense to buy a home rather than renting one.

According to industry experts, it depends on how long you plan on staying in a home.

“Given certain parameters, I can tell you that if you intend to be in a home for three to five years, it is almost always better to buy,” noted Matt Brady, a loan officer at Skyline Home Loans.

That’s because even though there is sizeable upfront expenditure when buying a home, you’ll be seeing the benefits after a few years.

Principal reduction is the amount paid on the cost of the home itself and not the interest. The idea is that by the time you plan on selling the home, you’ll have paid some of the cost of the house and will get more for it than you paid for, resulting in spending less over time than you would have renting a similar place.

Although home prices are high in San Diego — the median price is $535,000 for a home, $400,000 for a condo and $623,750 for new construction — area rent is also high and increasing. The median rent for a one-bedroom is currently $1,560; for a two-bedroom, it’s $2,020, according to the latest figures released by Apartment List, a national rental marketplace. That’s a 4.6 percent increase over last year.

Brady calculates the financial benefits of owning a home this way:

According to the National Association of Realtors, most people own a home for approximately nine years before selling. If a renter initially pays $2,200 for a two-bedroom home, after nine years, the rent will have increased to $3,000 at a 4 percent increase per year.

While the renter will have paid around $40,000 less in rent over those nine years than a buyer who purchased a $400,000 home, the owner’s home will have appreciated by about $200,000 in those nine years, Brady said. (And while no one can predict the future, most analysts assume that home prices will continue to rise and that San Diego will stay apace with the national average of a 4 percent annual increase).

The homeowner also will have paid down the mortgage by about $73,000 and had the added tax benefits of owning a home, which according to Brady would be about $40,000. In nine years, a buyer is ahead more than $225,000 from someone continuing to rent.

“The bottom line is unless you can rent the $400,000 house for $1,500, it makes much more sense to purchase it,” Brady said.

Buying a home is not for everyone. Renting is often less stressful and more flexible. But if you’re ready to settle into one place for a while, go over the numbers to see what works best for you.

___

 

 

 

Design Elements for Modern Homebuyers

As realtors, we are first-hand witnesses to the changing tides of desirable home design elements for home buyers. Seven years ago, when I became a realtor: granite and poured concrete were all the rage for kitchen counters, everyone seemed to be looking for an open concept living space, flat yards bested yards with any slope, and stainless appliances were a must-have. It's interesting to see preferences for certain types of layouts, paint colors, building materials, design elements and landscaping choices ebb and flow over time. I even notice that my personal preferences change, depending upon what I'm seeing more of. I've grown to love marble in kitchens and baths, but I can imagine that, over time, I might tire of their stark whiteness and required maintenance.

The following article from my favorite home and design blog, Apartment Therapy, talks about *modern* homebuyer preferences. While the Northampton area isn't overflowing with Sub Zero or Viking appliances, per se, I agree that the other elements of this article hold true.

 

What Modern Homebuyers Are Looking For (Hint: It's NOT Granite Countertops)

Brittney Morgan
Oct 25, 2017
 
(Image credit: Emma Fiala)
 
When looking at homes, we all have our own preferences for different home features—one person might want a huge, modern kitchen and another might not care about the kitchen as much as they care about having walk-in closets. But which features are most commonly used as selling points for homes?

Trulia pulled data from homes for sale on the site over the past year to see what design features are most popular for listers, pitting different features against each other. While some trends and design staples unsurprisingly won out—looking at you, subway tile and hardwood floors—others didn't necessarily come out on top, and some were just plain missing (seriously, no mention of granite countertops? I'm shocked!).

Here's how the most popular design features fared against each other.

Marble Countertops vs. Quartz Countertops

The Winner: Quartz countertops—they're more expensive up front, but marble countertops require more maintenance by comparison, which can add up.

Soaking Tubs vs. Claw Foot Tubs

The Winner: Soaking tubs. Claw foot tubs may seem more luxurious, but soaking tubs were far more popular according to the data.

Hardwood Floors vs. Carpet

The Winner: Hardwood floors. According to Trulia, real estate agents frequently see a strong preference for hardwood floors from clients, because they're easier to clean and long-lasting.

Basketweave Tile vs. Subway Tile

The Winner: Subway tile—although Trulia admits the numbers for each were so close, it's nearly a toss-up.

(Image credit: Hayley Kessner)

White Cabinets vs. Dark Cabinets

The Winner: White cabinets, and real estate agents point out that lighter, brighter cabinets can make a kitchen look bigger.

Sub-Zero Appliances vs. Viking Appliances

The Winner: Sub-Zero appliances—although, like the tile style toss-up, Viking appliances were just barely behind.

Bay Windows vs. Floor-to-Ceiling Windows

The Winner: Bay windows. Another close call, but bay windows were still the more popular selling point.

Electric Stoves vs. Gas Stoves

The Winner: Gas stoves—while they're more expensive initially, they save money in the long run as gas in general is less expensive than electricity. Gas stoves were far more popular than electric stoves among listings.