Friday, September 29, 2023 / by Ryan De La Uz
Home Buying in 2018: What You Should Know
The New Jersey real estate market changes frequently, and so do the home buying rules. You may have already bought a home in the past, but even if this was three months back, the conditions may be significantly different in the market right now.
Prepare yourself by going through the current rules of buying a home in 2018. Tax codes are new, competition is tougher and acting fast is essential for securing that amazing deal. Keep our advice in mind as you initiate the home buying process in 2018.
Understand how you can be affected by the new tax codes
Tax codes have changed this year, and as per the general perspective, it seems that homeownership is now further out of reach. As an example, you could deduct interest up to $1,000,000 on your mortgage loan until last year. Now this is down to $750,000. Considering that the median home prices are around $270,000, the change is only expected to affect 1.3% of new homes. That change is mostly in pricier or more luxurious neighborhoods. This means that you still have a good enough chance of becoming a homeowner this year. However, doing your homework, properly planning out your finances and working with a skilled realtor are essential.
Get ready for the competition
The housing market has hit a record low throughout the country, and not just in New Jersey. The competition out there is tough, and you’ll see plenty of serious buyers all around. Gain an edge over them in any way that you can, and more importantly, prepare yourself against the all-cash buyers who manage to attract sellers the most.
All-cash buyers are growing in the industry these days. Previously, their offers used to be a bit lower, but now they are willing to buy at full prices and waive off appraisals and other contingencies. You can gain an edge over them by bringing in a personal touch into the sale or meeting the seller’s goal. For instance, if they want to close by so and so date, ensure that you can finalize the deal within that particular time period.
Evaluate online offers wisely
Shopping for homes from your desktop, laptop or phone is convenient, but don’t believe everything that is stated. Scams do exist in the online real estate market, and an offer that seems too appealing may actually be an attempt to steal your identity or money. If any offer sounds too urgent, asks for your personal information or is made by a homeowner or seller who is unavailable, you should treat it as a red flag.
Also be careful of the emails that you receive. Potential hackers may pretend to be your real estate agent and try to trick you.
What else should you know about buying a home in 2018? Schedule a session with us for further details.