As a renter, you face the same question on some sort of recurring basis (depending on your lease tenure): keep renting for another year or purchase a home? Your answer obviously depends on your current situation and future plans, but there are a number of benefits to homeownership every renter needs to consider. Here are a few things you should think about before you settle on renting for another year.

Rents Are Rising

Rent increasing each year isn’t new. Looking back at Census data confirms rental prices have gone up consistently for decades. If you’re a renter, you’re faced with payments that continue to climb each year. It’s important to keep this in mind when the time comes for you to sign a new lease, as your monthly rental payment may increase substantially when you do.

Building Equity

One of the most significant advantages of buying a home is the wealth you build through equity. This year alone, homeowners gained a substantial amount of equity, which, in turn, grew their net worth. As a renter, you miss out on this wealth-building tool that can be used to fund your retirement, buy a bigger home, downsize, or even achieve personal goals like paying for an education or starting a new business.

Feeling Like Home

This is a big decision-making point if you want to be able to paint, renovate, and make home upgrades. In many cases, your property owner determines these selections and prefers you don’t alter them as a renter. As a homeowner, you have the freedom to decorate and personalize your home to truly make it your own.

Flexibility

You may choose to rent because you feel it provides greater flexibility if you need to move for any reason. While it’s true that selling a home may take more time than finding a new rental, it’s important to note how quickly houses are selling in today’s market. According to the National Association of Realtors (NAR), the average home is only on the market for 17 days. That means you may have more flexibility than you think if you need to relocate as a homeowner.

Lately, more and more couples want to experience what it’s like to live together prior to getting married. For many it makes sense to jump right in, stop renting and buy a house-but does it really? There are a few things unmarried couples need to consider before making one of the most important financial decisions of their lives.

Can’t we do both?

The average cost of a wedding in the U.S. is around $29,000. That is a substantial amount of money. Buying a house is also a huge expense….one that can drain finances. It is crucial for you and your partner to decide which is more important right now. If buying a house before getting married is your goal, there are still many things to consider.

How’s your credit?

If you buy a house before marriage, your finances will more than likely be examined individually. In the best-case scenario, you and your partner both have excellent credit and can secure a loan. But if one of you has poor credit, it may be better to buy a house after marriage to increase the likelihood of obtaining a loan. Once you’re married, the individual with better credit has the option of applying for the loan on his or her own.

Still paying on student loans?

One of the biggest obstacles for young couples looking to purchase their first home is outstanding student loan debt. The amount you owe affects your credit score which, in turn, will affect the loan amount you get approved for and the interest rates that follow. Depending on your situation, it may be in your best interest to focus on paying off student loan debts – and your wedding – prior to purchasing a home.

What are your state laws?

If owning a home together is a high priority in your relationship, you’ll want to research state laws. Some states do not allow couples to share legal ownership of a home if not legally wed.

Many components go into the decision of buying a house before you say “I do!”. Love and commitment aside, there are legal and financial concerns that should be considered to ensure that you make the best choice together.

Let’s be clear…it’s a great time to sell your home. Inventory is low, resulting in higher asking prices…and mortgage rates are historically low allowing buyers more purchasing power. That doesn’t mean that all homes sell immediately or for top dollar. Despite what you may read or hear, buyers are still picky…within reason…but rightfully so. By concentrating on just a few key things it’s possible to minimize the time your property spends sitting on the market. From improving curb appeal to removing excess clutter, here are several things that can help you to improve property values, attract potential buyers, and ensure a profitable sale.

Curb Appeal

Curb appeal is never a concern that should be taken lightly. Your home’s exterior appearance, landscaping and general exterior appearance all play a key role in ensuring that potential buyers are more likely to form a positive first impression. From listing photos to the first glimpse that buyers will have when they pull up to the curb, a few improvements can make a major difference.

Interior Upgrades

Home improvements and renovations can boost property value and help to ensure a quicker, less stressful sale. While a few upgrades can be well worth the effort and expense, it’s wise to stay focused and avoid going overboard in your efforts. A few small projects are often easier to manage and of greater benefit than larger efforts that have the potential to get out of hand.

A Good Agent

An experienced real estate agent is not a resource you will want to be without. Working with a professional who has a better understanding of the market as well as the tools, experience and skills needed to manage the sales process can provide a wide range of advantages. Homeowners who elect to go it alone could soon find themselves faced with an uphill battle.

No Clutter

Removing excess clutter and making an effort to depersonalize your home’s interior can help to ensure that buyers are provided with the blank canvas they need in order to better visualize the full potential of the space. Having less clutter within the home makes it much easier to prepare for property tours and open house events. Dealing with clutter now also means having less to pack up when it comes time to move to your new home.

If you are a first time homebuyer or just thinking about getting back into the market after a brief hiatus, your timing couldn’t be better! Yes, it’s a big step that requires some upfront costs, but the long-term benefits more than make up for itin the end. Aside from having a place to call your own and enjoying the several investment and tax perks that home ownership allows, it may actually be cheaper now than renting.

The Rental Affordability Report for 2021 that was produced by the nation’s premier property database, ATTOM Data Solutions, showed that owning a median-priced three-bedroom home was more affordable than renting a three-bedroom property in over 60% of the 915 U.S. counties analyzed for the report. That’s pretty shocking when you consider that, over the past year, median home prices have increased more than the average cost of rent in 83% of those counties, and have risen more than the wages in about two-thirds of the nation.

Home ownership has become more affordable in many housing markets thanks to noticeably declining interest rates (sometimes dropping below 3%) and the already high cost of renting. Although in many highly populated cities of over 1 million people, this may not be the case since the demand for space is far greater and sometimes just unattainable.

In the words of ATTOM Chief Product Officer Todd Teta, “The housing market boom of the past decade keeps pushing home values to a new record. Yet home ownership still remains the more affordable option for average workers in a majority of the country because it makes up a smaller portion of their pay.”

“The coming year is totally uncertain, amid so many questions connected to the Coronavirus pandemic and the broader economy. But right now, owning a home still appears to be a financially-sound choice for those who can afford it.”

After all, what better way to ring in the new year than with a space to call your own?

While it can be overlooked often times, a homeowner’s equity helps build long-term wealth over time. So, as home values climb, your equity does too. That’s exactly what’s happening today. There aren’t enough homes on the market to meet buyer demand, so bidding wars and multiple offers are driving prices up. That’s because people are willing to pay more to buy a home. Right now, this low supply and high demand are giving current homeowners a significant equity boost.

Dr. Frank Nothaft, Chief Economist at CoreLogic, explains: “Home price growth is the principal driver of home equity creation. The CoreLogic Home Price Index reported home prices were up 17.7% for the past 12 months ending September, spurring the record gains in home equity wealth.” According to latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has grown by $56,700 over the last 12 months.

Curious how your state stacks up? Check out the map below to find out the average equity gain for your area.

If you’re already a homeowner, equity not only builds your wealth, it also opens doors for you to achieve your goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have changed and you’re looking for something new.

If you’re thinking about becoming a homeowner, understanding the importance of equity can help you realize why homeownership is a worthwhile goal. It builds your wealth and gives you peace of mind that your investment is a wise one, not just from a lifestyle perspective, but from a financial one too.

In the current sellers’ market, many homeowners wonder what, if anything, needs to be remodeled before they list their house. That’s where a trusted real estate professional comes in. They can help you think through today’s market conditions and how they impact what you should – and shouldn’t – renovate before selling. Here are some considerations a professional will guide you through:

Buyers may be willing to take on projects

A more balanced market typically sees a 6-month supply of homes for sale. Above that, and we’re in a buyers’ market. Below that, and we’re in a sellers’ market. According to a recent report by the National Association of Realtors (NAR), our current supply of homes for sale, while rising, still remains solidly in sellers’ market territory.

So, what’s that mean for you? If you’re a seller trying to decide whether or not to renovate, this is especially important because it’s indicative of buyer behavior. When there aren’t enough homes for sale, buyers may be more willing to purchase a home that doesn’t meet all their needs and renovate it themselves later.

Not all renovation projects are equal

You don’t want to spend time and money on a project that isn’t worth the cost or is too niche design-wise for some homebuyers. The last thing you as a homeowner want to do is center your home design around a passing fad – even worse, one thats design quality won’t last a good while.

Before making any decisions, talk to your real estate advisor. They have insight into what other sellers are doing before listing their homes and how buyers are reacting to those upgrades. Don’t spend the time and money to be trendy – if your buyer wants to upgrade to the newest fad later, they can.

Spotlight your already completed upgrades

If you have already completed some renovations on your house, you’re not alone. The pandemic kept people at home last year, and during that time, many homeowners completed some home improvement projects.

Let your real estate professional know if you fall in this category. They can highlight any recent upgrades you’ve made in your house’s listing.

When it comes to renovations, your return-on-investment should be top of mind. Talk with your local real estate professional to find out what projects you should prioritize before you sell and how to highlight your upgrades to maximize your house’s potential.

The median home price for single-family properties and condos has increased to $294,488. And since the pandemic hit in March of 2020, there’s been significant property appreciation across the board, with home values increasing, on average, by more than $41,000, according to the latest report from Radian.

A lack of inventory is helping to drive prices up, as the number of homes listed in the U.S. for the month were at a record low for any ninth month over the last 13 years.

Other findings:

– All regions reported faster appreciation than last month
– The strongest performing regions are the South and West, with growth occurring for three consecutive months
– The Midwest, however, had the highest month-over-month increase in appreciation rate (+242 basis points)
– September had the fastest, annualized one-month appreciation rate since 2020
– Among the 20-largest metropolitan areas of the U.S, more than half (13) posted faster annual price appreciation in September compared to last month

The takeaway:

“Given the rapid rise in home prices over a relatively short period of time, the Radian HPI is constantly mining the data to find signs of a shift in current housing strength—and so far, it seems to be heading in one direction,” said Steve Gaenzler, SVP of Data and Analytics, in a statement. “While there are some indications that affordability may be starting to place strain on certain homebuyers, the limited supply is a strong support for home price growth.”

Gaenzler added that, “ultimately while bidding wars may be reducing in frequency, sellers are still receiving above list price offers in many situations.”

When it comes to buying a house, you’re looking for the perfect place to call home. The problem is, in today’s market there just aren’t that many homes available to purchase. With inventory hovering near record lows and sky-high buyer demand, a multi-offer scenario is the new normal. Here are some things to keep in mind when you’re ready to make an offer.

Know Your Budget

Having a complete understanding of your budget and how much house you can afford is essential. That’s why you should connect with a lender to get pre-approved for a loan early in the homebuying process. Taking this step shows sellers you’re a serious, qualified buyer and can give you a competitive edge in a bidding war.

Move Quickly

Today’s market is dynamic and fast-paced. A skilled agent will do everything they can to help you stay on top of every possible opportunity. And, as soon as you find the right home for your needs, that agent will help you draft and submit your best offer as quickly as possible.

Utilize A Realtor

While homebuying may seem like a whirlwind process to you, local real estate agents do this every day, and they know what works. That expertise can be used to give you a significant leg up on your competition. An agent can help you consider what levers you can pull to help your offer stand out.

Make Your Best Offer

We all love a good deal. In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In today’s market, that’s often not the case. In such a competitive market, emotions and prices can run high. Use an agent as your trusted advisor to make a strong, but fair offer based on market value, recent sales, and demand.

Be Flexible

Be prepared to amend your offer to include flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember, there are certain contingencies you don’t want to forego.