MINT HILL, NC – This year, 2021, promises to be a seller’s market with 27% of people planning to buy a new home and only about 14% of homeowners planning to sell. It has been a seller’s market for quite some time now and this puts buyers into a unique position.
While buyers can certainly find a home, they will likely pay a premium and may have to compete for the home they truly want. Once you buy a home, you might be wondering if you can still build equity since you purchased during a seller’s market.
Can you build equity in your home if you buy during a seller’s market?
The short answer is yes, but it’s more complicated than just a simple yes. If you buy a home during a seller’s market, you can build equity, if you follow the right plan. Let’s look at a few ways you can build equity if you buy Mint Hill real estate.
Don’t Move
Even when it’s not a seller’s market, if you want to build equity, you need to stay put. However, when you buy during a seller’s market, you want to make sure you don’t have any plans to move in the 5-7 years. It will take longer to build equity compared to buying during a balanced market or a buyer’s market.
If you do end up needing to move, consider renting the property to continue to build equity, if possible. By renting, you can build equity in the home instead of selling it and barely breaking even.
Pay Down Your Mortgage Faster
Did you know, if you make an extra mortgage payment each year, you’ll pay off your mortgage much faster? If you can, double up your payments or at least pay extra every single month. Some homeowners will use their entire tax return to pay down their mortgage faster.
When you pay down your mortgage, you build equity faster. Not only will you owe less on the principal amount, but you will also pay less in interest.
Make Smart Home Improvements
If you buy one of the homes for sale in Mint Hill, NC that needs a little bit of work, you have an opportunity to build equity. The right home improvements can boost your home’s value giving you equity in your home, even if you purchased it during a seller’s market.
Put More Money Down
The fastest way to build equity in a home, even when purchased during a seller’s market, is to put more money down. A bigger down payment allows you to start with equity in the home. You can also avoid paying private mortgage insurance by putting at least 20% down.
No matter the market you purchase your home during, you can build equity. It may take longer when you buy during a seller’s market, but you can use these tips to speed up the process and build equity in your new home in 2021.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger (704) 650-5707 | annagrangerhomes@gmail.com | www.1stchoicepropertiesinc.com
