Your Top Real Estate Questions Answered
A DKG Top Agent Answers Your Real Estate Questions
Ever wanted to pick an experienced local Realtor’s brain? We’ve got you covered. DKG’s very own Broker/Owner Donna Kerr sits down with Emeka Mokunwye, an award-winning DKG agent licensed in DC and MD who's sold over 150 homes, to answer all of your burning questions like how to handle multiple offer situations and updates on purchasing during a pandemic. Read on!
2020 has set records for low inventory with rates since 2015 dropping by 50%. And, with more millennials entering the housing market, competition is high! Emeka says, “There’s just not enough homes for sale, and there’s just a ton of buyers.” The good news? Emeka points out savvy buyers can arm themselves with the right agent who can strategize with them to create a plan to win in this uber-competitive marketplace.
Is now even a good time to buy? Emeka says, “Definitely! With interest rates as low as they are, it’s an investment that could be worth more if you bought today.” For example, buying a $500,000 home now with a 10% down payment, your mortgage payments would sit at about $2,330. But that same home with just a 1% interest rate increase would shoot to a monthly payment of $2,730. “That’s almost $4,800 a year and over $144,000 throughout the loan!” Emeka exclaims. Other benefits include the indescribable pride of homeownership. “I’ve been customizing my home for months, and it’s been really fun,” says Donna. Emeka also counts building equity toward future wealth as a major benefit to long-term goals like paying off student loans and saving for a child’s education.
How much do you need to buy a home? “Down payments are important; they have a direct impact on your mortgage payment and how competitive you are in the market.” Emeka goes on to say, “But, people usually have a different understanding of what you need. As a first-time buyer, an FHA allows you to put down just 3%.” He suggests talking to your agent and preferred lender about loan options specific to your situation and location.
By now you’re ready to buy, but what’s the first step? “Find a good realtor,” Emeka stresses that an agent is your one-stop-shop for pulling comps, exploring loan products, and troubleshooting tricky real estate situations like preparing smart, solid offers that stand out to sellers.
Should I hold off since COVID cases are rising? With a convincing “No!” Emeka recommends following CDC guidelines, as it goes a long way in keeping everyone safe. “I have a family, my buyers have a family, the sellers have a family.” Sellers still need to sell and buyers need to purchase, so being cautious and using plain old common sense goes a long way in helping to stop the spread.
An experienced agent will navigate you through the exciting process of purchasing a home by providing expert advice on every topic from neighborhoods to interest rates. If you’re wanting to learn more about buying in the DC, MD, or VA region in 2021, start a no-pressure conversation, and learn more about Emeka and DKG by visiting our website.