By Glen D. Smith, CFP®, CRPC®
October is upon us and the real estate selling season is coming to a close. Sellers are striving to offload their properties before the winter lull and opportunist buyers are out to catch a real deal before Christmas. Click here for Part 1.
With the clock counting-down and fewer people perusing the market, buyers certainly have more leverage over prices. RealtyTrac reviewed over 32 million home and condo sales over the past 15 years and found that homes purchased in October came at a 2.6% discount of the current fair market value.
Crunching the numbers
“Can I afford it?” is the question I hear when clients talk to me about buying a new home. When it comes to financing, there are a variety of ways to pay for your dream home, but they shouldn’t be reviewed in isolation.
I always ask my clients to talk to me before they commit to a financial plan. It’s important to conduct a thorough review of their whole portfolio and re-confirm their future life goals, including their retirement plans, before committing to that new home. It can be a balancing act; however, my shared priority is getting my clients into their forever home, while not affecting their retirement plans.
Irrespective of how you finance your new home, make sure to talk with your financial advisor before putting pen to paper. You don’t want your ‘forever home’ to be a ‘forever worry’ on your mind.
Glen D. Smith & Associates, Raymond James is located at 1029 Long Prairie Road, Suite C, Flower Mound, TX 75022. (469) 212-8072.
Glen D. Smith & Associates is not a registered broker/dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Any opinions are those of Glen D. Smith and not necessarily those of RJFS or Raymond James.
This case study is for illustrative purposes only. Individual cases will vary. Prior to making any investment decision, you should consult with your financial advisor about your individual situation.
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