The Truth About Down Payments, New Construction, and Market Timing

Host: Welcome to Market Matters with WVMLS, where we get real about real estate in the Willamette Valley. I’m Dave Pautsch of RE/MAX Integrity. Our local Willamette Valley Multiple Listing Service, or WVMLS, is a powerful but often misunderstood resource. It’s the centralized marketplace bringing buyers and sellers together since 1949.

Today, we’re continuing our series for buyers by busting three myths. Have you heard this old fable? You need a 20% down payment to buy a house. Not true. If you have the money to make a large down payment, it can reduce your monthly payment or help avoid mortgage insurance. But the ideal down payment depends on your personal situation, your financial goals, and your lending needs. There’s a wide range of loan options out there, including down payment assistance programs, so talk to a lender you trust to explore your options.

The second buyer myth involves waiting for prices to drop. Buying a home is an investment unlike any other because it also provides housing, which you’re going to need whether you own or not. If you’re renting, you’re probably paying a mortgage, just not your own. So, waiting for a broad price drop, which is rare, may actually cost you more in expenses and missed opportunities.

Finally, let’s bust the myth that new construction always costs more. In some Willamette Valley communities, we’ve actually seen new construction priced below comparable existing homes. New homes can feature lower maintenance costs, modern energy efficiencies, and builder incentives, making them surprisingly affordable. You will want to account for some additional expenses after the purchase, though, such as window treatments, landscaping, and fencing, which may not be included in the build price.

Thanks for joining us for Market Matters with WVMLS, where we get real about real estate in the Willamette Valley. I’m Dave Pautsch of RE/MAX Integrity. We’ll be back next week in the noon hour on Monday with more information on how WVMLS makes the market work for buyers.

Until then, learn more at wvmls.com.