The average home buyers will visit 10 homes over 10 weeks' time before they find “the one”—that special place that inspires an offer. But that number can vary widely: Some may fall in love with the first place they see, while others feel compelled to check out several dozen.
The number of showings needed can vary widely, depending on market conditions, price, and home appeal. On average, a well-priced home in a competitive market may see offers after 10-20 showings.
The best practice is to start house hunting about five or six months before your lease is due for renewal. This will give you time to get pre-approved for a mortgage and look at potential homes.
The Rule: 3 / The value of the house should not be more than 3 times your annual earnings. 20 / The Home Loan tenure should be less than 20 years. 30 / The sum of all EMIs that you pay must be less than 30% of your monthly income.
It goes like this: 40% of income should go towards necessities (such as rent/mortgage, utilities, and groceries) 30% should go towards discretionary spending (such as dining out, entertainment, and shopping) - Hubble Money App is just for this. 20% should go towards savings or paying off debt.
Ever heard of the 30% rule? It's the idea that you should budget a minimum of 30% of your gross monthly income (i.e., your before-tax income) for housing costs, and it's practically a personal finance gospel. Rent calculators often use the 30% rule as a default assumption to determine how much house you can afford.
Southern California, and the nation as a whole, is experiencing record low inventory which means finding the perfect house can take some time. According to data from the National Association of Home Builders, two-thirds of homebuyers searched for more than 3 months before going under contract on a home.
It found that Wednesday is when most interested buyers are viewing homes and sending leads to estate agents, with the hour of 9pm being most popular.
Most first-time homebuyers make a purchase when they are 35. Buying a house at a young age can mean building equity young and getting a home paid off sooner. Purchasing a house in your 20s or earlier can also mean you feel trapped, unable to move at a moment's notice.
“Home sellers typically choose convenience over a higher-priced offer because it could mean fewer headaches during the process.”
You need to determine how much you can afford to spend on a house that you may have fallen in love with or is in an area where you want to live — or both! If this is The One, then you will want to make a house offer that is at least near the asking price — perhaps within 5 percent to 10 percent.
“If a buyer knows what's out there and what they want, then they should make the offer right away,” says Chris West, a real estate broker and owner of Gustave White Sotheby's International Realty in Newport, RI. “You never know who else is interested, and you could miss out.”
While a 20 percent down payment is the traditional standard for purchasing a home, it is not mandatory and there are loan options that have much lower minimum requirements. Private mortgage insurance will likely be required with a down payment of less than 20 percent, which will add to your monthly payment.
About 10 weeks out from when you plan to move in is the time to officially start looking at listings with your buyer's agent. The difficult part here to judge is how long it will take to find a home. Depending on the market and its timing, and where you are looking, the amount of homes available will vary.
According to a study by Zillow, Thursday is the most popular day of the week for sellers to cut their homes' prices. Reducing the price of a house on Thursday gives realtors enough time to notice the price change and inform their clients, just in time for weekend showings and open houses.
Sunday is a great day to tour a home because typically it is toward the end of the offer collecting period for the seller and the buyer or buyer's agent will have an idea of how that new home on the market is performing.
The Typical Home Buyer 'Views' Eight Properties
First, let's talk about what the norm is based on some data from the National Association of Realtors.
It is recommended that you view at least three to six houses before you make a purchase. This allows you to compare different types of homes and decide which one fits your needs and budget the best. Advice from a real estate agent can also be beneficial in helping you make your decision.
Most buyers find it helpful to have a professional real estate agent on their side to guide them through the process. In 2024, 85% of buyers used an agent during some part of their home search, according to the Zillow Group Consumer Housing Trends Report 2024.
You must make $5,000 per month to afford a $1,500 monthly rent.
Mortgage to income ratio: Common rules
The 28% mortgage rule states that you should spend 28% or less of your monthly gross income on your mortgage payment (including principal, interest, taxes and insurance). To gauge how much you can afford using this rule, multiply your monthly gross income by 28%.
According to the 28/36 rule, you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts. Housing costs can include: Your monthly mortgage payment.