When talking about buying a house, have you ever said:
"I'll know when I see the right place."
"I want to see what I can find on my own."
"I'll only buy if I can get a fantastic deal."
"I'm waiting for interest rates to go down."
If you have then you are not ready to buy a house.
There are all types of houses for sale in more areas than we can count so it should be easy to ‘find the right place’ especially with your real estate agent doing the preliminary search for you. Home prices may be on a slight rise, but they are still lower than they were at the real estate peak some years back so if you are ‘waiting for the right price’ or ‘to get that fantastic deal’ or for ‘interest rates to go down’ that time is now.
It’s understandable that there would be some apprehension, owning a home is a huge responsibility and the market has been so volatile for quite some time that you can’t be sure you’re getting your money’s worth or making the right decision.
So you should take some time to examine the risk. Just like the stock market or any other financial investment, nothing is a sure thing. But as any market ebbs and flows, there is historical evidence that in time you will either break even or make a little money on your investment. If you do the following four things:
1. Be realistic. Make sure the home meets your basic needs first, to provide shelter, then look for the special things you want in a home.
2. Buy within your means. Make sure you can afford the mortgage payment, don’t bank on money you may or may not make in the future.
3. Long term plans. It takes approximately four years just to get your closing costs back in equity so make sure the home you buy is one you will want to live in for quite a few years.
4. Maintenance upkeep. If for some reason you have to sell in a hurry, homes that require little or no repairs sell faster and will bring a better price.
Currently, it’s a buyer’s market, high inventory in many areas, prices are lower and in some cases lower than what the original owner paid for the house and of course lower interest rates makes for the risk of buying a house now a lower risk.
Let’s not forget the incentives floating around out there that are in place to help boost the real estate market. Qualifies buyers can buy a federally subsidized or guaranteed loan for one, as well as income tax and capital gain benefits. Also, you can get discounts on auto insurance through the same company as your home owner’s insurance – as home owners are seen as more responsible than renters.
Now with that said, if you are truly ready to buy a house, make sure you have your finances in order, a substantial down payment, get preapproved for a loan, work with a really good agent to help you find the right home be an active part of the home search, find the right now, make an offer and go from there.
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