Three Important Things to Consider Before Buying a Home

Real Estate Agent with 44Realty Corporation CalBRE 01048899

Here's what you should consider:

1."Why should I buy now, if it’s possible that prices will continue to fall, ?"

For home-owners, price is the major concern when they decide to sell a home.  As a home-buyer, the cost should be your primary concern. That means you have to take into account what your mortgage's monthly payment will be, considering not only the price paid for the home but also the interest rate of your home loan.

Timing the market is a mistake.  Waiting for prices to hit bottom while mortgage interest rates are increasing can wind up costing more over the life of the mortgage.

Most of the housing insiders; Fannie Mae, Freddie Mac, the NATIONAL ASSOCIATION OF REALTORS®, PMI, and the Mortgage Bankers Association are all projecting interest rates will rise over the next several quarters.

Before you start looking at homes is the best time for you meet with your mortgage professional to help you determine what an interest rate increase will cost you based on the expected size of your loan. That will help you make a decision.


2. "When will I begin to see appreciation if I buy now?"

Appreciation varies by market area, so it’s vitally important to look closely at local pricing trends.

Nationally, there are indications that values will begin to rise this year. NAR projects home prices to grow slightly (0.5 percent) in 2011.

Macro Markets LLC, a financial and technology company, recently asked more than 100 housing experts to project housing prices through 2015.

The results—released in the company’s 2010 Home Price Expectation Survey—show that experts think prices will start increasing in the second half of 2011, reaching a cumulative appreciation of more than 10 percent between now and 2015

3. "Does buying really make better sense than renting?"

Forget the finances for a minute. Why are you considering buying a home?

The Fannie Mae National Housing Survey shows that four of the major reasons people buy a house have nothing at all to do with money. They want:

a. a place to raise their children,
b. a place they will feel safe,
c. to have plenty of living area, and
d. to have complete control over the space.

What non-financial benefits will your family gain from owning a home?  Your answers to that question should be the reason you decide to purchase or not.

The bottom line is that the cost of a home will probably remain relatively unchanged even if prices continue to depreciate.

Don’t allow money to be the only factor in making the decision that’s right for you.

Posted by

 Richard and Janine Kirchnavy, 44 Realty Corp, 909-945-3662

It would be our pleasure to assist you in your next real estate transaction!


Janine Kirchnavy

California Real Estate Broker

CalBRE # 01048899


(909) 945-3662 Direct Line  


44Realty Logo, Richard Kirchnavy, Janine Kirchnavy

1425 W Foothill Blvd #237 Upland CA 91786



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Jeff Jensen
The Federal Savings Bank/Lending in 50 states - Greenwich, CT

we use a why buy now comparison that takes into account all the elements you have mentioned.  It has turned some browsers into buyers.

Jan 05, 2012 09:06 AM #1
Diane Grady
Endless Summer Realty - Saint Augustine, FL

The best time to buy depends on why you are buying. Timing, rates and how long you are going to hold on to the home are huge factors when it comes to prices and when you buy. If you need to be somewhere, renting for an extended period of time and moving more than once could end up costing you more!


Jan 05, 2012 09:21 AM #2
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Great information for all home buyers to consider they are the only ones who can decide if they should own or rent.

Jan 05, 2012 09:22 AM #3
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