Blog

Why Do You Want to Buy a Home?


If you are in the market to buy a home of your own, you need to ask yourself one question: WHY?

It seems like a simple enough question yet it is not. Experts are predicting that, in many markets, prices will continue to soften (see our blog from yesterday). That has caused many buyers to stay on the fence of indecision hoping to buy at the optimum time. If the reason you are buying is to do a quick 'flip' of the property to make money, waiting most definitely makes sense.

What if the reason you are moving isn't about finances however. Does it still make sense to delay? That depends on why you are buying. What if your purchase is more about improving the quality of life for you and your family? Or moving into a school district where your child's talents will be maximized? Or being closer to friends and family? There is a cost to delaying any of these decisions.

We realize everyone wants to make a sound financial decision no matter the actual reason for moving. Delaying in a hope to 'time' the market might not make sense however. Forbes.com addressed this issue in an article by John E. Girouard last week:

“Trying to time the housing bottom is as much folly as trying to time stocks or any other investment vehicle. In fact, it’s greater folly because if housing prices do fall further, it’s likely to be because mortgage rates are rising, which would mean that over the long term that slightly lower price you may have paid could end up costing more in carrying costs than you saved.”

He went on to say:

“My answer to those who ask whether now’s the time to buy a house is that the American Dream is and always was alive and well. It has nothing to do with the direction of housing prices but everything to do with your financial situation, income stability, ability to shoulder the costs, and if the home you have your eye on is your version of the American Dream—a home you love that you hope to live in for an extended period.”

Bottom Line

Don't make buying a home solely a financial decision. Is the real reason you want your own home more important than money? Only you know the answer.

Share

About The KCM Crew

We at The KCM Crew are pursuing our mission to provide real estate professionals with the tools and information they need to guarantee success in any real estate market. With strong visual aids and expert analysis, we empower real estate professionals across the country to stand out as experts in their marketplace. Take a 14-Day Free Trial of our monthly membership to see how we can help you!

7 Responses to “Why Do You Want to Buy a Home?”

  1. Ted October 19, 2011 at 7:57 am # Reply

    Very good article however the real estate market will not bounce back until current home owners get some relief. The mortgage compaines need to allow every homeowner that is current on there mortgage to pay for there own appraisal and then the bank recast the home loan for current market value. Many homeowners would like to move up to larger homes or even job transfer to another state but can not. One expamle a friend of mine bought a home in 2007 for 180,000 and several other homes in his development were selling for 160,000 he had a very good job offer in another state and had to turn it down because he can not sell his current home for what he paid for it in 2007. If the banks and mortgage companies created this mess and the big corporations can get a bail out then people that have done right by doing what they have to do to stay current on there mortgage should get a break as well. in the example above my friend's payment every month included taxes, insurance etc. is 1200 a month the home that sold for 160,000 is only 700 a month. I know what I would do with an extra 500 a month. This is see and hear everyday including myself, its time to do the right things for the right reasons.

  2. Art A. October 27, 2011 at 5:12 pm # Reply

    I takes a long time and experience to become a "real" real estate expert. Just look how many wrong calls were made on real estate market by the National Association of Realtors head

  3. fuck me April 4, 2013 at 7:45 am # Reply

    Very good article however the real estate market will not bounce back until current home owners get some relief. The mortgage compaines need to allow every homeowner that is current on there mortgage to pay for there own appraisal and then the bank recast the home loan for current market value. Many homeowners would like to move up to larger homes or even job transfer to another state but can not. One expamle a friend of mine bought a home in 2007 for 180,000 and several other homes in his development were selling for 160,000 he had a very good job offer in another state and had to turn it down because he can not sell his current home for what he paid for it in 2007. If the banks and mortgage companies created this mess and the big corporations can get a bail out then people that have done right by doing what they have to do to stay current on there mortgage should get a break as well. in the example above my friend's payment every month included taxes, insurance etc. is 1200 a month the home that sold for 160,000 is only 700 a month. I know what I would do with an extra 500 a month. This is see and hear everyday including myself, its time to do the right things for the right reasons.

Trackbacks/Pingbacks

  1. Why Do You Want to Buy a Home? | Living Lake Country in Wisconsin -Discover Waukesha County – Lisa Bear REMAX Real Estate - October 19, 2011

    [...] Why Do You Want to Buy a Home?. Share this:EmailPrintFacebookLinkedInStumbleUponTwitterLike this:LikeBe the first to like this post. [...]

  2. Why Do People Buy Homes? - October 20, 2011

    [...] read Why Do You Want to Buy a Home? and Why Do People Actually Buy a [...]

  3. The True Cost of Renting - October 21, 2011

    [...] Our friends at Keeping Current Matters expressed this best in a recent blog post called “Why Do You Want to Buy a Home?“: “What if the reason you are moving isn’t about finances? Does it still make sense [...]

  4. Why Do You Want to Buy a Home? « King David New York Real Estate - October 26, 2011

    [...] Why Do You Want to Buy a Home?. [...]

Leave a Reply