3 Questions You Need To Ask Before Buying A Home
If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.
Ask yourself the following three questions to help determine if now is a good time for you to buy in today’s market.
1. Why am I buying a home in the first place?
This is truly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.
For example, a study by realtor.com found that “73% said buying in a good school district was “important” in their search.”
This report supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. The actual reasons are:
- A good place to raise children and provide them with a good education
- A place where you and your family feel safe
- More space for you and your family
- Control of that space
What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.
2. Where are home values headed?
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in February (the latest data available) was $249,500. This is up 3.6% from last year. The increase also marks the 84th consecutive month with year-over-year gains.
Looking at home prices year over year, CoreLogic is forecasting an increase of 4.6%. In other words, a home that costs you $250,000 today will cost you an additional $11,500 if you wait until next year to buy it.
What does that mean to you?
Simply put, with prices increasing, it may cost you more if you wait until next year to buy. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy.
3. Where are mortgage interest rates headed?
A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.
Freddie Mac, Fannie Mae, the Mortgage Bankers Association and NAR have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:
Bottom Line
Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.
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I believe that asking myself why I am buying a home for sale is a rather important question that I am now able to answer. Thanks for clarifying that I should know where home values are headed so I can save money while buying a home. As long as the mortgage interests are favorable to my condition, I know that I should have no problems with buying a home from a real estate company. https://karlmillerteam.com/lynchburg-homes-for-sale/
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It’s great that this article explains how it’s important to consider why you’re purchasing a home, such as finances or if you need more space. Knowing this would be useful so you can figure out your requirements. If you know your requirements, it would make it easier as you go online to check out property for sale so you can find one that fits your needs.
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I appreciate your tips for buying a home. I like how you said that buying one for our kids is a good reason to buy one. Now that we’re planning on having our second kid, I think it’s smart to have more space. http://www.mollyeovino.com/Pages/Naples.aspx
I think I’ve asked my brother why he wants to buy a home for sale in the first place so I’m trying to help him find one. Thanks for adding that before I contact any real estate companies, I should know where the home values are headed so he can afford to live in one before he lands on his next job to the state he wants to live in. This way, he’ll also be able to save money if the mortgage rates are headed to prices in his favor. https://www.talk-to-tanya.com/
I believe my brother is buying a home in the first place because he wants to settle down. Thanks for adding that he should look into looking at where home values are headed before he contacts a real estate company. If the mortgage interests are headed in his favor, I’ll encourage him to buy one. https://www.debbiegibbs.com/Buyers/default.aspx
My husband and I are looking to buy a house, so I wanted some tips on choosing the perfect location and house. I didn’t know 73% of homebuyers said they made sure to look at surrounding school districts when deciding where to live. My husband and I aren’t planning on having children for a while, but it’s always nice to think far into the future when our kids start going to school and how convenient it has to be for them; I’ll keep that in mind as I look for houses on sale, thanks to this post! http://www.cannon1.com/featured-searches/single-family/
I think I want to take control of my own space. Maybe I should buy a real estate property soon because the home values are headed to my favor. Thanks for mentioning that I should look into mortgage rates are headed so that I can contact a real estate company in order to buy a house that I’ll live in. http://www.bhhslynchrealty.com/pages/buying
I found it interesting when you talked about thinking if a specific place is good for raising children and for their education before buying a home there. My husband and I are trying to find a place where we can raise our three daughters and that is an important factor in our lives. We will make sure to talk to a specialist to help us with that choice.
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Thanks for mentioning that having adequate space to raise kids and a good place for education is one of the reasons for choosing a home. My wife and I are thinking of moving because we’re contemplating relocating to an area that has better schools for our children. I think it’s a good investment to hire a reputable real estate professional to help us find the best home and area if we decide to move.
Great Post
My husband and I want to buy our first home next summer. I appreciate you mentioning that the best reasons to buy a home include more space for your family and a place where you feel safe. We will keep this in mind while we search for the perfect home to move into.
I’m glad you mentioned that a common reason to buy a home is to find a good place to raise kids. My sister and her husband want to find a home with a nice view for them and their three kids to enjoy. I’ll suggest they look for a home in a gated community to make sure it’ll be safe for their family!