Is Buying a Home Right Now a Mistake?
Ah, the big question. Let’s get it out in the open, shall we? You are probably sitting at your computer reading this on one tab and searching homes on your phone. Am I right?
Once you get the itch to move, it’s hard not to scratch. You start looking at pretty homes, getting excited about the thought of something new, and go down the rabbit hole of Pinterest decorating tips. (I’ve been there, I know!)
But should you buy? Here’s how you know if this is the right time for you…
1. Your Financials
Sometimes rent is higher than a mortgage payment. You won’t know for sure until you explore your options. Talk to a lender and run through what you could qualify for, how much your monthly payment would be, how much you need for your down payment, etc. If it makes financial sense for you to buy rather than rent, it might be worth exploring! Remember, when you pay rent you’re paying someone else’s mortgage. Why not pay your own?
Buyer Tip: Watch the interest rates. These can effect your “buying power”. If the rates are low, you might be able to grab more bang for your buck!
2. The Lifestyle
Buying a house is much like creating a lifestyle. Do you want downtown, urban living? Lots of land in the country? Or suburban? Where do you see the next chapter of your life? If your budget allows you to buy a home and create the lifestyle you’re looking for, then yes now might be the right time to explore buying a home!
3. The House
What does your house look like? Paint that picture in the form of 3 lists.
List #1: What are your non-negotiable items you MUST have in a new home?
List #2: What are your “would like to have but not a deal breaker” items?
List #3: What do you NOT want in a new home?
Is this home within your budget and in the area you want to be in? If so, then YES now might be the right time for you to buy a home.
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4. The Market
The market is a big factor in determining if now is the right time for you to buy a home. Is it a buyer or sellers market? Will you be competing with other buyers and overpaying for a home? If you have a house to sell, will it be hard or easy to sell in today’s market? This isn’t really something you can “google” or “phone a friend”. Honestly, in Central Ohio, it depends on your price point, the area you are looking in, and the market TODAY. We’ve had clients compete in multiple offers, pay over asking price, and waive their request to remedy to get a home. We’ve also helped clients negotiate and pay under the purchase price and not waive anything within the contract. So when you hear stories of friends and family and what they’ve been through, it doesn’t necessarily mean that will be your story too.
If you want to know what to expect in YOUR price point, in the area YOU are shopping in, and when YOU are looking to buy, let’s chat. Once you know what to expect in today’s market, you can put the pieces of the puzzle together to determine if you should buy now or wait!
So to answer the million dollar question, should you buy a home now? The short answer is it depends on what YOU want and your situation.
Let’s chat. This is part of what we do to help our clients reach their real estate and financial goals. If now isn’t the right time for you to buy, we will let you know.