Three Questions to Ask Before Buying a Home
If you are thinking about buying a home right now, you are probably getting a lot of advice. While family and friends may have your best interests in mind, they may not be fully aware of your needs and what is the current state of the real estate market. Is now actually a good time for you to buy a home?
Let's consider three questions you should ask before making that purchase:
1. Why am I buying this home?
This is the most important question for you to answer. Why did you even begin to consider buying a home? A recent study at Harvard University found that the four major reasons people buy a home have nothing to do with money. They are:
- A good place for them to raise children and for them to get a good education.
- A place where you and your family feel safe.
- More space for you and your family.
- Control of the space.
What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the main reason that you decide to buy or not.
2. Where are home values headed?
The latest survey of over 100 economists, real estate experts and investment and market strategists projected the following:
- Home values will appreciate by 4.3% in 2014.
- The cumulative appreciation will be 28% by 2018.
- Even the experts who are most bearish are still projecting a cumulative appreciation of nearly 17% by 2018.
Where are mortgage rates headed?
As a buyer, you need to be concerned about more than just prices. The long term cost of a home can be significantly impacted by an increase in mortgage rates.
The Mortgage Bankers Association, the National Association of REALTORS, Fannie Mae and Freddie Mac have all projected that mortgage rates with increase by approximately one full percentage point over the next 12 months.
Only you and your family can know for sure the time that is right for you to purchase a home. Answering these three questions should help you to make that decision.
If the time for you to buy is now, then I urge you to call me to help you find the right home.
Tony Morganti, CRS, ABR