Should you buy a home now or wait?

Lately, I have been asked this question quite a bit. My answer is always, “It depends”. Everyone has a different circumstance. Let me give you some possible scenarios that may come close to your situation. These scenarios do not accommodate changing real estate markets. When you move from one city or state to another there are market differences to take into account. For the sake of comparison, lets assume you are staying in the same market or moving between very similar markets.

1. You are currently renting: You should not wait period. Home ownership is the single most important financial move anyone can make. It will help you to build wealth easier than any other method. You have to live somewhere so why pay someone else’s mortgage. If your concern is the current interest rates of mortgages, remember that as a renter you are paying 100% interest.

2. You currently own but need a bigger home: Maybe your family is growing or you just need more space. You would be exchanging the equity you have in your current home for a more expensive home. In a market that is declining slightly you may want to wait and see that the market has become more balanced. However, you need to remember that once prices stabilize and go up, your home may get a bigger price, but so will the more expensive home.

3. You currently own a home but need a smaller one: Your kids have moved out and you have too much home. In this scenario, I would encourage you to buy sooner rather than wait. One thing I have learned over the years is that real estate markets don’t always match your life’s schedule. If you are looking to “Rightsize” you should just do it. You are trading your existing equity in for a less expensive home you should also consider the value of having less to take care of. That being your home and your “stuff”. A smaller monthly expense would result from not only your home mortgage but your utilities, insurance and other home related expenses. I can tell you from my experience that people that complete a “Rightsize” move feel a tremendous sense of relief and usually regret not having done it sooner.

I hope these scenarios help you, but I understand that no two families are alike and everyone has a different story. If you would like our help figuring out what you should do, please just reach out. We are here to help, not just sell.