My husband and I purchased our first home few months ago. As many homeowners can attest, buying a home for the first time is not nearly as simple as HGTV's "House Hunters" makes it look. In reality, it is a frustrating and arduous process, one that certainly requires a lot of time and patience.
If you are thinking about buying a home, here are some important questions to ask yourself before you take the plunge:
1. Do I really want to be a homeowner? The answer may seem obvious, but unfortunately many people rush into homeownership for the wrong reasons, such as pressure from family members, the urge to feel like an "adult," news reports and ads touting "low, low prices" or simple jealously after witnessing friends move into their new homes. The truth is that homeownership may not be right for you, or at least not at this point in your life. Be sure to thoughtfully consider the challenges of owning vs. renting (extra costs, maintenance, commitment, etc.) before you get too far along into the buying process.
2. Can I afford it? You're smart enough to know that you can only take on a mortgage that you can afford, but have you considered all the extra costs of owning a home? There's insurance, property taxes, assessments and garbage/sewer/water bills, not to mention the fact that all repair costs will be on you instead of a landlord. Make sure to factor in all those extra costs when setting up a budget for buying your home.
3. Do I plan to live there at least five years? This was one of the first questions our realtor asked during our initial meeting. She told us that if we weren't planning to live in the house for at least five years, we shouldn't be buying one. The housing market and overall economy are still too unstable to put yourself in a risky financial situation unless you plan on — or can at least tolerate — staying put for the next few years.
4. How will owning a home change my day-to-day life? Financial considerations aside, you need factor in how your new house will change your daily life. Will it add extra time to your commute? Is it further away from family and friends? Are you close to grocery stores and your child's school? Will you need to devote every weekend to yard work? The house in the country may be beautiful, but it might not be the most practical choice for your current lifestyle. Unless you are prepared for a drastic change, try to find a home that works for most aspects of your life.
5. Do I trust my realtor? A good realtor should be knowledgeable, listen to your wants and needs, and be readily available for viewings and questions. A realtor should not pressure you to buy, steer you toward properties that are out of your budget or demand that you sign an agreement to work solely with her. If you aren't completely comfortable with your realtor, dump her and find a new one.
6. Am I rushing into this to avoid signing a new lease? Yes, you are eager to be rid of noisy neighbors and inattentive landlords. However, you don't want to rush into buying a house just because your current lease is ending. When you consider that a house potentially costs hundreds of thousands of dollars, you shouldn't feel bad about paying a few thousand extra to renew your lease if you feel like you need more time to find the right house. If you are looking for a new house and your current lease is about to expire, see if your landlord will let you renew on a month-to-month or six-month basis.
7. How much work am I willing to put into the house? Some people love a fixer-upper, while others prefer something move-in ready. Almost any house will need some work (fresh paint, landscaping, new appliances, etc.), but you need to decide how much work you are willing to put in. If you've never so much as swung a hammer before, don't expect to be able to do a complete renovation without a lot of help and extra cash.
8. Will I really use that (pool, state-of-the-art kitchen, wet bar, etc.)? It's easy to be wooed by amenities, but don't end up wasting money on things you'll never use. Pools and beautiful gardens can be enticing, but they require a lot of upkeep. Decks and hot tubs are nice, but if you don't use them you may be wasting valuable yard space. And perhaps you'd rather use your basement for a home gym than a wet bar. Be careful that you don't let little perks keep you from properly assessing the property as a whole.
9. Am I prepared to walk away if the deal doesn't work out? Home-buying is an emotional experience. You may find the "perfect" house but end up in a bidding war with five other buyers. Or your offer might be accepted, but then you discover the house has serious structural problems or a leaky roof that puts it out of your budget. Don't let your emotions get the best of you — be sure you are mentally prepared to walk away from a house if the deal falls through or unseen problems arise.
10. Do I really like this place? I was starting to get fatigued by our house search when our realtor showed us a place that met all of our criteria — it was the right size, great location, required little work, etc. However, something in my gut told me it just wasn't the right place. Turns out, the very next house our realtor showed us was the one we ended up buying. No place will be perfect, but when you find the right house it should excite you and you should be able to picture yourself living happily in it. Don't settle.
The post 10 Questions to Ask Yourself Before Buying a House appeared first on How to Get Rid of Things™.
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