Reasons to Delay buying a home|
Reasons to Delay Buying a Home
Assuming you have the financial resources and the desire to eventually
own your own home, there are very few good reasons to put off the
purchase. You can miss out on years of appreciation if you do.
The main thing you want to avoid when buying a home is being put in a
position where you will have to sell it too soon. If you have to sell a
home before it has appreciated enough to cover the costs and
commissions of selling, you could find yourself in a financial bind. This
is especially true for those who buy a home with a down payment of
ten percent or less.
Real Estate commissions traditionally run around six percent of a
homeís sales price. The sellerís closing costs generally come to about
one and a half percent. You can see how this can easily exceed the
first yearís appreciation. If you made a minimal down payment, you
could actually have to come up with cash out of pocket to sell your
New to the Area
A very good to reason to delay buying a home is if you have just moved
to an unfamiliar area or region of the country. It makes sense to rent for
a number of months before deciding on exactly where you want to live.
Often when people buy a home immediately they find that they have
might have made a better decision if they had waited awhile.
Uncertain Job Future
You could be right out of college or expecting a promotion and a
transfer. Or your company has announced and impending
"restructuring." If any of these apply, it might be best to wait to buy a
home. When you have a more accurate picture of what your next few
years will be like, that will be the time to buy.
Real estate agents see a lot of life unfold before their eyes. One of the
saddest occurs when former clients divorce and are forced to sell a
recently purchased house. It happens all too often when a family in
turmoil decides that buying a new home may help resolve their
problems. Perhaps it is inevitable that such problems occur, but selling
a home before it appreciates can create an additional financial burden
in an already difficult situation.
copyright 2000 by Terry Light and RealEstate ABC
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