3 Questions You Must Answer When Buying a Home

If you are thinking about purchasing a home right now, you are surely getting a lot of advice. And some of that advice is probably negative. Why buy now with prices still falling? Don’t you realize real estate is no longer a good investment? Don’t you know that people who bought six years ago lost their shirt?  I understand the concern your friends and family have. However, let’s look at whether or not now is actually the perfect time to buy a home.
There are three questions you should ask before purchasing in today’s market:

1. What are the experts recommending?

In the last 120 days, many experts have said that buying now makes sense. This list includes: John Talbott, Christopher Thornberg and Warren Buffett.

2. When will I begin to see appreciation if I buy now?

This is a great question.  The experts are predicting prices to remain relatively flat in 2012. They are then projecting prices to rise gradually with recovery appreciation up to 1% per year.  This is also variable based on the market and type of housing you are buying.  Always talk with a professional Realtor regarding what you are looking for, and how this fits into the big picture.   Of course, housing isn't always a tool for investment ~ it's a necessity to meet your needs.  But ~ if you can plan smart, it can be both when you are flexible.
Purchasing a home today makes great sense from a financial standpoint. Think of the old axiom: you want to buy low and sell high. This decision should not only be a financial one however.
That leads us to our third and final question:

3. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. The Fannie Mae National Housing Survey shows that the four major reasons people buy a home have nothing to do with money:

• A good place 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 reason you decide to purchase or not.

Bottom Line

Plan smart with a professional Realtor so you can make the right decision for you and your family. In the long run, the finances will work in your favor.