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3 Questions You Need To Ask Before Buying A Home



If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.


Ask yourself the following three questions to help determine if now is a good time for you to buy in today’s market.


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

This is truly 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 money.


For example, a study by realtor.com found that “73% said buying in a good school district was “important” in their search.


This report supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. The actual reasons are:


A good place to raise children and provide them with a good educationA place where you and your family feel safeMore space for you and your familyControl of that space


What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.


2. Where are home values headed?

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in February (the latest data available) was $249,500. This is up 3.6% from last year. The increase also marks the 84th consecutive month with year-over-year gains.


Looking at home prices year over year, CoreLogic is forecasting an increase of 4.6%. In other words, a home that costs you $250,000 today will cost you an additional $11,500 if you wait until next year to buy it.


What does that mean to you?

Simply put, with prices increasing, it may cost you more if you wait until next year to buy. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy.


3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

Freddie Mac, Fannie Mae, the Mortgage Bankers Association and NAR have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:


Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.

I can help you navigate the home buying process and save you time, and certainly save you money. I get paid on commission by the seller when I bring them a buyer, so my services are completely free to home buyers. It is important for you to have your interests represented during the home buying process.

See you next time. 

Jennifer Sofield

Paoli

Malvern

Daylesford

Devon

Berwyn

Radnor

Lower Merion

Strafford

Villanova

Bryn Mawr

Wayne

Gladwyne

Penn Valley

Saint Davids

Rosemont

Haverford

Narberth

Ardmore

Bala Cynwyd

Wynnewood

Ready to Get Started? 

Copass Real Estate -Main Line

Compass RE - Jennifer Sofield - Agent

Suburban Square

6 E Montgomery Avenue, Suite 105

Ardmore, PA 19003

Jennifer Sofield is a team of Pennsylvania real estate licensee affiliated with Compass RE and the Town & Line Team. Compass RE is a licensed real estate broker and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage. Compass RE Main Line office phone:  (610) 822-3356. Broker of Record: John Bilek. 

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