People who very much want to buy a home, but have persistence fears of actually going through with it, have every right to be concerned. Buying a home for most is usually the largest purchase one will make. It takes much thought, good advice and a clear understanding of what being a homeowner entails. Here are some of the top reasons buyers are wary of purchasing a home and advice on how to overcome the hurdles that may be holding you back.
Loss in Property Value
The Bad: No one can predict what will happen in the real estate market. Even pros don’t have a crystal ball and will tell you what home prices will be in ten years let alone ten months. Decline in property values happen for a variety of reasons: the economy, new home construction can make older neighbourhoods look dated and less attractive, development such as a landfill, highway or prison could be built nearby, or other issues.
The Good: Homeowners can take precautions to protect themselves from buying a home that could lose values. Always consider a homes location. Check with the city government to see if any future development in the works. Also, always buy in a low-crime area where there are excellent schools. Neighbourhoods that are well-kept primarily owner-occupied always fare better than other homes in less desirable areas.
The Bad: There is not a home that won’t require repair or upkeep costs at some point. A homeowner just can’t avoid these types of costs. But there are several things a buyer can do to prepare for them.
The Good: Buy a home that has been well maintained. Hire a reputable home inspector that can give you detailed information on a home you are considering to give you a heads-up if repairs will be required at some point. Also, consider buying a new home. While no home is 100 percent repair free, new construction is less likely to have major issues. Finally, buy a home that has recently had major repairs, upgrades or replaced equipment such as a new water heater, new plumbing and new electrical. If you still are unsure, ask the sellers to purchase a home warranty policy. It provides peace of mind should a covered repair be needed.
The Bad: While buyer’s remorse is not a common problem, it does happen. But maybe it’s because you don’t know what type of home or neighbourhood you actually want. This is an easy problem to fix.
The Good: Make a wish list of everything you MUST have in a home purchase. If you absolutely know you want a fireplace and three bedrooms, then write it down. Then make a list on items you would like to have but not necessary. Work with your real estate agent and see as many houses in your price range while focusing on your MUST have list. If you find a home that provides you with everything you want, then go and sleep on it before you make an offer. If you find that you really want the house, then discuss with your agent. Be careful not to exceed your budget, as that is what causes most buyers’ remorse. If you are ever unsure about a home, or if you feel pressured by a pushy real estate agent, then walk away. Find a new agent and remember that new homes come on the market every day.
Unable To Afford Your Mortgage Payment
The Bad: The economy of the past several years sure hasn’t helped buyers feel positive about the real estate market. This, of course, is understandable. Buyers are concerned that if they lose their job, they will lose their home as well as their deposit. Buyers then wonder why they don’t rent for the rest of their lives.
The Good: If you are considering buying a home, look at your job security. While no one ever knows what is going to happen, ask yourself if your company is in good standing. Are they giving raises, promotions or bonuses? Are layoff rumors whispered around the water cooler? But if you think that you are on good standing, it is still highly recommended that you have an emergency fund set aside with at least three months of living expenses available. Set up a budget so you know what your existing expenses are and how much you take home every month. Think about what new costs are involved with home ownership, such as utilities and insurance.
The Good: There are plenty of experts you can educate you on how mortgages work. Don’t buy a home until you have a good understanding of what you are getting into. While there are numerous books and classes available, you should also talk to a trusted professional that comes highly recommended to you by friends, family or co-workers. Finding out at the last-minute that you have agreed to a loan that you now realize is a mistake, can be a huge source of stress and anger.
Setting up an appointment with a professional Windsor real estate agent who can answer your questions about the current market and homes in your price range, can provide some comfort. Despite what you may think, a good agent will never try to sell you a home when you aren’t ready. Never feel pressured to make such a decision by an agent who is looking at a commission or doesn’t have your best interests at heart.