Is Now the Right Time to Buy a Home? When to Buy Instead of Rent

When you reach a certain age in life, you may find that people begin encouraging you to buy a home rather than continue renting a house or apartment. The market crash that occurred in the past made some potential buyers leery about buying a home, but now that the market rebounded, it's a good time for some to purchase their first homes. Before you begin calling on real estate agents and looking at homes for sale, find out if now is a good time for you to buy your first home.

Look at Housing Prices and Comps

When you first begin looking at homes for sale, it's important that you look at the comps for the neighborhood, which are the prices that similar houses sold for in the past. This gives you a good idea as to whether housing prices are stable or whether prices are a little high. Think about how much you can afford to spend as well. If the only houses within your price range are in bad neighborhoods or homes that require a significant amount of work, renting might be a better option.

Request a Copy of Your Credit History

The amount that you pay for a house depends on both your credit history and your credit score. When you have a lower credit score, you will generally only qualify for loans with a higher interest rate. That can leave you paying much more over the course of your mortgage than you would like. Taking just a few years to improve your credit history as you continue renting before buying a house can help you save money. Simple things like paying off hospital bills or paying down your credit cards can improve your score.

Think About Your Future

Many people buy a house without first thinking about what they want in the future. Unless you plan to stay in the same area for the next 10 years or more, buying isn't always the best option. Before calling Kuba Jewgieniew of Realty ONE Group, a real estate agent or an agency in your area, make sure you want to remain in your current area. You never know what the market might look like in the future or if you can sell that home for what you paid for it if you decide to move later. Thinking about these simple issues is the best way to decide if buying is better than renting.

Image courtesy of ddpavumba portfolio at FreeDigitalPhotos.net
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  1. I always thought that owning a home was the best thing. Some people do not realize how much work it really is. I look back now and feel like I want to rent again!

  2. When I think about buying my first home, I freak out a little. What if I have to sell it in 10 years due to my job moving and I cannot find a buyer? That would be a bad situation, don't you think?

  3. I have been wondering if I should rent or buy a home in my area. I look around and the prices seem to be very high compared to cities that are not that far away. Would it make more sense to rent, buy a home or move to these other cities?

  4. With the banks giving out less money and making it harder to get a home, checking and keeping an eye on your credit report is very important.

  5. I hate having to "rent", but where I live it is the most cost effective way to live. What other option do I have when homes are way over priced?


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