Purchasing a new home requires planning months in advance when you can take the time to evaluate all the variables involved. Spot buying real estate is never a good idea. Things are rarely ever perfect as far as buying a new home is concerned, but certain elements make buying a house more suitable including:
When Your Finances Are in Order
The best time to buy a house is when you can afford it. If you try to purchase a new home when your finances are not in order, trouble will certainly follow.
There are many views as to when finances are good enough to make a real estate purchase. The ultimate time is when you can afford to buy a new home without going into debt.
Very few people can manage to purchase a house without a mortgage. So, buying a house when you can afford to pay it back is what most people should aim for as it will affect you far into the future.
Timing is extremely crucial when deciding when to buy a house and particularly as it relates to the seasons. The truth is that there are certain periods of the year when buying a house is more beneficial than others.
The best time of the year to buy a new house is during winter. Winter is considered to be the offseason of the real estate market as most people are not willing to struggle with the cold to look for houses.
Most people who sell their homes in the winter are usually dealing with a time-sensitive issue which gives you more negotiating power. On the other hand, there are not as many listings during winter as summer, but you will assuredly get a good deal.
The real estate market contains two markets: buyer’s and seller’s markets. In the former, house prices are low and, in the latter, they are high due to certain economic and socio-political factors.
The time to buy a house as the name implies is during a strong buyer’s market. You can utilize this useful guide to find out how you are going to find a market in a buyer’s market. The best houses are not likely to be on sale during a buyer’s market. What you will be looking for and will likely find are diamonds in the rough.
When You Have a Good Mortgage Rate
Most people who buy houses do so using a mortgage and though there are different mortgage rates based on credit scores, there are times when mortgage rates are generally low. Mortgage rates are influenced by overall interest rates and other economic factors and hence change accordingly.
Most mortgages consist of 15-year or 30-year fixed-rate loans. Therefore, if you find a good mortgage rate, it will benefit you for decades to come.
You should be wary of adjustable mortgage rates, which start with an enticingly low interest only to increase sometimes drastically in the future. Ensure you understand all details in the loan agreement.
When Your Home No Longer Suits Your Needs
Sometimes, you may simply outgrow your home. In such a case, buying a new house may not be a choice but a necessity.
Examples are when you now have children as opposed to when you moved in or when you simply need more space to sustain your lifestyle. Lifestyle changes such as an increase in income or divorce may also necessitate the purchase of a new property.
However, you should take the time to consider if the changes will be long term because a house is certainly a long-term investment.
When You Are Emotionally Ready
The vast majority of people have a strong emotional connection to their homes. Leaving it is more than an economic decision and may be very emotional particularly if long periods have been spent there.
A home is a safe haven and if you are not ready to leave it, your new home will pale in comparison. It will simply feel as if something is missing.
Therefore, you have to come to terms with the decision to buy a new home, or else you may regret it for the rest of your life.
There is never going to be the perfect time to buy a new house. However, there are certain times that are clearly better than others. If you follow the guidelines above, your decision to sell your house and be a new one will be one followed by the peace of mind.