With the real estate market doing the best it has ever done, many first-time home buyers are wary of buying. Obviously, low interest rates will not last forever, so many individuals are taking advantage. However, low interest rates are not the only thing for potential buyers to consider. In this article we will discuss other variables to determine if now is your time to buy. While this is not a comprehensive guide that works for everyone, this is a good place to start.
There is No ‘Perfect Time’
Buying A Home
With the market the way it is, many potential buyers are waiting until the market ‘cools.’ However, this might come back to bite them in the behind. Waiting for the ‘perfect time’ to buy a home may cause a buyer to miss out on favorable rates, their dream home, or an extremely good value deal. There will be a time when mortgage interest rates go up. When rates finally are raised, some price pressures of the market will be eased.
However, if a buyer is waiting for prices to cool, this is more than likely the only way they will. Over the long run, waiting for a market correction could lead to paying more over the course of the loan through interest. If a potential buyer plans on buying, they should not wait. Buying a home has more intrinsic values and should not be driven solely by finances. Homeownership is still the American dream, so the truly ‘perfect time’ is whenever they feel ready and able.
Motivation of Buying A Home
When purchasing a home, whether for the first time or to upsize or downsize, a buyer should know their ‘why.’ Debating whether it is a good time to buy should take into consideration more than just low mortgage rates. How is your job stability? How is your financial well-being? Why do you really want to buy a new home? These are just a few questions to ask when considering if now is the time to buy. Knowing your ‘why’ will help potential buyers navigate through the seller’s market we have been in for 18 months. Once a buyer determines their ‘why,’ and has their finances in check, the process of home buying should be as simple as buying a home can be.
Set Home Buying Criteria
As the old adage goes, “Just because there are plenty of fish in the ocean doesn’t mean you are going to catch a big one.” This can be applied to buying a home as just because there is many homes on the market, doesn’t mean you will always be able to get the best one. While low interest rates are the main backbone to a new investment in property, they should not be the only criteria. Before a potential buyer sets out on their journey to look for their dream home, they should set down parameters for their searches. Before contacting your realtor, make a list of criteria for must haves and cannot haves to help in your home buying search.
When Buying A Home
When it is all said and done, it is important to remember affordability. Affordability is more than likely the most important factor when buying a home. Ask yourself this: Can I even afford to buy? Many potential buyers often forget about the costs of homeownership. Remember, you will not just be paying on a loan, but also paying for groceries, taxes, utilities, and more. While rates do influence affordability, price does as well. Buying an overpriced home just because interest rates are low is not always a smart investment. Many first-time home buyers bite off more than they can choose by using the entirety of their loan amount and become house poor. Keep these other factors in mind when questioning affordability.
Buying A Home
Finally, do not overthink the process of buying a home. If a potential buyer comes across a good home, a good neighborhood, and have to capability to purchase a home, go for it. There is little hope in actually trying to time the market and often times people are near-sited on property values. With the market the way it is, coupled with historically high asset prices, many buyers are waiting for the ‘correction.’ However, this is foolish to think because even professionals cannot time the market. Remember the old adage when buying a home; It is not about timing the market, it is about time in the market. A near-term correction often times is healthy for the market in the long run. Many potential buyers are wary of getting burnt by a correction, but remember that homeownership has a lot more to do with intrinsic factors than extrinsic factors.
With this short guide, we hope to help buyer make the next step toward homeownership. Real estate is a long-term game, so focusing too much on the now is detrimental. Remember, real estate is often times an appreciating asset. However, that is not going to happen overnight. We will leave you with this: Jeff Bezos once asked Warren Buffet why everyone doesn’t do what he does. Warren’s response? No one wants to get rich slow. Remember that going into buying your home. It is a long game that takes years on years, and nothing happens overnight.
Stone Lakes Neighborhood
Stone Lakes is a beautiful neighborhood located right off of Taylorsville Road, just before the Gene Snyder Freeway. The neighborhood features a 34 acre nature preserve with sidewalks, lakes, and playgrounds along the way.
Stone Lakes development started the same way as most did in Jeffersontown. The development started due to the desperate need for new construction housing based on the development of the area. During development, construction featured beautiful brick venire homes and finished basements. Because there is two sections, developers created two entrances located off Taylorsville Road. The estate section of Stone Lakes came later and, like Saratoga Woods, these lots were typically bigger which led to larger homes.