subject: Reasons to Delay a Home Purchase [print this page] Reasons to Delay a Home Purchase Reasons to Delay a Home Purchase
Imagine for a moment that you are financially able to own your own home. You have the resources and desire to jump into the real estate pool head first. Keep in mind that there are a few reasons why you would want to put off this major purchase.
The worst thing that can happen to a person is purchasing a home, and then finding they are in a situation where they need to sell it quickly. If that happens, you will often be forced to unload the property before it has appreciated in value enough to cover all the expenses you incurred in buying it. That could leave you in a financial mess that you may never recover from. This especially applies to prospective buyers who are planning to put down less than a 10 percent down payment.
A commission on a real estate purchase will generally be around 6 percent of the home's sale price, while the closing costs will be about one and a half percent. You can do some quick math, based on home prices, and see how those costs will exceed a short term appreciation. If you chose a minimum down payment, and need to sell quickly, you may find yourself paying to sell your home.
Are you new to the area?
A good reason to delay a home purchase is if you are new to the area. It would be a smart idea to enter a short-term rental agreement while you get used to the area and decide where you would like to live for the long-term. Many people make a quick home purchase, and then realize they do not like the area or neighborhood.
Is your job stable?
Are you fresh out of college with a degree under your belt? Has your company promised you a transfer or promotion? Has your company recently announced that they are restructuring? If you can answer yes to any of those questions, then it may be a bad time to buy. You should have a complete picture of what the upcoming years hold for you before making a real estate purchase.
Are you having marital problems?
This happens more often than you might think. Couples who may be having marital troubles decide that buying a home will force them to work out their issues. A home purchase involves a lot of work, and stress at times. This can put a strain on an already volatile situation, forcing you to sell and make an already difficult situation even worse.
