Moving Out: When You’re Ready to Buy a Home

A first-time home buyer should make sure that he is ready to settle down and stay in one place for a while before he buys a home. Moving is a lot more complicated for the homeowner than it is for the renter. The renter simply cleans up and collects his deductible. The homeowner, on the other hand, has to fix and possibly paint his house to get it ready to be sold, hire a real estate agent to list his home, conduct an open house, and hope that he gets a decent offer. The worst case scenario for the renter is that he doesn’t get his deductible back. The worst case scenario for the homeowner is that he cannot sell his house for what he owes on it – potentially losing tens of thousands of dollars. In normal housing market conditions, it takes about five years for the value of a home to appreciate high enough to cover the upfront costs of buying it. Therefore, unless you are reasonably certain that you are staying put for at least five years, do not buy a house.

A home buyer should also be prepared for the responsibilities of home maintenance. There is both a positive and a negative side to this. On the one hand, the homeowner does not need to get permission from a landlord to knock down a wall. However, the homeowner is also financially responsible for everything that goes wrong. Every leaky drain, every settlement crack, and every chip in the paint is the homeowner’s responsibility. No one should buy a house unless he is prepared to shoulder these responsibilities.

Finally, finances are a huge determining factor as to when you’re ready to buy a home. Since buying a house is a long-term commitment, homeowners might have to put up with noisy neighbors, a long commute to work, and a tight budget for a long time. If renting for a few more years will make it easier for homeowners to comfortably afford the home of their dreams, it could be worth the wait. This means taking care of any debt and saving up for the down payment and closing costs. People should not buy a house if it would be a close call financially for them to make it happen.

When a couple buys a house, they are also buying a way of life. Buying a home is a huge financial milestone that is unlike any other purchase. Home buyers need to make smart choices so that they are not left with buyer’s remorse.