The decision to buy a house isn’t something that happens overnight. More often than not, it takes some time, a lot of thought, and even signs to help you arrive at that conclusion.
If you’re on the fence and need some more convincing to finally buy a home, here are a couple of signs that say go forward and realize your real estate goals.
- You’re ready to settle down in one place
Say, after years of traveling or exploring different cities and states, you finally find a place where you see yourself living for the next couple of years, maybe even for the rest of your life.
Since you are now about to establish your roots, purchasing a home rather than renting long-term can be a smart investment move. You will be able to build equity and, if market forces are agreeable, your home might even see an increase in its market value.
And since you’re ready to settle down in one place, nothing says stability more than living in your own home in a place you love.
- You can afford to buy a home
One of the reasons why others would rather rent a house for the meantime is because they’ve yet to acquire the funds to purchase. So, if you’re financially ready to buy a home, why not?
Take note, however, that the costs of buying a home and home ownership as a whole has many layers. But to start with, you need to have enough money to pay for your down payment. This can be anywhere between three to 20 percent, depending on the mortgage loan you get.
As a buyer, you want your offer to stand out. An earnest money deposit can make the deal sweeter. You don’t need a huge sum for this. Most real estate agents advise that one to two percent of the sales price is enough.
Another expense to take care of are closing costs. This includes the appraisal fee, the closing or escrow fee, the home inspection fee, and transfer taxes. In total, you might be paying anywhere from two to five percent of the purchase price for closing costs.
And finally, as a homeowner, you’ll need to pay your monthly mortgage payments, as well as property taxes, insurance, and home maintenance. Think of all these when examining your funds to determine if you can finally afford to buy a home.
- You need more room and space
At one point in our lives, we could all use some space. For some, a studio unit just won’t do anymore. Others are catering to the increasing needs of their growing families. In such cases, it’s time for an upgrade.
A larger, more spacious home will give everyone space to move and, as a result, improve your lifestyle (as well as the lifestyles of your family members, if you’re living with them). You can start new hobbies or projects, carve out a small space exclusively for work or play (or both), and enjoy all the other things you’ve always wanted to do but couldn’t because of the limited space of your old home.
Sure, you can also choose to rent a larger home, but combined with the first two signs, it’s a better investment to buy a new home.
- You have a stable source of income
Since money is required to purchase a home and to run the household, it’s important to have a steady and reliable source of income. It could be your own business or your job.
That said, don’t buy a house if your business or job requires you to constantly move to different places and stay there for some time. Until your source of income allows you to stay in one place for more than three years, it might be better off to rent, at least only for the meantime.
- The real estate market is in your favor
As a home buyer, it’s always helpful to keep yourself updated with the status of the local real estate market. You’ll be in the loop if it’s a good time to buy a home or if it’s better to wait.
Ideally, the best time to buy a home is when home prices are comparatively low, but other factors can also come into play. If the supply of homes is more than the demand for it, this is considered a buyers market. In such a situation, you can have the upper hand in buying a home.
On the other side of the scale is a seller’s market, when the demand far outweighs the supply. With limited homes for sale in the market, sellers are more in control and can keep home prices up.
And when you’re ready to buy a home in Cape Coral, get in touch with the Mike Lombardo Team at 239.898.3445 or leave them a note here. If you’re looking for more real estate resources, browse the website. You’ll find everything, from first-time home buyer tips and what to know before buying a house.