Regardless of how ideal the market may seem, it’s still a good idea to sit down with your real estate agent and think about how you see your life in three or five years and ask some pointed questions.
Can I afford it?
Buying a house will have a significant impact on your finances, so make sure you can handle it.
Housing is more affordable than ever and incentives like low interest rates and the new expanded tax credit are enticing buyer to enter the market. But purchasing property involves a lot of upfront costs: closing costs, down payment, new furniture, moving expenses. Do you have enough cash?
Do I plan to live here for at least five years?
Most personal finance experts say that unless you plan to live in a home for at least five years, you likely won’t recoup any of the expenses associated with buying and later selling the house.
Plus, your first few years of mortgage payments primarily pay off interest, not your principal, so you will not have built up a lot of equity in your home. You may be better off renting if you expect to move in the next couple of years. Just because you live in a buyer’s market doesn’t mean the time is right for you to buy.
Whatever your looking for, work with a real estate professional that specializes in it. Good luck and happy house hunting