|Reasons to Delay Buying a Home
Assuming you have the financial resources and
the desire to eventually own your own home, there are very few
good reasons to put off the purchase. You can miss out on years
of appreciation if you do.
The main thing you want to avoid when buying a home is being put
in a position where you will have to sell it too soon. If you
have to sell a home before it has appreciated enough to cover
the costs and commissions of selling, you could find yourself in
a financial bind. This is especially true for those who buy a
home with a down payment of ten percent or less.
Real Estate commissions traditionally run around six percent of
a homeís sales price. The sellerís closing costs generally come
to about one and a half percent. You can see how this can easily
exceed the first yearís appreciation. If you made a minimal down
payment, you could actually have to come up with cash out of
pocket to sell your home.
New to the Area
A very good to reason to delay buying a home is if you have just
moved to an unfamiliar area or region of the country. It makes
sense to rent for a number of months before deciding on exactly
where you want to live. Often when people buy a home immediately
they find that they might have made a better decision if they
had waited awhile.
Uncertain Job Future
You could be right out of college or expecting a promotion and a
transfer. Or your company has announced an impending
"restructuring." If any of these apply, it might be best to wait
to buy a home. When you have a more accurate picture of what
your next few years will be like, that will be the time to buy.
Real estate agents see a lot of life unfold before their eyes.
One of the saddest occurs when former clients divorce and are
forced to sell a recently purchased house. It happens all too
often when a family in turmoil decides that buying a new home
may help resolve their problems. Perhaps it is inevitable that
such problems occur, but selling a home before it appreciates
can create an additional financial burden in an already