Wait, don't buy just yet

By Justin Hunter

Purchasing a home is one of the biggest dreams and goals for the majority of Americans. Some realize this dream quicker and easier than others.

Obviously, there are a host of things you must consider before purchasing a home, but other than financial obligations there are other factors that play into whether you should consider holding off that big purchase.

The article, “Reasons to Delay Buying a Home” posted on realestateabc.com, provides a few situations that may prompt a prospective home buyer to reconsider and wait for a clearer personal stable future.

Assuming you have the financial resources to own a home, there are a couple of other factors that should prevent you from doing so. But make sure that these legitimately apply to you because waiting to buy a home can cost you thousands of dollars in appreciation.

“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 situation is even more prominent if you made a total down payment of 10 percent or less.

“Real Estate commissions traditionally run around six percent of a home’s sales price. The seller’s closing costs generally come to about one and a half percent. You can see how this can easily exceed the first year’s appreciation. If you made a minimal down payment, you could actually have to come up with cash out of pocket to sell your home.”

One of the best reasons to delay buying a home is if you are new to the area. The reason for this is fairly obvious. Many people who move to a new city or state, especially for job relocation feel obligated to buy a home and start their new life. But if you are new to the area, you do not really know where you would like to live, besides the Internet and the day or two you spent looking at homes. You will be best served by renting for a couple of months before determining what neighborhood you and your family plan on living in. It makes sense to rent for a number of months before deciding on exactly where you want to live.

Another red flag in the home buying industry is an uncertain occupational 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.”

And the most unfortunate circumstance that should lead to backing out of a home purchase is when you and your spouse are having marital difficulties.

“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.”

Selling a home before it appreciates can create a financial burden that will be magnified during an already difficult and emotionally draining situation.

Basically, never buy a home if you are financially or economically unsure of your current or future status. You do not want to have to sell it quickly and cause a financial headache. After all, buying and owning a home is supposed to be a dream come true. By being responsible and sure of your surroundings, you can prevent it from becoming a nightmare.

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