There are three important questions all buyers must ask before making their purchase.

If you’re planning on purchasing a home, you’re probably getting a lot of advice from friends and family. While they may have your best interests at heart, they may not be fully aware of your needs and the state of the real estate market. 

Having the following three questions answered will help you determine whether now’s a good time to buy:

1. Why am I buying in the first place?  

This is the most important question to answer. Forget about the finances for a minute and find out why you started thinking about purchasing to begin with. Usually, the No. 1 reason people buy has nothing to do with money. On the contrary, they’re looking for a good place to raise children, get an education, keep their family safe, or just more space (and the control over that space). 

What does owning a home mean to you? What non-financial benefits will come from homeownership? The answer should be the biggest reason you decide to purchase. 

“Only you and your family will know for certain whether now’s the right time to purchase.”

2. Where are home values headed? 

You must make sure you’re buying at the right time. According to the latest home price index from CoreLogic, home values are projected to increase by 5.3% nationally over the next 12 months. Simply put, a $250,000 house that you could purchase right now will cost you $13,250 if you wait until next year. Your down payment will also have to be higher to account for the increase. 

3. Where are interest rates headed?

Buyers need to be concerned with more than just price. The long-term cost of a home can be dramatically impacted by even a small increase in mortgage rates. 

The bottom line is this: Only you and your family will know for certain whether now’s the right time to purchase. 

As always, if you have questions about this or any real estate topic or are thinking of selling a home soon, don’t hesitate to reach out to me. I’m happy to help.