Buying a new home is a big decision, and brings big life changes no matter when or where you’re buying. The last year has sent the real estate market into overdrive, and added a whole new set of decisions and things to consider.
I recently bought my first home. Not surprisingly, it took making offers on two other homes and being outbid before successfully making the purchase on a third house. Even then, the final price went a little over the original asking price. It’s simply the nature of today’s market.
This is where buying in this kind of market becomes a balancing act. Yes, prices are driving up right now, but interest rates are still at record lows. This environment presents a big decision for buyers – should you make the purchase now and chase the price up a little, or wait for home prices to stabilize or drop, but risk paying a higher interest rate?
The answer of course varies based on several factors, including the market you’re buying in, how much mortgage you’re planning to take on, what interest rate you qualify for, how long you plan to live in the home, and your current living situation. Some markets are hotter than others, and interest rates can vary based on location, credit score and other factors.
Having gone through this process myself recently, my biggest advice is to be patient, and keep emotions out of the decision. Paying too much for a home you’re too emotionally invested in could backfire later as the market settles down. Emotions can run high in bidding wars, but remember: another house will always come along that will fit your needs.
Are you thinking about buying a new home soon? Our team can sit down with you and go over your options, budget, and answer any questions you may have about buying in this market. Give us a call – we’re here to help.
1792 Alysheba Way,Suite 201,Lexington, KY 40509
Phone: 859.219.1006Fax: 859.219.1012
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