Are 'What Ifs' Holding Your Homebuying Dreams Hostage? Let's Get Real!
Picture this: you're considering buying a house, but then a wave of doubts crashes in. What if mortgage rates drop after I buy? What if home prices suddenly plummet? What if I lose my job after becoming a homeowner?
The list goes on and on. These are pretty common concerns that many grapple with before taking the plunge into real estate.
However, these "what ifs" could also leave you frozen with fear --potentially making you miss out on opportunities to own valuable real estate and enjoy the life of a homeowner.
So, how do we shake off these doubts and move forward? Let's get to the bottom of these "what ifs" and expose the truth.
Let's start with a classic:
"What if I buy now and the price drops?"
A recent study by Opendoor revealed that a whopping 93% of potential homebuyers think the current homes are just too pricey. This is prompting some to hold off until prices drop.
But that could be a big mistake, and here's why.
Despite the higher prices and shortage of houses for sale, homes are still selling faster in 2023 than in 2019!
Instead of worrying about the "what ifs" of pricing, focus on what matters most.
Ask yourself if you really love the home, if it suits your needs, and if it fits your budget. If the answers are a resounding "yes," you might be on the right track.
Now, let's tackle another worry:
"What if I buy now and mortgage rates fall?"
Concerns over interest rates are totally understandable. It might seem like rates are sky-high, especially after getting used to super-low rates in 2020-22.
But here's the scoop: if you look back over the last 30 years, the average mortgage interest rate has been around 7%. So those rates that seem high now are actually not as unusual as they might appear.
Let's also remember that you've got some options up your sleeve! FHA, VA, USDA loans, and multiple other loan programs and qualifying factors can lower your rate.
Now, onto a classic concern:
"What if the house has hidden problems that drain my wallet?"
Nothing sours the homeowner experience like unexpected expenses popping up left and right. And for those DIY enthusiasts eyeing a fixer-upper, things might not turn out as dreamy as they hoped.
Here's the deal—over half of buyers who went for fixer-uppers in recent years found themselves spending more money than they bargained for. The cost per square foot for a fixer-upper is higher, and on top of that, the ongoing maintenance can bite your budget.
So, how do you brace for this "what if" scenario? With a budget!
Create a budget that includes room for surprise repairs or renovations. Oh, and get a home inspection before sealing the deal. It's like giving your potential home a thorough checkup.
And here's a nifty trick: you could ask the seller to throw in a home warranty for the first year. You might want to consider getting one if they're not up for it. It could save you a bundle down the road.
Remember, while these worries are natural, they shouldn't hold you back.
Focus on what matters most: finding a home you love that suits your needs and budget.
And when it comes to life's twists and turns, a solid plan, a dash of positivity, and us as your trusted mortgage partner, you'll go a long way.