Realistically Talking Real Estate

How many times have you read the time to buy is now!! It's a great time to buy!! Get off the fence and go buy a home!! Real estate agents today are pushing you into purchasing a home, and I myself am guilty of wanting people to buy homes. Why wouldn't I? I am a Logan Utah real estate agent, and I can only feed my family if I can sell homes. But is it really a great time to buy a home? It all depends on a couple of crucial factors. 

1. Do you have a stable job and money saved up for a down payment? 

If you're not sure about your employment like so many other Americans out there, don't risk it. If you don't feel comfortable in the job you currently have, afraid of reduced hours, or you know your company may be laying people off. It's not the right time for you to buy, it's just to risky.  Money for a down payment is crucial to buying real estate today, and if you don't have money saved up for a down payment, don't risk it. There are still people buying homes with no down payment, and if something happens in the next 3-7 years and they have to move. They are probably going to lose money, and will be underwater for the first 3-5 years on their loan.  No down payment? Too risky.

2. How long do you plan on staying in your location?

When I talk to clients today, I am avid about staying put for a descent amount of time. I tell my clients that they shouldn't expect home prices to come back for at least 5 years. They should plan on staying in a location for at least that long, and if they can't, maybe they should rent instead. Of course, most people don't like to rent, and that is their decision, but I do like to make sure they realize the market isn't coming back anytime soon. It's going to take time. Most Americans realize this already, and are planning to stay longer in their homes compared to 3 years ago at the markets height. Plan on moving a lot? Don't buy it's too risky. 

Feel stable, have money in the bank, and want a great deal on a home? Then maybe it's the right time for you to buy. Home prices have fallen, everyone knows that, and interest rates are incredibly low. If you have a stable job, plan to stay put for at least 5 years, and have money in the bank or equity in your home for a down payment, then maybe you are ready to buy. But be sure to look at the market realistically, plan ahead, and do what's best for you and your family. Don't buy the hype, it's too risky.