Real estate has always been a hot market. It never mattered if the prices spared up or the interest rates from lenders swooped down, the housing market always had had ample fodder to feed on.
The pandemic changed the game for real estate players, both the buyers and the sellers. Bo that we are past the shock factor of the pandemic, the market for housing has thrown up a number of surprises for home buyers in Spokane and the rest of USA.
In case you are looking to buy a home (finally!) you must act tough and ask yourself few important questions first.
Financial Goals
Analyze what your short term and long term fiscal goals are. True, buying a home is a sensible long term investment. However, it doesn’t mean that this will automatically sort out all your other short term goals. Only when your basics are sorted, in terms of insurance, health and the like do think of investing a chunk into a home. Do ensure you are sure you stay in the property at least for five years. Anything lesser means your investment will not be the right one at the moment. After all, buying a home is not a financial guarantee of any sort.
Buying Versus Selling
The current market is in no way back to normal standards yet. The homes up for sale are far less than homes in demand for purchase. Therefore, in such a market it is best to weigh all your options twice over before singing on a dotted line.
Sometimes even after you buy a house and plan to sell it off, you realize you barely receive good enough offers.
Living In The House
You do not just live inside a home. You live in a home and in its surroundings. Sometimes you might go overboard and pay a hefty price to get a dream home. However, you only realize later that the location is not as per your taste or liking. This must not be the case. Do consider the locality since this helps you manage to pull up a hefty investment happily given the many advantages it brings in.
Upgrades And Investments
Buying a home does not mean you end up spending only the buying price for the same. Initially and over time, you need to invest in so many nooks and corners of a house, to make it living-worthy as per your needs.
Value Of The House
The price you pay for a house on the market will not necessarily justify its value. The value of a home in the coming years must appreciate instead of depriciating.Then again, sometimes you pay too much to get a dream home but the market never really justifies such a pricing. Be careful of such impulses. Sentiments and emotions do form a part of buying a home but staying sane here helps more than you expect.
The Percentage Game
Always consider how comfortable you would be in paying close to 20 per cent down payment at the least. This helps you get better offers from the market too. Anything lower, will only turn the stakes in favor of the seller. Again, weigh the comfort level involved in your day to day life when you dedicate at least 28 per cent of income to housing mortgage and investments. Going overboard here will only make you house poor.
Summing Up
Buying a home is important but more important is considering your affordability first. Simply sealing a deal is in no way a good step in the current housing market.