15 Things To Know Before Buying A House

Buying a house is a huge decision. For most, it’s the largest financial transaction of their lives. If you plan to buy a home this year, you need to be prepared. Here are 15 things you must know before buying a house.

Ignore the National Media

Both buyers and sellers should ignore what the national news media has to say about the housing market.

Ignore the Slogans in Realtor Ads

It’s important to understand the “now is the time to buy” slogan is marketing, not market research. Realtors are motivated to sell homes to make a living. While you should certainly hire one to help with the transaction, they are not necessarily experts when it comes to financial advice.

Compare Renting vs. Buying

Most will tell you that you can buy for the same monthly cost as renting. However, this isn’t true for every location. Some cities provide rentals for half the cost or even less, compared to buying. You may even be able to rent a larger home than you can afford to buy.

Consider Every Cost of Renting vs. Buying

Even though you may be able to rent for a lower cost than buying, in some areas, you have to consider all the costs involved. If you are renting, you don’t have to pay for maintenance, replacements or repairs. However, you may be limited when it comes to customizing your home, too.

Never Buy just for “Tax Advantages”

Many of the costs of owning a home are not tax deductible and you won’t face them if you are renting.

Avoid Buying the Largest or Most Expensive Home in the Neighborhood

The most expensive hoe in the neighborhood isn’t a good buy, unless you are incredibly wealthy.

Don’t Listen to those telling you “a home is an investment”

When you are buying a home to live in, it’s not an investment. It’s a place to live. Buy the home because you love it, you see yourself living there and you can afford it. If it gains value, that’s just an added bonus.

Consider the Benefits of Buying vs. Renting

Owning comes with a set of benefits you don’t get with renting. First, you don’t have to deal with a landlord. Second, if you want to remodel, you can. Third, it’s your home and you won’t have to play by anybody else’s rules.