“While buying a home is an excellent investment, there are times when it’s smarter to wait to buy a house, especially if you’re not ready financially, emotionally, or career-wise,” says expert real estate agent Mike Dotson.
Let’s face it, every Realtor I know, including myself, is a massive fan of people buying and owning homes. We can rattle off dozens of reasons why buying a home is a good idea. Numerous studies have shown that homeownership is one of the key ways people can build wealth. In addition, it becomes a place to take pride in! The list could continue; however, this article is about why you should wait to buy a house.
This is not meant to discourage you from buying a home. Rather, it should be a helpful guide about whether or not buying a house is a wise decision. There are better times to consider purchasing a home, and pausing your home-buying may be the best idea.
Here are the top six reasons why you should wait to buy a house.
1. You Don’t Plan to Stay
If the buyer knows they will not be staying in that town for very long, renting may be a better option. For example, if you are a medical intern or have a short-term work contract, waiting to buy a home may make sense.
The high costs associated with buying and selling a home are worth it when you own the home for at least five years. Oftentimes, if you sell before the five-year mark, the house has not built up enough equity to pay for the sale of the home.
2. Your Credit Isn’t Ready Yet
Suppose a buyer’s credit is barely hanging on by a thread. Some lenders will say, “Yes,” when the better answer may be, “Wait until your credit is stronger.”
Waiting is not wired in most people’s nature, but sometimes waiting may be the best thing they can do for the long run. Just because a lender says you are qualified for a loan doesn’t mean you should push the envelope and buy that dream home. Work to improve your credit until you have a solid financial foundation.
3. It’s a Marriage Band-Aid
Buying a home will not fix a marriage.
Some people think that buying a home will fix their marital problems. However, buying a home is a stressful journey. A struggling marriage will often only struggle more if they decide to buy a house. Not to meddle, but a marriage counselor is a better idea.
4. Your Income is Changing
If you are nearing retirement, and your fixed retirement income will not match what you earned while working full-time, it is better to wait to buy a house.
It’s essential to crunch numbers and determine your retirement income before you commit to a thirty-year mortgage. Retirement should be a season of enjoyment, not stress over high monthly mortgage payments.
5. It’s Retail Therapy
Emotional buying is real. And, if you’re buying a home to cover up or fix another problem in life, the home may only cause more problems.
While homes can provide many positives, from stability to community, if the home purchase isn’t thought out, it could cause regret down the line. If you’ve recently undergone a major life transition, it might be wise to wait to buy a home.
6. There Are Too Many Concessions
Most home purchases require compromise. However, if you’re compromising too much just to own a home, then it’s better to wait to buy a home.
When a buyer falls in love with the idea of buying a home so much that they are willing to compromise on what they need in a home, they set themselves up for a big disappointment. This plays out when a buyer has viewed twenty homes in two weeks and starts thinking they will never find a home. They then start saying things like, “one bathroom will be Ok, or “ We can make it work with three bedrooms.” Compromise is part of house buying, but settling for what you know will not be a good fit in the long run is not a good idea.
Oftentimes, you’ll be able to find “that near-perfect home.” There will always be a bigger or nicer home than the one you like, but a good Realtor will always help you find a home that truly works for you without major compromise.
Work with an Expert
If you feel pressured by an agent or lender to buy a home, you may sense that something is off.
Perhaps that individual is chasing a sale rather than fostering a healthy relationship with you, the buyer. If you think this is the case, trust your instincts and pause your home search. It’s better to wait to buy a house rather than be pressured into a major purchase that you’ll regret.
Ultimately, find a real estate agent who has your back. A professional Realtor will guide you and will have your best interests at heart.