Top 3 Questions To Ask Before Buying A Home In Elk Grove

Dated: 04/22/2019

Views: 16

3 Questions You Need To Ask Before Buying A Home

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.

Ask yourself the following three questions to help determine if now is a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This is truly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.

For example, a study by realtor.com found that “73% said buying in a good school district was “important” in their search.

This report supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. The actual reasons are:

  • A good place to raise children and provide them with a good education

  • A place where you and your family feel safe

  • More space for you and your family

  • Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in February (the latest data available) was $249,500. This is up 3.6% from last year. The increase also marks the 84th consecutive month with year-over-year gains.

Looking at home prices year over year, CoreLogic is forecasting an increase of 4.6%. In other words, a home that costs you $250,000 today will cost you an additional $11,500 if you wait until next year to buy it.

What does that mean to you?

Simply put, with prices increasing, it may cost you more if you wait until next year to buy. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

Freddie Mac, Fannie Mae, the Mortgage Bankers Association and NAR have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:

Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.


(Originally posted at Simplifying the Market)

If you have decided that now is the right time for you to buy a home, let us help! Call today to start your search, 916-525-5888.

Cathy Davis Sells Elk Grove Homes


Blog author image

Cathy Davis

Cathy is a staunch advocate for her real estate clients, always focusing on a win-win scenario during negotiations. She began her real estate career in 2013 after working for over 20 years as a nurse ....

Want to Advertise on this Site?

Latest Blog Posts

Top 3 Questions To Ask Before Buying A Home In Elk Grove

3 Questions You Need To Ask Before Buying A HomeIf you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family have your best interests at

Read More

2019 Sacramento Easter Services And Activities

Here are a few activities and Easter services in the Sacramento area (and beyond) for Sunday April 21, 2019.Easter Sunrise Service1. Sunday April 21, 6:30 am Sunrise Service in McKinley Park's

Read More

Friday Upcoming Events Free Or Fun

Hello and Welcome!  #FridayUpcomingEventsMedicare Explained (Stockton) Wed, Apr 24, 10:00 am Sutter Gould Medical Foundation, Stockton, CA Freehttps://www.eventbrite.com/e/medicare

Read More

Home Maintenance Tips For Your Elk Grove Home

Here is your checklist of tips to maintain your Elk Grove home for the month of April. Check back each month to see how to keep your home in pristine shape so there is less work to do when

Read More