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3 Questions to Ask Before Buying Your Next Home

Monday, October 10, 2016   /   by David Veenstra

3 Questions to Ask Before Buying Your Next Home

Kalamazoo Real Estate - If you are in the market to purchase a home, start by asking yourself the following 3 questions to help determine if now is actually a good time for you to buy in today’s Kalamazoo market.

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

For many people, a major reason to buy a new home is because it will save them money AND make them money.  Those are two really good reasons.  When you did a bit deeper however, you may notice that for most people, the underlying reasons to purchase has nothing to do with money.

For example,  over 75% of parents say “their child’s education is an important part of the search for a new home.”according to a recent survey by Braun. This survey supports a study by the Joint Center for Housing Studies at Harvard University which shows that there are four major reasons that people purchase Kalamazoo area real estate and those 4 reasons do not have anything to do with money.

Here are the top four reasons, besides money, that people purchase a home:

    • They want a good place to raise their children and they want to live in a neighborhood where the schools are really strong so their kids get a good education

    • They want to live in a place where they feel safe and their family also feels safe

    • They want to have more space to raise their family

    • They want to have control of that space.  They want to be able to feel proud of their situation and enjoy the ownership rights to decorate, update mechanicals, make changes, etc.

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 is often one of the reason people move into a home ownership track.

2. Where are home values headed?

Another reason, is definitely related to your financial situation.  According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months.

What are the implications of a home value price increase of 5.3%?

Simply put, if you are planning on buying a home that costs $250,000 today, that same home will cost you an additional $13,250 if you wait until next year. Your down payment will need to be higher as well to account for the higher home price.  Waiting to purchase a home when prices are heading up means that you will not be able to afford as much house if you wait!  

3. Where are mortgage interest rates headed?

A buyer must also be concerned about more than just prices. The ‘actual cost’ of owning your home over the long range can be dramatically impacted by even a small increase in mortgage rates.

The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase over the next twelve months as you can see in the chart below:  A higher interest rate means that your home will cost you quite a bit more money over the life of your loan.  

Mortgage Rate Projections | Simplifying The Market

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.  The other thing that will help you make a decision is talking to the Veenstra Team and learning more about the process.   As a home buyer, there is NO FEE to use the Veenstra Team as your buyer agent.  The home seller pays our REALTOR fee and it is already a part of the advertised home price.  We provide you with the best in class tools and we will represent your best interests and guide you professionally through the process, all at no charge to you.  Call us at 269-350-5514 and we will answer your questions and, if you decide to move forward, we will guide you through the process.  

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Serving Greater Kalamazoo
101 W. Big Beaver Rd. Ste 1400
Troy, MI 48084

Copyright 2019 MichRIC, LLC. All rights reserved.
Information is provided exclusively for consumers’ personal use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS.
Copyright 2019 MichRIC, LLC. All rights reserved.