Century 21 – Blackwell & Co.

Top 3 Signs It's Time To Buy A New Home

August 7, 2023

Deciding when to buy a new a new home is a significant financial and lifestyle choice. Being a homeowner is symbolic itself. Homeownership has long been classified as an “American Dream”, representing stability, financial achievement, and having the opportunities to contribute to your community. But what do you do when you find yourself in a different situation, or circumstance, where you may need to buy a new home? You are already living the “American Dream”… working hard, paying for your home, giving back to your community in various ways. If you have had thoughts about buying a new home, but still have doubts, then continue reading to find out the top signs it is time to buy a new home!

Change In Life Circumstances

Major life changes can trigger the need for a new home. Some of these challenges might include:

  • Getting married.
  • Having children.
  • A change in employment resulting in relocation.
  • Downsizing if you have children that have moved out.

If your home no longer suits your evolving lifestyle needs, then it might be a good idea to start looking to purchase a new home. 

 

Financial Readiness

Buying a home is a significant financial commitment. It is important to evaluate your financial situation and determine if you are able to purchase another home. This includes having a stable income, a good credit score, down payment, and the ability to handle ongoing homeownership costs such as:

  •  Mortgage Payments
  • Property Taxes
  • Insurance
  • Maintenance
 

 Will you need to sell your home first before buying another one? Do you have money saved up for a down payment on your next purchase? Will you use the equity from your current home, towards buying a new home? There are many questions that you will need to answer. You might also be ready to buy a new home if: you have a good credit score, you are comfortable managing your debt, and you have money saved and set aside for down payment and home maintenance. I recommend speaking with a local, experienced mortgage broker. Loan officers at a mortgage brokerage are highly trained individuals and can help you determine what loan (if one is even needed), would be best for your situation. I also recommend getting in touch with an experienced local REALTOR, as that person can guide you through the process of selling your current home and buying another one at the same time. 

Market Conditions

The real estate market can have a significant impact on your decision to buy a new home. If you are wondering if it is time to buy a new home, you can research your area’s current housing market. Favorable market conditions might include lower interest rates, a buyer’s market with more homes available and potentially lower priced homes, or a location where property values are expected to rise in the future. It is very important to do your research and understand your local housing market trends before making any decisions.  Understanding the buying process will help you to feel informed and in control of the experience. It is always the right time to contact a local real estate agent, and discuss your plans. An experienced agent will help you with your journey and provide knowledge about the local housing market. 

 

Buying a home is a serious life-changing decision. Before you decide to buy a new home, make sure you can financially afford to do so. Be sure to do your research and stay up to date on your local housing market trends. If you have experienced a major life changing event, or have hit a major milestone in your life, then that too, may be a sign that you are ready to buy a new home.