How to Get over your Fear of Buying a Home
Despite the dismal housing market, prospective buyers are still out there looking at homes. There are definitely a lot of choices available on the market today and it is unlikely that interest rates are going to drop much lower than what they are now. With homes sitting on the market for months at a time, most sellers today are willing to negotiate. Even so, many buyers continue to hang back out of concern. The confidence of home builders has even dropped in light of the struggling economy on the rash of inexpensive foreclosed properties that are now on the market.
It would seem the main reason that more prospective buyers are not taking advantage of the many opportunities and deals available today is that they simply do not want to be the guy that purchased a home right before the market dropped even lower. Basically, many buyers are holding back waiting to see if the market really has hit the bottom before they make a move. No one wants to be the person that paid too much when they could have saved money if they had just been patient and waited a bit longer.
There are also other contributing factors that have held many buyers back from taking the plunge. They include the inability to come up with a down payment or preferring to hold onto their savings and invest in somewhere else. Despite the way home prices have dropped in the last few years, many buyers are still having difficulty in obtaining the cash they need for a down payment. Simply put, many people today are wary of putting their savings into an investment that just might not be that safe. Buyers are more than well aware that home values have continued to depreciate and they are afraid of investing in the purchase of a home only to find a couple of years down the road that their home is no longer worth what they paid for it.
There is also a strong fear of unemployment that is continuing to hold back many buyers. With the jobs creation rate remaining low and fear of layoffs still looming, prospective buyers can hardly be blamed for being concerned about making such a large investment.
Ultimately, it all comes down to uncertainty. Buyers today are just too uncertain about too many things to make the next move and purchase a home. Consumers generally do not make financial decisions, especially large ones, when they feel that sense of uncertainty.
If you have found yourself riding the fence and debating about whether you should buy now or wait to see whether the economy will turn around or even whether prices might drop a bit lower, it is important to consider your motivation for buying a home. If you are planning to purchase a home that you will live in for many years into the future, you have to ask yourself whether it ultimately matters if you pay a bit more for it than you would have it you wait six months or a year. At the current time with interest rates at an all time low, there is a very good chance that you might get a better deal if you move now.
Of course, on the other hand, if you think you might relocate or need to sell the home sometime within the next three years, you might very well be right in hesitating to buy right now.
Either way it is a good idea to consider the stability of your employment situation. While no one can really predict the future, take into consideration what is going on in your industry and in your local job market. Overall, things may seem dismal on the national unemployment market, but there are still pockets of the country that are thriving. If you happen to live in one of those areas or you are employed in an industry that is actually booming, you might find that now really is the best time to go ahead and make a home purchase so that you can take advantage of low interest rates and even lower home prices. If you decide to wait six months to year you may find that those good deals are gone.
In the end, getting over your fear of buying a home really comes down to evaluating your own personal situation and deciding whether it makes sense for you personally to purchase a home now or wait a bit and see what happens down the road.