Finance
Ask an Advisor: ABOUT REAL ESTATE By Dan Lash, CFP® AIF®
Is now a good time to buy a home? I think a better question to ask is “Is it a good time in my life to buy a house?” buying a home is a huge investment and it is important to not rush into the decision. Interest rates are very low right now which is great for home buyers, but there are other things to consider. In the DC Metro area the demand for homes has skyrocketed and the supply has not kept up. Sellers are listing their homes priced on the high end and/or buyers are getting in bidding wars and end up paying more than the asking price. This frenzy could stick the winning bidder with a property that may have limited appreciation (or even depreciate) in the future. Another concerning practice I have seen is buyers agreeing to forgo a home inspection in order to create a compelling offer. Waving a home inspection is a gamble, you are buying what
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is probably the most expensive asset of your life and you want to make sure that you are not saddling yourself with costly repairs. Make sure you know what your budget is before starting the home buying process and don’t let a bidding war push you past it. Also, be prepared to stay in the home at least five years because it is possible that we will see the market slow down and you will not be able to recoup your purchase price.
We are looking to purchase a new home—how big of a mortgage should we get? While a mortgage can be an excellent savings vehicle while you are working, borrowing as much as you qualify to borrow may not be a wise financial decision. When you’re looking to buy real estate in Northern Virginia, it’s especially easy to feel the need to spend more than you can realistiVIVARESTON.COM
