We all have different reasons for buying a house. Some have to do with relocation, economics, familia status. Others just want to stop paying a landlord or catch the American dream of home ownership. But with the economy and housing market screeching to a halt the last two years, some buyers are worried that housing prices are going to keep falling, and they are hesitant to take the next step. What ever the reason, buyers should not fear the current market, nor second guess themselves when it comes time to purchase a new home.
I recently had a buyer tell me that they wanted to make a low offer on a home because they were worried about losing the “equity” once they bought it. They thought that if they got the home for less, they would be “ahead” of the market and wouldn’t lose any down payment equity if the value of the home fell in the future. Even though the home was priced with the current market, they felt the owner should pay for their risk. I have to say that this is completely the wrong reason to buy a house, or at least the wrong reason to make a low ball offer.
Buying a home should be a long term investment. Too many buyers today look at a home as a commodity, or something that they buy low and sell high. When they do, they lose the true value of a home. A stable purchase that will be there for them over the years and provide more than just a roof over their heads. If you are planning on purchasing a home, please remember to look at the big, long picture. Don’t worry about what the value of your home is going to be in a year. Don’t worry about what it will be worth in five years. Simply enjoy your home as much as possible and let the chips fall where they may. No one can control the housing market, not even the government, so buy a home because you love it, not because you are worried what the future may bring.