Every year, thousands of people enter the real estate market and buy a home, whether it’s the first home they’ve ever purchased or the second home they’ve considered buying for years. For every one person that makes this commitment, however, there are several that still remain on the fence. According to various industry experts, one of the main reasons these potential homebuyers refrain from buying is fear. Fortunately, there are many ways to overcome each home buying fear and make the purchase you’ve always wanted to make. Here’s a list of today’s most common real estate fears and how to overcome them:
- Loss in property value: Yes, homes can decline in value, and not just because a natural disaster hits. Non-ideal developments (landfill, prison, etc.) could be built nearby, new homes could make older ones less appealing, or a poor economy could keep home values temporarily down. No matter the situation, there are almost always ways to minimize or even avoid loss in property value. It’s always a good idea to start by selecting a neighborhood with low crime and high-quality schools. You can gather more information about the surrounding area by getting in touch with the city government and inquiring about future development plans. Once you own the home and are looking to sell, consider making a few low-cost improvements to your home. You could even score a loan to cover these expenses! Check out the Introduction to Renovation Loans to see what’s covered with a renovation loan.
- High home maintenance costs: Buying a home is much different than renting an apartment, as you are now responsible for covering all of the repairs and maintenance expenses yourself—but don’t worry! There are many ways to minimize and prepare for these costs. The first suggestion is to simply get your home inspected prior to purchasing. This will highlight any necessary repairs that could be financed by the home seller, thus saving you tons of time and money! Another easy solution is to buy a home that has either been well maintained or recently updated. Of course, any home may have undetected defects. If you come across one of these defects, the trick to keeping costs down is fixing the problem as soon as possible. Don’t let small problems become huge repair projects.
- Buyer’s remorse: If you’re concerned with buying the wrong house, then you have not spent enough time in the planning stage of your home buying process. This stage is the most important because it allows you to specify what exactly you are looking for in a home. It helps if you make a list ranking the home features you’re looking for from “must have” to “would be nice”. This will help you narrow down the homes you find within your price range—and remember, this process takes time. Don’t settle for a home unless it fulfills your “must have” list.
- Inability to afford monthly mortgage payments: Many potential homebuyers harbor this fear of an inability to meet mortgage payment deadlines each month before discussing their mortgage options with a lender. This is a big mistake, as oftentimes consumers miscalculate what their mortgage payment could be if they buy a home within their price range. If you’ve talked to your lender and still have this fear, consider setting up a budget to determine current expenses and how much you could set aside each month to build an emergency fund. As you develop your savings, you’ll surely build more confidence in your ability to afford a mortgage.
Whichever common fear is holding you back from buying a home, it’s important to remember that there is almost always a way to overcome it. Make sure you have read up on the subject you’re hesitant about and educate yourself about how the mortgage process works. For more information about overcoming today’s most common real estate fears, or to learn more about surmounting them, contact one of our mortgage specialists today.
