Homebuyers

Should I Buy a Home? How to Know If Homeownership is Right for You

A home is likely one of the largest purchases you’ll ever make. That’s why it’s not exactly surprising the homebuying process can be a stressful, confusing, and sometimes, an emotional roller coaster. 

If you find a property you like but are unsure of whether it’s a good fit for your budget, lifestyle, and goals, you’re not alone. 

“It’s completely normal to feel jitters about buying a home,” said Lisa Patterson. She’s a real estate agent at Daniel Ravenel Sotheby’s International Realty in Charleston, S.C. “Even if you’re excited, there’s bound to be a moment where you think, ‘Am I doing the right thing?’”

This doesn’t mean you shouldn’t go ahead with the purchase. Instead, it shows you understand the weight of the decision and need to figure out if it’s the right move for you. 

Before you sign on the dotted line, follow these steps to help determine whether homeownership is the right fit.

Decide why you’re buying a home in the first place

When you’re trying to figure out whether you should buy or rent a home, it’s important to get clear on your goals.   

For example, you might want to build equity instead of paying rent, provide more space for a growing family, or achieve homeownership. Or perhaps, you’re simply looking for more stability as the bulk of a 30-year, fixed-rate mortgage payment won’t change over time. (Home insurance, property taxes, and homeowner association fees can, however, go up and down.)

Focus on exactly why you’re considering purchasing a home in the first place. 

“If you can’t pinpoint your why, you may be buying a home due to someone else’s cues rather than your own genuine desires,” said Devyn Kern, a real estate advisor at Kantha Team at SERHANT in New York City. “That’s never a good idea.”

Can you afford the mortgage payment and other homeownership costs?

Homebuyers need to be careful that they can afford the monthly mortgage payments and the other costs of homeownership. You don’t want to overextend yourself and wind up “house poor.” 

A mortgage payment is only one piece of the cost of owning a home. Property taxes can, and often do, rise. Homeowner’s insurance premiums often go up. Maintenance is not optional. Repairs do not wait until it is convenient.

And homebuyers may want to leave themselves with enough of a financial cushion to cover emergencies and other unexpected expenses.

“Many buyers underestimate affordability because they focus on what they are approved to borrow instead of what they are truly comfortable paying every month,” Patterson said. 

There’s a big difference between being approved for a mortgage payment and being able to live comfortably with that payment. 

“You should still have room in your budget for maintenance, repairs, insurance, taxes, emergencies, and life in general,” added Patterson.

Be honest about whether you’re ready for the responsibility of homeownership

Owning a home is exciting, but it also comes with a lot of responsibility. 

When you’re a renter, you can call the landlord when something breaks because you often don’t have to pay for it. Owning, on the other hand, means you’re the landlord. 

The roof, heating and cooling system, plumbing, yard, gutters, windows, pest control, and routine maintenance are all up to you unless your homeowner’s association covers some of those costs. So, you need to be prepared to mow the lawn, replace the dishwasher if it stops working, and shovel the snow.

“Once you’re the homeowner, you have to source the vendor for the problem, schedule a time for them to come, and pay for the service,” said Abigail Godfrey, a New York City-based real estate agent at Coldwell Banker Warburg. “This adds a new layer of financial responsibility and eliminates a major convenience factor.”

That doesn’t mean homeownership is scary. It just means you should approach it with realistic expectations.

Remember, a well-maintained home can be a wonderful asset, but deferred maintenance can become very expensive very quickly.

Ask yourself if you really love the home you plan to buy

Be honest with yourself about whether you love the home and if it meets your current and future needs. Of course, no home is perfect, but the right one should make sense for the way you live now and for where your life may be heading. 

“Think about things like bedroom count, layout, work-from-home needs, outdoor space, parking, stairs, commute, pets, family changes, and resale value,” said Patterson.

Consider if it’s large enough for your family, what your commute will be like, and if it’s a place you will be happy living in for at least the next few years while you build equity.

You don’t need to predict the next 20 years perfectly, but you do need to decide whether the home gives you enough flexibility.

Often, you’ll get a gut feeling when you walk into the right home. 

“When you walk into the right home, especially if you’ve toured many properties throughout your search, you just know,” said Godfrey. “Searching for a home to buy is similar to searching for a partner. There are many fish in the sea, but once you know, you know.”