Why Now May Not Be the Right Time for You to Buy

By Raymond Stoklosa · August 20th, 2009

Buy a Home in San Mateo

You’re a Real Estate Agent…Surely You Don’t Mean That?

I absolutely do. Not all people should own a home. For almost all of us there are points in our lives where home ownership is not appropriate. Think you may be one of those people?

Video: Is 2009 the Year to Buy San Mateo Real Estate?

Why Now May Not Be the Right Time for You to Buy a Home in San Mateo

Here are some good reasons why now may NOT be the right time to buy a San Mateo County home.

Your job is in jeopardy. Buying a home in San Mateo when you think you may lose your job is never a good idea.
Your career path may dramatically change course. If you are planning to move industries or there is a possibility your company may relocate you soon, buying a home in San Mateo may not be the best option for you.
You plan to own a home in San Mateo for less than 5 years. Real estate is a long term, illiquid asset. Time makes money in real estate, not timing. When you buy a home in San Mateo, you should plan to stay in it for at least 5 years. Remember, there are in and out costs such as closing costs, brokerage commissions and the costs of obtaining a new loan, associated with a move.
You don’t have at least 3.5% of the purchase price available for down payment. Down payments are one of those guidelines lenders have tightened since the subprime mortgage crisis. They want to see buyers have a little skin in the game, hoping they won’t be as apt to default on their mortgage loan. They will go down to as low as 3.5% with the FHA program.
You can’t afford the mortgage payments. In this area, most mortgage payments are substantially higher than rent, so there can be some sticker shock involved. Speak to an experienced lender before you start looking for a home in San Mateo to find out how much a San Mateo home will really cost you.
You have owned your current San Mateo home for less than 2 years. Remember, real estate is a long term, illiquid asset. When determining your next move, have your Real estate agent provide you a seller’s net sheet so you can see what you will walk away with after your loan has been paid off and the in and out costs have been paid.
You own a home in a neighborhood where home values are falling significantly and foreclosures are pervasive. Even though your home is not in foreclosure, the foreclosures in your neighborhood will push the value of your home down. Talk to a Realtor in your area who can help interpret the market to determine whether now is or is not the best time for you to sell your San Mateo home.

Are These the Only Reasons One Shouldn’t Buy a Home in San Mateo?

Definitely not. Buying a home is a personal decision everyone makes. Some people are not comfortable owning, nor will they ever be comfortable owning a home in San Mateo County, no matter how much they make. You don’t have to fall under one of these seven categories. You just have to choose not to become a homeowner. And that is ok!

None of These Apply to You?

You may be in a pretty good spot to take advantage of the $8,000 tax credit, low San Mateo mortgage rates and increasing affordability in San Mateo County. If you don’t foresee any of these things happening and you want to buy a home in San Mateo, check out our post on Why Now May Be the Right Time for You to Buy a Home in San Mateo.

What Can You Afford?

We’d recommend you check out these two blog posts from our Co-Author, Chris Williamson: What Can I Afford? and What Can I Afford with FHA?. These two posts provide a nice chart to give you an idea of how much you can afford based on your gross income. Then, call or email him to schedule an appointment today. He’ll sit down with you, explain your options and determine what you can afford.

Ready to Begin Your San Mateo Home Search?

Learn more about our unique Buyer Representation Program. Call or email us today to set up a personal consultation to discuss how we can help put you on the path to home ownership.

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