4 ways to know if you’re ready to buy a home

4 ways to know if you’re ready to buy a home


4 ways to know if you're ready to buy a home

Courtesy: AP Photo/Phelan M. Ebenhack

(COLORADO) — People in Colorado, as in the rest of the nation, are currently facing an unpredictable real estate market. Home prices are high, and experts say that’s unlikely to change soon—though more inventory is supposed to become available, and interest rates are expected to come down.

According to the Census Bureau’s Q1 report for 2024, 65.6% of Americans own a home. For the other 34%, there are (at least) 4 important things to consider before buying.

First, do you have enough money for a down payment? 10-20% is standard for a down payment, and this can be a challenge for many, especially first-time home buyers.

Second, are you planning to be in your home for at least five years? The process of buying or selling a home comes with extra costs: closing costs, paying your agent, and sometimes making needed repairs. If you haven’t stayed in your house long enough to build equity, you may wind up losing money when you sell.

Third, does your home have appreciation potential? Check out the real estate market in the area where you plan to buy, as some neighborhoods appreciate more than others. You don’t want to get stuck in a house that is unlikely to appreciate, as this will make resale more difficult.

Finally, do you have savings, in case of something unexpected? If your water heater goes out, or there’s a problem with the pipes, you need a little extra cash saved up to address those issues. When it comes to buying a home, planning for the unexpected is wise.


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