5 reasons you should buy a home now and 15 reasons you shouldn’t ..

Should I buy Princeton area home now or wait? This is the question home buyers of Princeton Real Estate (which includes Montgomery Township real estate, W. Windsor real estate as well as other surrounding communities) ask me now almost every day.

There is no shortage of answers on the Internet. Some predict future price decline, others say that its better to rent – all reasons for why buying Princeton home for sale would not be a good idea. Many real estate agents would have you believe that buying real estate is always a great idea and a smart investment.

My answer to this question: “I don’t know”, or “It depends”.

Quite honestly, this post has been in a draft mode for a while for this reason. The goal of my blog is to answer important real estate questions for the Princeton home buyers and sellers. “I do not know” or
“it depends” (in the words of my Phoenix colleague Jay Thompson)somehow don’t seem satisfactory. As a New Jersey real estate agent and a Princeton NJ real estate expert, shouldn’t I have a definitive answer? It turns out there is no one size fits all when it comes to buying and selling Princeton NJ area real estate. I have opinion and am happy to share it with a buyer, after I understand more about him/her. The specific answer depends on the buyers views, finances and where and why they are considering buying.

For the Princeton Real Estate blog readers whom I don’t know, I will try to answer the question the best I could. The first priority is to look at some of the reasons you shouldn’t buy now.

5 Reasons you should not buy if you¦

• Believe that NJ real estate prices always go up;
• Do not have emotional tolerance for market declines;
• Know the prices will drop further and when;
• Know that the interest rates will continue decline significantly;
• View the house primarily as an investment, rather then a place to live.

5 More reasons you should not buy if you¦

• Don’t have a substantial (20%) down payment;
• Can’t afford all monthly costs, associated with home ownership;
• Don’t have enough savings, in case you loose all or part of your income;
• Are not certain if you can stay in the house for at least 5 years;
• Do not like chores associated with home ownership.

5 More reasons you should not buy if you¦

• Don’t mind switching homes when the landlord doesn’t renew your lease;
• Don’t mind moving, when the landlord increases the rent;
• Don’t mind less choices of homes available for rent;
• Have the space and location your  family needs;
• Don’t have the space and/or location you need, but are willing to sacrifice.
  

If some or all of the above applies to you, I don’t think you should buy now. “Yes” answers to some of the above, could mean you should not buy at all. Some “yes” answers could mean you should wait. For example, if I knew exactly when the home prices would be at their lowest (which I
don’t), I would for sure wait till then.

5 Reasons you should buy if :

• You want a large choice of houses, which the Princeton rental market does not have;
• You know that long term house leases are rare in Princeton, and you don’t want to move often;
• Stability is important to you because of schools, commute or other reasons;
• You know that home prices have declined in many neighborhoods, and you
  could pay less now for the same house, then several years ago;
• The interest rates are relatively low, but could increase.

The national media and the press would make you believe that somehow, there is a formula or a specific piece of information that could give you the magic answer. I don’t think so. The answer depends on your finances, and your system of beliefs.

If you are still undecided, please call me and I would be happy to review your specific circumstances and offer my opinion.

You can also learn more about Princeton real estate market in these articles.

Princeton NJ real estate Mercer County – Buyer Information

Princeton NJ real estate Mercer County -Seller Information

Princeton Mercer County NJ Real Estate – Secrets to selling your house like an agent.

Princeton Mercer County NJ Real Estate -Secrets To Buying A Home Like A Realtor

Princeton Mercer County NJ Real Estate Sellers- 3 Things That Sell Houses Now

Princeton Mercer County NJ Real Estate – 5 Deadly Mistakes When Selling Your House

Princeton Mercer County NJ Real Estate – Prices of Houses Sold in Princeton -January 2008