Every since I began my real estate career about ten years ago, I kept hearing, “Now is the time to buy a house!”  It didn’t matter if the market was up, down or sideways.  It was always time to buy.

• Home prices were low — time to buy a house
• Home rices were rising – “don’t get priced out” – time to buy a house
• Mortgage interest rates were coming down – time to buy a house
• Mortgage interest rates were rising – “don’t get caught with a high interest rate” – time to buy a house
• New homes being built – “you’re home value may go up” – time to buy a house
• Real Estate always goes up – time to buy a house
• Your friend, family member or co-worker’s house just zoomed up in value by 25% – time to buy a house.

…and many, many more.  The point is, if you listen to the traditional real estate professionals or the government, it’s always time to buy.

So, here are some reasons it may not be time to buy a house.

Reason #1 — You Can’t Afford It

This is a great reason not to buy a house. Believe it or not, there are lots and lots of people who just, flat out, don’t make enough money or have too much other debt to be able to make a mortgage payment month after month.  The mortgage payment isn’t the only thing.  The utilities (gas, electric, oil, phone, etc.) all are monthly bills that must be paid.  It’s no fun sitting in your house in the dark.  You also need some of life’s accessories like furniture, cookware, your TV and computer. Speaking of your TV and computer that also means a digital connection through cable, satellite or fiber optic and the Internet connection (so you can continue to read this blog).  Don’t forget food and medical care and clothing.

Reason #2 — You Can’t Get A Mortgage

This was almost my Reason #1.  Here’s a true fact: not everyone qualifies for a mortgage at any payment level.  Many people can’t qualify for a mortgage at the level they need to buy a house in the neighborhood they want to live in. Lots of people have more debt (credit cards, student loans, car payments, etc.) than they can handle without a mortgage.  Banks understand this now.  In the olden day (2000-2006) banks didn’t care.  Just sign here.  Now, that is not the case.  You almost have to have the secret password into Fort Knox to be able to qualify for a mortgage.  If you can’t get one or you can’t get one big enough for the kind of house you want in the neighborhood you like, you shouldn’t buy a house.

Reason #3 — You’re Not The Handyman Type

Look, there’s no law that says you have to be a general contractor to own a home.  In fact, I’m not really much of a handyman myself.  But it will soon become evident that unless you can learn to fix some things around the house you’re going to be paying through the nose for contractors to come in and do it for you.  This means little things like minor plumbing issues or electrical issues.  It means you probably have to get a lawn mower and cut the grass. You may have to learn how to paint (note: it’s not as easy as it looks).  There is all kinds of upkeep that a house needs and when you own your own home it means there is no landlord to call to fix things.  You have to do it yourself or pay someone to do it for you. There is also the smallish detail that a lot of homes on the market today are in “short sale” or bank-owned status and that means you’ll be buying the house in “as is” condition.  So there may be a ton of “handyman” type work right out of the gate.

Reason #4 — You Know You’ll Be Moving Within 5 Years Or Less

Buying a house for a short period of time is a big mistake.  Ask anyone who bought a home in 2002 or later.

I was talking to a potential client recently about selling their home in order to move up to a larger home in order to accommodate a family member who needed to move in.  This person was current on their mortgage and was in no danger of default. They had good income and low debt and great credit scores.  The only problem was that the value of their home had not gone up enough to be able to cover the cost of selling the house and paying off their existing mortgage. They were stuck.  Chances are good that in a few more years as they continue to pay down their mortgage and prices stabilize they’ll be able to sell their home and move to a larger one without any problem.  It’s just that they can’t do it right now.  It’s too soon.

So, if you think there is a chance that you may need to move because of a job relocation (for example, if you’re in the military) or your family is growing or whatever, it may be better to hold off.  Buying a home is a long term deal.

Reason #5 — You’re Not Certain

This is kind of tied into Reason #4. If you’re not sure you want to buy a house, don’t buy a house!

• If you’re not sure if prices will continue to go down or if mortgage interest rates will contiue to go down or you’re waiting to see if that nice Colonial over in Silver Spring you’ve been keeping you eye on goes on the market than don’t buy a  house. In fact, I would go so far as to say that if you have a chance to renew your lease for another year to keep your rent payments low, do it.  If you’re living with family and they’re willing to put up with you for another year, do it.  This is not a market that you “stick your toe in the water” to see if it’s OK to get wet. Things change and if the past year (can you believe it’s only been a year) has taught us anything is that things change and they could change rapidly.

• If you like mortgage rates for 30 year fixed-rate mortgages under 5% this is the time to jump in.  If you think they’ll go down to 4% and you want wait….wait.  If you think a MdMansion that used to sell for $500,000 and is now selling for $300,000 is a good deal (with a 30-year ficed rate mortgage under 5%) than this is the time to jump in.  If you think housing prices will decline further and you want to wait….wait.

Owning A Home Is Not For Everybody

My point is that owning a home is not for everybody.  There are lots of reasons to continue to rent or hang out with the family.  Heck, I hear stories all the time about people who have never owned real estate in their entire lives and lived very productive, happy lives.  Owning a home is a big responsibility and is a lot of work and expense over the years.

Sure there are also lots of good reasons to own a home.  However, “now is the time to buy a house” is not one of them.  It is never the “time to buy a house” unless you’re ready and you know what you’re getting into.