Agent's Perspective - Terrified to Own Real Estate

Many people who would like to own real estate have fears that keep them from buying. Acquiring real estate is a huge financial undertaking. It is usually the largest financial commitment that most people make. Often there is a fear of the overwhelming maintenance and repairs issues. Most people don’t understand all of the various aspects of construction. 

Many people are concerned about the possibility of a loss in property value. Neighborhoods can gradually decline, unpleasant or undesirable building can change a neighborhood’s character. A rise in crime rates can affect property values. A decline in the quality of schools will usually impact home values. 

Buyer’s remorse is always a concern. Did you buy the right house? Almost everyone who has purchased a property has experienced at least a little bit of buyer’s remorse. 

Many people worry about being able to afford their mortgage. What if they lose their job? You will usually see that your mortgage payments, taxes and insurance costs exceed the cost of renting in your area. Planning and adhering to a budget is critical with all financial undertakings, and will generally take the worry out of taking on a mortgage. 

Some people fear mortgages that are not constant or fixed over the entire term of the loan. 

Adjustable and hybrid or special needs loans can be very confusing. It is important to either educate yourself on the various types of loans or stick to a 30 year fixed rate traditional mortgage. There are many books and classes available to learn about mortgages. 

Most people are aware of the dramatic housing crisis of 2007-2008 and are afraid that could happen again. Like most things in life that are worth accomplishing, there is risk in everything and that includes buying real estate. The more you educate yourself, and have a plan and budget, the better off you will be. 

Most financial experts agree that buying a home is the single most valuable decision one can make. You cannot have short term thinking. Over time owning real estate is the best, time-tested, way to achieve financial success and stability. 

Prepare yourself, make checklists, educate yourself and know what you can afford. Don’t get yourself in over your head. Don’t be afraid of walking away from a property that you are unsure of, or have reservations about.