10 Signs You’re Not Ready to Buy a Home (And How to Get Ready)
“Not all buyers are renters, and not all renters are buyers.” - Jen Corso
Introduction:
Buying a home is one of the biggest commitments of your life. It’s a big decision to make. Being a homeowner is a major investment and requires careful planning. It’s also a financial responsibility. Buying a home is a commitment to be able to stay in one location for a long time. Many real estate agents have had a buyer or two that keeps on looking and looking at homes without buying. It wastes everyone’s time including the Listing Agents and the seller's time. There are signs to catch on before showing the 50th home. I’ve had my share of buyers that couldn’t commit and here are some signs.
Wondering if you’re ready to buy a home?
You may not be ready if you have unstable income, high debt, little savings, or uncertainty about your long-term plans. Understanding these signs can help you avoid financial stress and prepare for successful homeownership.
With that said, here are 10 reasons (1 bonus) why you may not be ready to buy a home today! 👊
1. Slow drag on financials
The first thing as a real estate agent, you should talk to the buyer’s loan officer. If the buyer dragged their feet getting documents and didn’t respect the timeline, most likely the buyer isn’t in a rush or committed to finding a home. I’ve also found that buyers that make excuses for not having or getting documents can be a sign.
2. Complaining
Complaining about the home is a cause for concern. I know everyone complains. Everyone has a bad day but to complain on every showing, in every home can become very negative and an earful. The buyers I’ve had literally complain about everything about the home. They critique it down to the bones. They will complain that there is a patch of grass that is not a healthy dark green. I’ve had buyers complain from light fixture not being their style to the color of paint. I have to let buyers know that they will never find a home that is 100% perfect. I built a home to how I wanted, and it wasn’t 100% perfect. Most of the complaints are cosmetic not about safety or structural.
3. Quitting your job
An eye opener sign is complaining or talking about quitting your job. If you plan on quitting your job, how are you supposed to get a mortgage and how will you pay the mortgage? I’ve had this situation happen a few times. They complain about their pay and complain about their boss. It’s extremely important to have an income source to pay your bills. I understand having a career change or changing companies but consider planning that out so you will have stable income to pay the mortgage.
4. Selling your home that you are buying soon
Another sign is that they are already talking about selling the home within a year or two without even making an offer. A true committed buyer does not want to do all the work to buy and then sell a year later to move somewhere else. This seems stressful and a waste of money. Just think about all the time that would be spent. Although property values usually increase but there’s no guarantee. There are also capital gain tax issues if you don’t keep your home for a certain amount of years, usually twos years, before selling.
What about the cost of selling the home? If you have a realtor, then you are paying the commission. I’ve had a potential seller that wanted to sell their home. They owed about the same amount of what the value was. After closing costs, realtor cost and having to pay off their mortgage, they’d have to come out of pocket. And where would they move to? How will they pay for it? On average is takes at least five years to have a reasonable chance of breaking even after purchasing. Your mortgage in the first few years pays mostly the interest, not the principal.
It can also be harder to sell so quickly because potential buyers may think that there are issues with the home. This can be a negative perception that could lead to fewer or low-ball offers. Unless there’s a really good reason like job transfer, then it’s not a good idea to sell the home in the first two years after purchasing.
5. Picking out one home at a time
Another sign I’ve noticed is that buyers find one home to look at and not multiples. They want the realtor to take time out of their day just to see one home, so they can pick it apart. It’s like a hobby for them. I enjoy looking at homes and talking with my clients, but this can be a real time waster. I’ve had a buyer that would only want to see one home at a time because he was so picky. I’d try to find some other homes in the area to look at and he would tell me know because the neighbors were to close or not enough yard. I knew he wasn’t ready to buy. I was about to have the conversation if he was really committed to looking for a new home. I didn’t have to have the conversation because I found out on Facebook that he moved out of state and decided to rent. He never called me to let me know that I he wasn’t planning on buying anymore.
Some of buyers didn’t even know what type of home they wanted. We’d start with a single-family home but then they’d change their mind because they didn’t want to maintain the outside of the home including cutting the grass, so we’d look at townhomes. Then they’d realize that the neighbors were too close and wanted to go back to looking at single family homes.
6. Communication
The communication between a real estate agent and their clients is very important. Even if the buyer wants to take a break at looking at homes or the real estate agent is going on vacation, it’s important to communicate even in a text. I’ve had buyers that just stopped texting me to see homes. I know the signs, so I knew that they didn’t want to see homes. I have a divorcee that wanted to sell her home that she had with her ex-husband. We saw homes and she finally admitted to me that she wanted to see what was out there and wasn’t ready to move on. It’s fine with me as long as you tell me and don’t keep me hanging. It’s easier to just be open and honest. Real estate agents are here to guide and help make a decision if you plan on buying or selling.
7. Debt
You have a lot of debt and struggling to keep up with it, it may not be time to buy a home. When buying a home, the less debt you have the better you will be off being able to maintain a mortgage and continuing the upkeep including utilities on the home. Having car payments, credit card debt, student loans, or medical bills can be added stress and payment to your mortgage payment. If you have more debt than income, then buying a home is not an option. A debt-to-income ratio should be 36% of less to be manageable. You may think about paying off some debt before buying a home.
If you can’t afford a down payment, this could be another sign that you’re not ready to buy. Even ideally, you should put down 20% but there are other loan programs that you can put down even as low at 3%. If you are a veteran, then you have a 0% down payment.
8. Keep buying stupid crap on credit
If your credit score is a big deal when buying a home. Your credit score depends on if you will paying a higher interest rate. It even depends on if you even can get a mortgage. If you have a history of late or missed payments, your credit score will take a serious hit. Bankruptcies, judgements, tax liens and any other type of liens could bring your credit score down plus if it just happened recently, you may not be able to get a loan. Your credit will show all the liens or creditors such as a mortgage or credit cards along with the balance and the amount of time it’s been open. Your credit score will also reflect if you any lates. There are 3 credit scores from 3 separate bureaus and lenders take the middle score to preapprove you for a mortgage.
I was selling a home that I had purchased to rehab then sell. The market was down so I decided to rent the home. But I only wanted someone in the home that would eventually buy it. The man who rented did not have a credit score because he paid everything in cash. He had to get a credit card, utilities, and cell phone to use for as credit. Eventually, he started building up his credit score and about a year and a half he purchased the home from me.
9. No backup funds
You should always have backup funds. Living paycheck to paycheck is not a good time to buy a home. Complaining about money or coming out of pocket for the down payment, earnest money, inspection, or appraisal is just a part of buying a home. If your furnace goes out or your outdated roof needs to be replaced, where will the money come from? What if you lose your job? What if you get sick? This can add stress and a financial burden on homeowners. You should have a positive cash flow that you can add money into savings.
10. Mentally not ready
Owning a home comes with responsibility. You may not mentally be prepared for it. Not only do you have to keep up with the mortgage, but you also have to pay the real estate taxes, homeowners' insurance, utilities, and maintenance on your home. Some buyer's lifestyles may not work if you have to travel a lot or you just are too lazy to mow the lawn.
BONUS:
11. Future plans include spending money
If you plan on spending a lot of money in the near future, like a wedding, school, or a dream vacation, you may want to hold off. Even having a baby can become expensive and possible loss of income if the woman stays home to raise the children. You need to be able to afford your home and your lifestyle.
Here's potential buyer checklist:
Here is a quick checklist to get you started to see if you are ready to buy a home. Remember not everyone needs to buy a home. Depending if you travel a lot on your job or enjoy seeing different places every few years. Some people don't even want to be responsible for a home like repairs and mowing the lawn. If there are a lot more checks, then maybe take a pause from buying a home. No biggie. Take your time. It's a huge decision to make.
Do you travel a lot for your job?
Do you get anxiety just thinking about all the things you have to do to a home if you buy it?
Do you have a hard time saving money and keeping up with bills?
Do you have commitment issues? Job or personal.
Do you enjoy spending money on food and entertainment than saving it for a rainy day?
After you buy a home, do you plan on selling it within the first 2 years?
Do you jump from job to job? Or do you plan on quitting your job and finding yourself?
When you look online or visit a home, you complain about everything including the paint color?
Do you have problems filing your taxes every year? Go through bankruptcy every other year?
Do you talk about having acres and acres of land at age 40 and you still live with your mom?
Do you have 3-6 months of savings?
Is your job and income stable?
Do you plan on staying in the area for 3+ years?
Is your debt manageable?
Are you comfortable with maintenance cost?
✔️ If you checked more than 3, it may be wise to wait.
👉Check out the Buyer's Guide - 5 things to consider when choosing a home as a first-time homebuyer.
If you're considering buying in Batavia, Geneva, St. Charles, Aurora, Fox Valley area, Kendall, DuPage, or Will Counties, knowing when you're truly ready can save you thousands and prevent buyer’s remorse. A local expert can help you create a plan that fits your timeline and finances.
Not sure if you’re ready? Let’s create a plan.
I help buyers in Batavia and surrounding areas prepare for homeownership with confidence.
📩 Contact me here: www.jencorso.com
The Author is Jennifer Corso - Realtor. This was created all by her own brain cells. This was not created in Chat GPT or any AI. This was created for informational purposes only. This is only opinions and stories obtained by Jennifer's own experiences.