An increasing number of homebuyers are coming into the market. However, along with that trend, is an increasing number of financial regrets due to mistakes such as:
- considering that renting may still be a viable financial choice in some situations; for example, if you may be moving due to a job or other circumstances.
- with rising housing prices and higher mortgage rates, some buyers may not be competitive when bidding on a property.
- other debts (such as a high car loan) may limit the monthly payment a person can afford.
- putting too much faith in online property prices, which can give a false sense of true home values.
- skipping the home inspection can result in not being aware of subtle home defects.
- unrealistic expectations of the future appreciation of the home.
For additional information on mistakes made by homebuyers go to:
http://www.cnbc.com/id/101837611
Teaching Suggestions
- Have students research suggestions for avoiding home buying mistakes.
- Ask students create an in-class presentation with suggestions for avoiding home buying mistakes.
Discussion Questions
- What actions might be taken to avoid these home buying mistakes?
- Describe other difficult situations that a person might encounter in process of buying a home.
Melissa Hart
Focus on Personal Finance, 7e 