When is it time to buy?

Most would anticipate a Realtor to say, "Right now." We all know that cannot possibly be a true answer. The truth is, there are many indicators that real estate in Coeur d'Alene and surrounding areas - as well as around the country - is anticipated to increase in price for the near future. That does not mean the time is right for you to buy.

With low, low interest rates and low required down payments for homes, many are excited about owning their first home. Even though down payments and interest rates are low, credit requirements are high so if you do not have a good credit score, now is not your time.

Due to low interest rates you may find that a house payment would be less than what you are currently paying for rent. That alone does not make it a good time to buy. Be honest with yourself as you assess your situation. Are you satisfied with your employment and do you intend to remain in that occupation for an extended period? Do you have predictable, stable income for the foreseeable future? Is there anything about your life that may predicate you moving in the near future?

If your answers make you uncertain about the stability of your life at this moment it may be best for you to wait before making the leap to home ownership. If you are renting, you are relatively mobile and can usually leave with short notice. Even if you are tied to a lease, with Kootenai County vacancies reported a 1.8 percent in the fourth quarter of last year, your landlord may allow you to break your lease without penalty to get a higher rent from a new tenant.

You should also investigate whether or not the homes you need are in good supply. Many looking to get into their own home on a budget are finding it difficult to find a suitable home. A suitable home should be defined as one that suits your lifestyle as well as your budget. Before giving your landlord notice that you are thinking of moving, search the Coeur d'Alene Association of Realtors website to see if homes are available that suit your needs.

Undoubtedly your first search parameter will be price but there is much more to consider. How far will you have to commute from homes in your price range and what will that commute cost per year? Just because your house payment may be lower than your rent that does not necessarily mean you will have more money to spend. Things go wrong. Things that your landlord now has to fix will be your responsibility when you own the building where the problems arise.

Every night on the evening news we hear of maladies that cost homeowners money. Recently we have seen trees uprooted and falling on buildings. Reports of household fires are common and this time of year in North Idaho, flooding can penetrate houses in some areas. Of course all of these should be covered by insurance but those insurance policies have deductible amounts. The higher your deductible, the lower your premiums so many will opt for a lower premium believing they are immune to calamity.

So, from the money you are likely to save from rent, build a contingency savings account to cover unforeseen events. That way, when the furnace quits working, the refrigerator fails or the dishwasher breaks, you will have funds set aside to address these issues.

If you are confident that you have considered all the contingencies then now may be the time for you to buy. Projections are for continued appreciation of real estate so it could be the best investment you could make.

Trust an expert...call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.