ABA Family Legal Guide

Buying and Selling a Home

Introduction to Buying and Selling a Home

Why should I buy a home?

People buy homes for different reasons. Some want to own property because it allows them to reduce their living costs. Others like the income tax benefits of ownership. In certain parts of the country, finding rental property is difficult, so ownership may be the only option. And owning property may allow some people to gain more control over their personal living environment.

A common view of prospective homebuyers is to think of a home solely, or at least primarily, as an investment. This view, however, may be misguided. There is no reason to assume that home prices will always rise. Home prices can fall, sometimes dramatically. And, depending on the home prices in a given area of the country, renting may be far more economical than buying, particularly if the tenant invests the difference between the rental payment and the amount that would have been paid under a mortgage, as well as repairs, taxes, and insurance.

The decision to buy a home is not just an investment decision, but it is wise to give it at least the same care as you would give to any major investment.