Single-Woman Homebuyers: What to Consider
An unprecedented number of single women are buying a home on their own. Here's how to make it the best decision of your life.
Record numbers of single women are buying homes on their own at last count, they made up around 22% of all homebuyers. But this group often has special concerns and fears about buying property.
For example, Diane, a graphic designer and yoga teacher in California, had wanted to buy a house for about five years. But she kept thinking the time wasn't quite right perhaps she should wait until she fell in love or started earning more.
"Finally," Diane says, "I got to realize, I can't wait forever for the right partner. And my income will always be irregular. I set myself the goal of owning a house before my 40th birthday."
Similarly, Jennifer, a 32-year old college instructor in Massachusetts, says, "I didn't want to live with roommates anymore, and I really wanted a space that reflected who I was. I think the major stressor was always financial, just being sure that I could make ends meet."
If you're a woman considering buying a home on your own, Diane and Jennifer's mix of eagerness and hesitation may sound familiar. Before buying, many women ask questions like:
- Will I be able to afford the mortgage and other costs on my own?
- Will I feel safe there?
- What kind of space will suit my present lifestyle?
- What if I get into a long-term relationship and have to move?
- How do I begin?
Here's how Diane, Jennifer, and other women have answered the questions above, and become savvy homebuyers as you can, too.
Be Realistic About What You Can Afford
There's no getting around the big dollars involved here median home prices are (as of this writing in 2010) around $150,000 to $250,000 (depending on region), and in many areas it's far higher than that. Even with the market slumping, this is still a lot of money, and prices are likely to rise eventually, if history is any indicator. And that purchase price doesn't include closing costs and ongoing costs like homeowners' insurance, property taxes, and maintenance. Here's how to go about determining what you can realistically afford.
Review your budget and housing options. Set your sights on something that won't break your monthly budget. Once you build some equity, you can move up.
Jennifer says, "In Massachusetts, there was no way that I could have afforded anything other than a condo." And although she was hoping to continue living in Watertown, the only condos she could afford there were one-bedroom units in high-rises. Jennifer decided to compromise on location, and found a beautiful two-bedroom place in a restored 1920s building in what her friends teasingly call "the suburbs."
Diane managed to find a tiny place in Berkeley. Its small square footage and overgrown backyard made it affordable for her.
Research monthly costs and hidden costs. When crunching the numbers, remember to factor in homeowners' insurance, property taxes, utilities, and home maintenance. Also nose around for any hidden future costs, like upcoming major repairs (such as a cracked foundation) or increases in community association dues (in a condo complex or other planned community).
Consider getting a mortgage broker. Working with a good mortgage broker, says Diane, "helped demystify the process, so I could wrap my mind around those high numbers." The broker can help you make the most of your one-person income, and deal with any blights on your credit score. (On the bright side, as a single buyer you won't be among the women whose boyfriend's lousy credit score hurts them when mortgage-shopping!)
Consider loans from family or friends. This is a great strategy to help pay for a portion of, or even the entire, house price. Here are some ways it can work:
- Agree on an interest rate that's lower than what you'd pay a bank, but higher than what your friend would receive from similar investments like CDs a win-win situation.
- Ask your friend or relative to help with the down payment, in return for a percentage of the appreciation when you sell.
- Borrow a smaller amount of money to help cover first-year expenses, like decorating and repairs.
Even the most empowered of women might feel her heart race as she gets out of the car at 11 p.m. and walks up a dark staircase to an empty house. But there are ways to keep your heart rate down.
Investigate neighborhoods. Visit during various hours of the day and night, and ask the neighbors (like people gardening or out walking their dogs) how safe they feel living there.
Get crime stats from the police. Don't judge neighborhood safety on appearances, or even on regional statistics you might find online (they tend to cover a broad area). Get neighborhood crime statistics from the local police precinct.
Examine safety features of any house you're considering. Many single woman gravitate towards condo or townhouse communities for safety reasons. Jennifer says, "I made finding a unit on the second floor a priority. The one thing I didn't want to have to worry about was someone breaking through my window." But freestanding houses aren't off limits, especially if you look for:
- drive-in garages with interior access to the house or unit
- windows high off the ground
- solid doors with sturdy locks
- entrance paths that are well-lit and not hidden by shrubbery or rocks, and
- an alarm system.
Some of these you can add yourself, but avoid any house with unchangeable features like a front door that can't be seen from the street.
Look for a House to Match Your Lifestyle
Think about what you like to do, and what things are important in your life. For example, many single women choose houses with large kitchens, because entertaining is high on their list. Or, they look for a house that's within walking distance of their favorite restaurants or other meeting places. In fact, a Harvard study found that most unmarried women chose their house location based on proximity to family and friends rather than to work or school.
Be Ready if Your Life Changes and You Want to Move
What if you buy a house and then fall in love, or settle down with another person? What if your house isn't big enough for two? Some women actually fear that buying their own home will be a jinx that they're telling the universe, "I give up on finding the right person to share my life with."
Let's kill off all thoughts of that jinx. Jennifer says, "I feel like this is an environment where I could actually build a relationship with someone, and have the privacy to do that. It's a good feeling of strength." And Diane says, "I've just fallen in love, with a man who I think was attracted by the idea that I own property, something he doesn't have to worry about."
If you're open to the fact that your life and living situation may change, you can put yourself in a good position to adjust, by taking these steps:
Buy a house with resale value. Give yourself an exit strategy: a house with good resale potential. (This is a good idea for any buyer, and also important if something like a job transfer might be in your future.)
The easiest house to resell will be one that's well-constructed and maintained, aesthetically appealing, and in a good neighborhood. Don't buy the biggest, fanciest house on the block. (They're harder to resell, because people who can afford them often prefer to buy in a more upscale neighborhood.) And read the newspaper to learn of any neighborhood changes, like a coming development.
Watch out for mortgage prepayment penalties. You want to be able to sell within the early years of the mortgage without being assessed a penalty.
Arm Yourself With Information
Self-education is the key to feeling comfortable undertaking this process on your own. Some ways to get information:
- Talk to other single-women homebuyers about their experiences.
- Read books such as Nolo's Essential Guide to Buying Your First Home , by Ilona Bray, Alayna Schroeder, and Marcia Stewart (Nolo). This book is written by three women and also pays particular attention to women buyers.
- Attend a first-time homebuying course.
- Check out websites such as such as www.realtor.com, by the National Association of Realtors (NAR), and www.hud.gov, by the Department of Housing and Urban Development.
- Visit Sunday open houses in the area where you're interested, to get a sense of prices and availability. Ask the agent how much the house might really sell for, since list prices don't always match sales prices.
- Assemble a crack team of professionals, including an experienced real estate agent, mortage broker, and home inspector, who will listen and respond to your needs. Ask friends for recommendations, and interview two or three before making a choice.
With the right planning and choosing, you'll be able to look back, like Jennifer, and say, "I know I did the right thing."
For More Information
For a comprehensive guide that provides everything you need to help you select the right house, the right mortgage, the right agent and the right inspections, get Nolo's Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder and Marcia Stewart (Nolo).