What Matters When Buying

The one and only thing to think about when making your home buying decision.

We’ve busted myths, explored the realities of homeownership, and considered what really matters when making the decision to buy a home. But when it comes down to it, what’s the one factor that truly determines whether buying a home is a smart move?

It’s simpler than you might think.

How long do you plan to stay in the home?

That’s it. No complicated formulas, no endless pros and cons lists—just this one question.

Why This Question Matters More Than Anything Else

Every other factor—your budget, the number of bedrooms, even the neighborhood—either ties back to how long you plan to stay or is completely out of your control.

Think about it:

• The number of bedrooms and bathrooms? That matters only if the home will suit your needs long enough before you outgrow it.

• Your commute to work? What happens if you get a new job across town? That’s something you can’t always predict.

• The housing market? Trying to time it perfectly is nearly impossible.

At the core of it all is one reality: movement matters.

Moving Isn’t Bad—Moving Too Often Is

People move for great reasons—new jobs, education, family changes, or lifestyle shifts. Moving itself isn’t the problem. The issue is that buying and selling a home every time you move is expensive—really expensive.

Between agent commissions, closing costs, and other fees, selling a home can cost anywhere from 8% to 15% of its value. On a $240,000 starter home, that’s $19,200 to $36,000—a cost you wouldn’t face if you were renting.

If your home appreciates in value, you might still come out ahead. But if it doesn’t? You could end up losing money—even wiping out any gains entirely.

The Five-Year Rule: A Simple Guideline for Homeownership

To avoid this financial pitfall, real estate experts often recommend the five-year rule:

If you’re going to buy a home, plan to stay for at least five years.

Why? Because, on average, it takes about five years for a home’s value to increase enough to offset the costs of buying and selling. The longer you stay beyond that, the better your investment tends to perform.

So, if you’re thinking about buying, ask yourself: Can I see myself living here for at least five years?

If the answer is yes, homeownership might be a great move. If not, renting may be the smarter choice—at least for now.

The Bottom Line

Buying a home isn’t just about finding the right place—it’s about making the right long-term decision. And while no one can predict the future, keeping this simple question in mind can help you make a smarter, more financially sound choice.

So, before you sign those papers, pause and ask yourself: How long do I really plan to stay? The answer could make all the difference.