As a home buyer, the search process can be overwhelming and exciting. There are so many elements to weigh when deciding between properties – from bedrooms, bathrooms, and outdoor space to upgrades and amenities – that it’s hard to determine what is truly necessary versus what would be nice-to-haves. To know where you should make compromises in your wish list when looking for a new home, you must start by understanding the basics of home-buying: determining which features are “must haves” vs. those that constitute your “wish list.” Here’s what you need to know.
How Much House Your Budget Can Buy
It’s easy for first-time homebuyers to daydream about how their new house will feel, look, and flow. A generous two- or three-hundred-dollar budget can make it all within reach. However, home shopping quickly reduces the possibility of having everything on your list due to its limited selection when trying to stay within your budget. That’s why it’s so important to prioritize what you must have in a house versus items that could wait until later or that you can compromise on.
Doing this exercise in advance might save you from disappointment down the line. Having realistic expectations puts you on the path to finding a great house that fits your needs and wallet best. Remember that you can always start small and expand over time. For example, you may have to settle for carpet initially but can install wood floors in a year or two when your finances allow.
Must Haves vs. Wish List Items
When looking for a new home, crafting a list of ‘must-haves’ and ‘wish-list items’ can help define what you are and aren’t willing to compromise on.
Must-have items might include things such as:
- Number of bedrooms and bathrooms
- The layout of the kitchen and living room
- A backyard or patio space
- good neighborhood schools and nearby shopping.
Wish-list items may include:
- Vaulted ceilings
- Marble bathroom counters
- Hardwood floors
- Bay windows and other luxurious features.
Prioritizing these items is vital to understanding what is most important when house hunting, so you can make compromises if needed. It would be best to consider how this will impact the home-buying process.
How Location Influences Home Values
Location is monumental when it comes to determining home value. Think of all the potential benefits of living near excellent schools, convenient transportation, and a myriad of amenities like restaurants, shops, recreation, and entertainment – it certainly adds up quickly.
If you’re looking for more bang for your buck, look at homes further away from these amenities and attractions to gain more house space. Choosing more distant locations will also open up the possibility for features such as large backyards or beautifully landscaped gardens. After all, it’s nice to enjoy your own personal outdoor area—even if it comes at the cost of foregoing easy access to nearby attractions.
Ultimately, weighing the importance of location versus features is a personal choice that’s best left up to you – but fortunately, with a bit of research and exploration into different neighborhoods around town, you can come up with the perfect solution for making your home sweet home!
Don't Forget to Factor Other Costs Besides Your Mortgage
Making a house your home is an exciting process, but before you leap, it’s essential to factor in additional costs that often come with it.
From property taxes and homeowner’s insurance to HOA fees and other costs of home maintenance, there are many ways that being a homeowner can add up to financial strain, and these expenses should be considered just as much as your down payment and estimated mortgage payments.
Instead of focusing solely on the properties you consider attractive based on price, consider those extra expenses associated with homeownership. With this knowledge base, you’ll be able to accurately adjust the wish list for your new home to match your ideal budget!
How Your Real Estate Agent Can Help
When shopping for a new home, having a real estate agent at your side can be incredibly beneficial. They possess the local expertise and resources to help you define and refine your must-haves and wish list items to find the perfect house for your needs and budget. Here are some of the ways a real estate agent can help:
- Contribute insights into various neighborhoods and local attractions: An experienced real estate agent can provide helpful information on what the local area offers, so you can make more informed decisions when selecting a location.
- Help arrange open houses and schedule visits: With an agent’s help, you can easily set up appointments for viewing potential homes and attend open houses whenever necessary.
- Provide a comparative market analysis: Realtors have access to data that will help you accurately estimate how much a particular home is worth, so you can make sure your purchase is well within budget.
- Negotiate on your behalf: When it comes time to negotiate the price and other details of the sale, having a real estate agent by your side can be invaluable.
- Assist in finding financing for your new home purchase: Your agent can provide you with contacts and valuable tips and resources to help you secure the ideal mortgage loan.
Shopping for a new home is an exciting and often intimidating process. But by doing your research, understanding what you can afford, factoring in all the associated costs of homeownership, and utilizing a qualified real estate agent’s assistance, you’ll be able to make an informed decision on your purchase that will give you the most house for your money. Talk with your local professional real estate buyer’s agent today for more information about how to differentiate between the items you have to have in your new home vs. the things that would be nice to have.